scholarly journals The Effect of Retaining Bonuses on Delaying Early Retirement – Financial Incentives Revisited

2018 ◽  
Vol 8 (1) ◽  
Author(s):  
Åsmund Hermansen ◽  
Tove Midtsundstad
Keyword(s):  
Older Workers ◽  
Financial Incentives ◽  
Early Retirement ◽  
Register Data ◽  
Older Employees ◽  
Lump Sum ◽  
Retirement Behavior ◽  
The Mean ◽  
Unique Dataset

In this paper, we analyze the effect of the retaining bonus on early retirement behavior using a unique dataset consisting of a Norwegian employer survey from 2010 combined with register data on all older employees in the period 2000–2010. The retaining bonus is one of the most common retention measures offered by Norwegian companies to prevent their older workers from retiring early. The most common arrangement is a lump sum of between 10,000 and 25,000 Norwegian Kroner (between 1100 and 2600 Euros), which was less than the mean monthly pay before tax in Norway in 2010. In spite of this modest sum, our analysis shows that retaining bonuses of 20,000 NOK or more do reduce the probability of 61-year-olds retiring in the next two years of employment

Early-retirement reform: can it and will it work?

2002 ◽  
Vol 22 (2) ◽  
pp. 209-231 ◽  
Author(s):  
HENDRIK P. VAN DALEN ◽  
KÈNE HENKENS
Keyword(s):  
Government Policy ◽  
Older Workers ◽  
Financial Incentives ◽  
Early Retirement ◽  
Central Government ◽  
Labour Force ◽  
Policy Reforms ◽  
Policy Objective ◽  
Long Run ◽  
Retirement Intentions

Early retirement from the labour force has become standard practice for most employees in the industrialised world. However, as a result of the rising costs of early-retirement schemes, curbing the outflow of older workers from the labour force has become a central government policy objective. Early-retirement reforms under which benefits are financed on a more actuarially neutral basis are currently being implemented in The Netherlands. At present it is not clear how older workers will react to these policy reforms. In this article we examine the extent to which (Dutch) older workers are inclined to change their retirement intentions in response to new early-retirement arrangements. On the basis of a labour market and a population survey we examine retirement intentions under alternative early-retirement policies. The overall conclusion is that the retirement reform may lead to a substantial delay of the retirement date, but that in practice factors other than financial incentives are powerfully at work. This is also reflected in the long-run early-retirement trend. This trend presents demographers and economists with a puzzle, because while a break can be identified in the time series, it set in before the early-retirement reforms were put into practice.

scholarly journals Additional Leave as the Determinant of Retirement Timing—Retaining Older Workers in Norway

2015 ◽  
Vol 4 (4) ◽  
pp. 89 ◽  
Author(s):  
Åsmund Hermansen
Keyword(s):  
Relative Risk ◽  
Older Workers ◽  
Early Retirement ◽  
Retirement Pension ◽  
Retirement Decisions ◽  
Retirement Timing ◽  
Retirement Behavior ◽  
Before And After ◽  
Retention Measure ◽  
The Individual

Faced with a rapidly aging labor force, increasing the labor supply of older workers has become an important goal for European countries. Offering additional leave to older workers with the option of withdrawing a contractual pension (contractual early retirement pension AFP) has become a widespread retention measure in Norwegian companies. Thus far, no studies documenting the effects of individual retention measures on early retirement behavior have been published. The aim of this article is to examine whether offering additional leave impacts the relative risk of withdrawal of a contractual pension. The analysis uses a difference-in-differences approach and examines whether offering additional leave to counteract early retirement impacts the retirement decisions of 61- and 62-year-olds within the next two years of their employment, controlling for a range of different individual and company characteristics. This is achieved by comparing changes and differences in the individual relative risk of retiring early on the contractual pension (AFP scheme) in the period 2001–2010 among older workers in companies with and without the retention measure. The analysis shows an overall average increase in the relative risk of a 61- or 62-year-old worker retiring on the contractual pension between 2001 and 2010; however, among older workers employed in companies offering additional leave there has been a decrease in the relative risk. The effect of additional leave is evident both before and after controlling for the selected individual and company characteristics. Thus, the analysis shows that offering additional leave as a retention measure reduces the individual relative risk of withdrawing a contractual pension (AFP) in the next two years of employment among older workers between the age of 61 and 62 years.

