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 Retaining older workers: the effect of phased retirement on delaying early retirement

2015 ◽  
Vol 6 ◽  
Author(s):  
Åsmund Hermansen
Keyword(s):  
Relative Risk ◽  
Older Workers ◽  
Early Retirement ◽  
Working Hours ◽  
Full Time ◽  
Flexible Working Hours ◽  
Flexible Working ◽  
Before And After ◽  
Phased Retirement ◽  
The Impact

Introduction: Phased retirement involves reducing working time in the final years before retirement. The aim of phased retirement is to extend working careers and retain older workers who would otherwise opt for full early retirement. This article investigates the effect of offering phased retirement on early-retirement behaviour in Norway.Method: The data used in the analysis covers the period between 2000 and 2010 and comprises all employees between 61 and 62 years of age (N= 18 174) who were employed in any of the 442 companies that participated in a 2010 survey carried out by the Fafo Institute for Labour and Social Research and Respons Analyse AS, a Norwegian research firm. I use a difference-in-differences approach and logistic regression, which enables the measurement of changes in the individual relative risk of retiring full-time on the contractual pension (AFP, avtalefestet pensjon, contractual early-retirement pension,) before and after the introduction of phased retirement as a retention measure.Results: The results show that working in a company that offers reduced working hours for older workers does not have an effect on the relative risk of a 61- or 62-year-old withdrawing a full contractual pension in the next two years of their employment. This result is evident both before and after controlling for a range of known individual risk factors, as well as after controlling for company characteristics.Discussion: In the search for suitable measures for retaining older workers, offering phased retirement may still be part of the answer. Though my analysis does not support the idea that more flexible working hours is a decisive factor for those who choose to opt for full early retirement, a possible next step could be to investigate the impact of offering flexible working hours on the employment duration of those who do remain in employment.

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 Origins and Mechanisms of Social Influences in Couples: The Case of Retirement Decisions

2019 ◽  
Vol 35 (6) ◽  
pp. 790-806 ◽  
Author(s):  
Maria Eismann ◽  
Kène Henkens ◽  
Matthijs Kalmijn
Keyword(s):  
Older Workers ◽  
Instrumental Variable ◽  
Early Retirement ◽  
Variable Approach ◽  
Partner Influence ◽  
Course Work ◽  
Self Interest ◽  
Retirement Decisions ◽  
Instrumental Variable Approach ◽  
Large Representative

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 article pays detailed attention to the role a partner plays in workers’ labour market decisions by analysing the case of early retirement decisions. We hypothesized that partners’ preferences for older workers’ retirement originate from altruism and self-interest. Moreover, we expected that partners influence older workers’ early retirement behaviour via persuasion and pressure. To adequately estimate partners’ and workers’ preferences for the worker’s retirement, we used an instrumental variable approach. This was possible because we collected multi-actor longitudinal data from a large representative sample of older workers and their partners in the Netherlands. The results support that spousal preferences originate in altruism and self-interest and that partners influence workers through persuasion and pressure. Gender differences in origins and mechanisms of partner influence are also discussed.

Geographical Redistribution and Public Pensions: The Case of Italy

2003 ◽  
Vol 21 (2) ◽  
pp. 167-191
Author(s):  
Monica Auteri ◽  
Fabrizio Antolini
Keyword(s):  
Older Workers ◽  
Early Retirement ◽  
Public Pensions ◽  
Easy Access ◽  
Main Hypothesis ◽  
Transfer Programs ◽  
Italian Government ◽  
Italian Regions ◽  
Retirement Decisions ◽  
Social Transfer

Abstract This paper focuses on the effects of selected Italian welfare instruments, such as the seniority pensions and the early retirement pensions. The main instruments of the Italian welfare state are described, distinguishing between assistance and insurance transfers. With a cluster analysis, the distribution of specific welfare instruments among Italian regions is thoroughly investigated and then the link between retirement decisions and the selected welfare instruments is assessed. T h e main hypothesis under investigation is that the relatively easy access to various social transfer programs enabled certain categories of older workers to withdraw from the labor market. In this framework, Italian public pensions played a prominent role in the transfer programs becoming the improper device used by the Italian government to cope with unemployment problems.

‘I'd rather keep running to the end and then jump off the cliff’. Retirement Decisions: Who Decides?

2006 ◽  
Vol 35 (3) ◽  
pp. 455-472 ◽  
Author(s):  
SARAH VICKERSTAFF
Keyword(s):  
Early Retirement ◽  
Early Research ◽  
Individual Factors ◽  
Retirement Decisions ◽  
Retirement Timing ◽  
The Uk ◽  
New Research ◽  
Choosing To Leave ◽  
Real Target

Government in the UK, as elsewhere in Europe, is keen to encourage individuals to delay their retirement, work for longer and save more for their retirement. This article argues that much of this public discussion is based on the debatable premise that most people are actively choosing to leave work ‘early’. Research on retirement decisions hitherto has concentrated on individual factors, which dispose towards early retirement and has neglected the role of the employer in determining retirement timing. New research reported here, undertaken in three organisational case studies, explores the management of retirement and how individual employees experience these processes. It employs the concepts of the ‘retirement zone’ and retirement scenarios to demonstrate how the interaction of individual attributes (themselves subject to change) and organisational practices (also unpredictable and variable) produces retirement outcomes. It concludes that there is considerable management discretion over the manner and timing of individual retirements. Hence, government needs to recognise that the majority of individuals may have relatively little personal discretion over their departure from work and hence concentration on urging them to work for longer and delay retiring may be missing the real target for policy change.

Early Retirement Decisions and How They Affect Later Quality of Life

1996 ◽  
Vol 16 (2) ◽  
pp. 177-204 ◽  
Author(s):  
A.J. Maule ◽  
D. R. Cliff ◽  
R. Taylor
Keyword(s):  
Quality Of Life ◽  
Decision Making ◽  
Decision Analysis ◽  
Older Workers ◽  
Early Retirement ◽  
Western Europe ◽  
Manufacturing Sector ◽  
Work Force ◽  
Retirement Decisions

AbstractOlder workers are often placed in an unenviable position in the face of stereotypes which define them as increasingly marginal in the work force, and view retirement in terms of status loss and disengagement. Yet voluntary early retirement schemes have been a recent feature of work organisations of all types in Britain, Western Europe and North America. The nature of the decision-making processes of those involved in such schemes has not been widely researched and such studies as have been conducted have not drawn on the existing framework of decision analysis. This paper reports the findings of two linked studies into the early retirement decisions of men working in Britain for a large multinational company in the manufacturing sector. The first investigated the factors deemed to be important for a group of men at the point of decision whilst the second investigated both the factors deemed to be important and the quality of life of a group of men who had taken the decision to retire early between 18 months and 3 years previously. Both studies indicated that the decision-making process is complex and cannot be reduced to single-factors like health or financial status. The most important factor in the quality of life of early retirees was the matching of expectations of further work at the point of decision. The studies illustrated the utility of a decision analysis approach to the study of early retirement.

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

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