scholarly journals SPOUSAL INFLUENCE ON EARLY RETIREMENT DECISIONS: ORIGINS AND MECHANISMS

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S42-S43
Author(s):  
Maria Eismann ◽  
Kène Henkens ◽  
Matthijs Kalmijn
Keyword(s):  
Older Workers ◽  
Early Retirement ◽  
Variable Approach ◽  
Course Work ◽  
Self Interest ◽  
Retirement Decisions ◽  
Retirement Behavior ◽  
Spousal Influence ◽  
Labor Market Decisions ◽  
Instrumental Variable Approach

Abstract The interdependence between partners raises considerable interest in the sociology of life course, work and families. Partner influences play a particularly important role in the work domain, because each partner’s work decisions have profound effects on the couple as a whole. In contrast to previous research, this study pays detailed attention to the role partners play in workers’ labor market decisions by using the case of early retirement decisions. We hypothesize that partners’ preferences for older workers’ retirement originate from altruism and self-interest. For example, partners might prefer workers to retire early because the worker’s job is highly stressful or partners might prefer workers to retire early to increase possibilities for joint leisure. Moreover, we expected that partners influence older workers’ early retirement behavior via persuasion and pressure. So, partners might either convince workers to change their preferences, or they might pressure workers to act according to the partners’ preferences, irrespective of workers’ own preferences. To adequately estimate partners’ and workers’ preferences for workers’ early retirement, we used an instrumental variable approach. This was possible due to the multi-actor longitudinal data available from a large representative sample of older workers and their partners in the Netherlands. The results support that partners’ preferences originate in altruism and self-interest and that partners influence workers through persuasion and pressure. Gender differences were marginal, with stronger signs for altruistic origins among female than male partners.

scholarly journals Effects of Companies’ Initiatives to Reduce Early Retirement Among Older Workers

2012 ◽  
Vol 2 (3) ◽  
pp. 89 ◽  
Author(s):  
Tove Midtsundstad ◽  
Åsmund Hermansen ◽  
Roy A. Nielsen
Keyword(s):  
Older Workers ◽  
Early Retirement ◽  
Preventive Measures ◽  
Research Question ◽  
Active Ageing ◽  
Policy And Practice ◽  
Older Employees ◽  
Retirement Decisions ◽  
Employment Rates ◽  
The Individual

Although active ageing policy and practice vary between countries, we believe that knowledge about the effects of Norwegian companies’ initiatives to delay early retirement is of interest for all countries striving to increase the employment rates of older workers. Since the agreement on a more inclusive working life (IW agreement) was signed in 2001, the Norwegian government and social partners have encouraged companies to develop a more senior-friendly policy and implement special measures to retain older workers. In this article, we evaluate the effects of such measures. Our research question is, have preventive measures offered by companies to employees aged 62 years and older contributed to reduced rates of early retirement? We use a ‘difference-in-differences’ approach and examine whether measures at the company level to counteract early retirement actually affect older employees’ retirement decisions, controlling for different individual and enterprise factors. This is done by comparing changes and differences in the individual likelihood of early retirement on the contractual pension (AFP scheme) and disability pension in the period 2002–2007 among employees 62 years of age in businesses with and without the corresponding preventive measures/instruments. The analyses show that the likelihood that a 62-year-old worker will retire on the AFP scheme has increased from 2002 to 2007. This applies equally to 62-year-old employees in enterprises that have enacted special measures to retain older workers as well as 62-year-olds in enterprises that have not enacted any such measures. On the other hand, the likelihood that a 62-year-old worker will retire because of disability decreased from 2002 to 2007, among employees in both the intervention enterprises and the control enterprises. However, when controlling for other relevant characteristics of individuals and enterprises, the analysis indicates that the measures as such have had no effect on the likelihood of 62-year-olds retiring.

scholarly journals Actuarial deductions for early retirement

2021 ◽  
pp. 1-27
Author(s):  
Markus Knell
Keyword(s):  
Early Retirement ◽  
Pension System ◽  
Budget Constraint ◽  
Retirement Age ◽  
Single Individual ◽  
Internal Rate Of Return ◽  
Market Interest Rate ◽  
Long Run ◽  
Retirement Behavior ◽  
The Right

Abstract This paper studies how the rates of deduction for early retirement have to be determined in pay-as-you-go (PAYG) systems in order to keep their budget stable. The derivation of these deductions requires the use of a multiperiod intertemporal budget constraint that involves assumptions about the retirement behavior of past, present, and future cohorts. In general, it is not possible to calculate budget-neutral deductions from the budget constraint of a single individual who retires before the target retirement age—an approach that dominates the related literature. Only for specific cases one can use this second approach but then one has to adjust the discount rate to the assumption about collective retirement. If there is only one deviating individual, then the right choice is the market interest rate while for a stationary retirement distribution it is the internal rate of return of the PAYG system. In this case, the necessary deductions are lower than under the standard approach. This is also true for retirement ages that fluctuate randomly around a stationary distribution. Various long-run developments (e.g., increases in life expectancy or permanent changes in the average retirement age) might cause challenges for the sustainability of the pension system. These developments, however, can only be dealt with by adequate adjustments to the basic pension formulas and not by the use of deduction rates.

Labour market disadvantage or poor health upon arrival? An examination of the native–immigrant gap in early retirement on a disability pension

2021 ◽  
pp. 000169932110228
Author(s):  
Jeevitha Yogachandiran Qvist ◽  
Hans-Peter Y Qvist
Keyword(s):  
Labour Market ◽  
Disability Pension ◽  
Early Retirement ◽  
Register Data ◽  
Labour Markets ◽  
Poor Health ◽  
Health Differences ◽  
A Minor ◽  
Efficiency And Productivity ◽  
Advanced Capitalist

Non-Western immigrants in Scandinavia have a higher risk of early retirement on a disability pension than natives, but the reasons are unclear. One theory is that increased demands for standardization, efficiency and productivity in advanced capitalist labour markets, such as the Scandinavian market, cause expulsion of the weakest and least qualified individuals from the labour market, including a disproportionate share of non-Western immigrants. Another theory is that non-Western immigrants already have poorer health than natives upon arrival in Scandinavia. This article examines the extent to which the native–immigrant gap in early retirement on a disability pension is explained by non-Western immigrants’ disadvantaged position in the labour market when pre-existing health differences are controlled for. To this end, we draw on Danish register data, including all disability pensions granted in 2003–2012 to natives and non-Western immigrants who arrived in Denmark in 1998. Our results suggest that a minor proportion of the native–immigrant gap in disability pensions is explained by non-Western immigrants’ health upon arrival, whereas the vast majority of the gap is explained by non-Western immigrants’ disadvantaged position in the labour market.

Media portrayals of older employees: a success story?

2014 ◽  
Vol 27 (4) ◽  
pp. 583-597 ◽  
Author(s):  
Martine van Selm ◽  
Beatrice I.J.M. Van der Heijden
Keyword(s):  
Mass Media ◽  
Older Workers ◽  
Longitudinal Research ◽  
Empirical Studies ◽  
Empirical Work ◽  
Corporate Communication ◽  
Content Type ◽  
Media Portrayals ◽  
Older Employees ◽  
Age Related

Purpose – The purpose of this paper is to provide an analysis of how portrayals of older employees in mass media messages can help combating stereotypical beliefs on their employability. Design/methodology/approach – The authors conducted a systematic review of empirical studies on mass media portrayals of older employees in order to show what these reveal about the ways in which their employment status, occupation, job type, or work setting is portrayed. The approach builds upon theory on media portrayals, media effects, and stereotypes of older workers’ employability. Findings – This study shows that older employees in media portrayals, when present at all, are relatively often shown in higher-level professional roles, herewith overall, depicting an image that is positive, yet differs from stereotypical beliefs on their employability that are prevalent in working organizations. Research limitations/implications – Further empirical work is needed to more safely conclude on the prevalence of age-related portrayals of work and employment in mass media. In addition, longitudinal research is called for in order to better understand the possible causes for the way in which older employees are portrayed, as well as effects of age-related stereotyping in mass media and corporate communication outlets over time. Practical implications – This research sparks ideas about how new portrayals of older employees in mass media and corporate communication outlets can contribute to novel approaches to managing an aging and multi-generational workforce. Social implications – This study shows how working organizations can make use of the positive and powerful media portrayals of older employees, in order to activate normal and non-ageist behaviors toward them, and herewith, to increase their life-long employability. Originality/value – This study highlights the role of media portrayals of older employees in combating stereotypes about their employability.

Retirement intentions of older consultant psychiatrists

2004 ◽  
Vol 28 (4) ◽  
pp. 130-132 ◽  
Author(s):  
Alex Mears ◽  
Tim Kendall ◽  
Cornelius Katona ◽  
Carole Pashley ◽  
Sarah Pajak
Keyword(s):  
Early Retirement ◽  
Response Rate ◽  
Important Determinant ◽  
Clinical Implications ◽  
Consultant Psychiatrist ◽  
Health Officer ◽  
Decisions To Leave ◽  
The Mean ◽  
The Uk ◽  
Retirement Intentions

Aims and MethodThis survey gathered data on the retirement intentions of consultant psychiatrists over the age of 50 years, in order to address retention issues. A questionnaire was sent to all 1438 consultants over this age in the UK.ResultsA total of 848 questionnaires were returned, an adjusted response rate of 59%. The mean age at which consultants intended to retire in this sample was 60 years (s.d. 4.16), suggesting a potential loss of 5725 consultant years. Reasons for early retirement are complex: factors encouraging retirement include too much bureaucracy, lack of free time and heavy case-loads; those discouraging retirement include enjoyment of work, having a good team and money. Mental Health Officer status is an important determinant in the decision to retire early.Clinical ImplicationsWith numerous vacancies in consultant psychiatrist posts throughout the UK, premature retirement is a cause for concern, possibly contributing to an overall reduction in consultant numbers of 5%. Addressing factors that influence consultants' decisions to leave the health service early should form an important part of an overall strategy to increase consultant numbers.

scholarly journals Swedish Collective Agreements and Employers’ Willingness to Hire and Retain Older Workers in Employment

2016 ◽  
Vol 6 (2) ◽  
pp. 61 ◽  
Author(s):  
Carin Ulander-Wänman
Keyword(s):  
Older Workers ◽  
Total Population ◽  
Working Hours ◽  
Working Life ◽  
Legal Regulation ◽  
Retirement Age ◽  
Elderly Persons ◽  
Older Employees ◽  
Collective Agreements ◽  
The Eu

Demographic change is transforming the EU population structure for the coming decades. One challenge that society faces is to preserve social welfare when elderly persons comprise a larger proportion of the total population. Allowing people to work beyond the current retirement age may help slow the growth of the maintenance burden for welfare costs, and creating situations where larger numbers of older employees can work longer and complete more working hours can improve conditions for preserving and developing welfare. However, a prolonged working life presupposes several conditions; one of these is that legal regulation of the labor market must support employers’ willingness to hire and retain older workers in employment. This article explores employers’ attitudes toward regulations in Swedish collective agreements—regulations which are of particular importance if employers are to increase hiring and retention of older workers in employment.

scholarly journals Early Retirement and Financial Incentives: Differences between High and Low Wage Earners

2014 ◽  
Author(s):  
Rob Euwals ◽  
Elisabetta Trevisan
Keyword(s):  
Financial Incentives ◽  
Early Retirement ◽  
Wage Earners
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