scholarly journals How Sticky is Retirement Behavior in the U.S.? Responses to Changes in the Full Retirement Age

2020 ◽  
Author(s):  
Manasi Deshpande ◽  
Itzik Fadlon ◽  
Colin Gray
Keyword(s):  
Retirement Age ◽  
Retirement Behavior ◽  
The U.S

How Sticky Is Retirement Behavior in the U.S.?

2021 ◽  
pp. 1-55
Author(s):  
Manasi Deshpande ◽  
Itzik Fadlon ◽  
Colin Gray
Keyword(s):  
Social Security ◽  
Administrative Data ◽  
Regression Discontinuity ◽  
Cohort Analysis ◽  
Retirement Age ◽  
Regression Discontinuity Design ◽  
Suggestive Evidence ◽  
Research Designs ◽  
Retirement Behavior ◽  
The U.S

Abstract We study how increases in the U.S. Social Security full retirement age (FRA) affect benefit claiming behavior and retirement behavior separately. Using long panels of Social Security administrative data, we implement complementary research designs of a traditional cohort analysis and a regression-discontinuity design. We find that while claiming ages strongly and immediately shift in response to increases in the FRA, retirement ages exhibit persistent “stickiness” at the old FRA of 65. We use several strategies to explore the likely mechanisms behind the stickiness in retirement and find suggestive evidence that employers play a role in workers' responses to the FRA.

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.

Reasons for Working and Their Relationship to Retirement Attitudes, Job Satisfaction and Occupational Self-Efficacy of Bridge Employees

2005 ◽  
Vol 61 (1) ◽  
pp. 21-35 ◽  
Author(s):  
Veronica M. Dendinger ◽  
Gary A. Adams ◽  
Jamie D. Jacobson
Keyword(s):  
Job Satisfaction ◽  
Baby Boomers ◽  
Self Efficacy ◽  
Retirement Age ◽  
Bridge Employment ◽  
Reliable Predictor ◽  
The Social ◽  
Social Reason ◽  
The U.S

Although the Baby Boomers are the fastest growing segment of the U.S. population and they are quickly approaching retirement age, research has widely neglected to look at the reasons as to why many of them intend on opting for bridge employment as opposed to completely retiring. This study examined the relationships among four reasons for working (social, personal, financial, and generative) and three attitudinal responses to bridge employment (job satisfaction, retirement attitudes, and occupational self-efficacy). In a sample of 108 recent retirees holding bridge employment positions, it was found that generativity served as a reliable predictor of job satisfaction and attitudes toward retirement, whereas the social reason for work was only a reliable predictor of attitudes toward retirement.

scholarly journals Living Apart Together as a “Family Form” Among Persons of Retirement Age: The Appropriate Family Response

2019 ◽  
Author(s):  
Cynthia Grant Bowman
Keyword(s):  
Older Persons ◽  
Family Law ◽  
Social Science Research ◽  
Age Groups ◽  
Science Research ◽  
Retirement Age ◽  
Reasons For Living ◽  
Living Apart Together ◽  
Committed Couples ◽  
The U.S

52 Family Law Quarterly 1 (2018).This article discusses the phenomenon of “living apart together,” or LAT, among persons of retirement age. LATs are committed couples who maintain separate residences. The article first explores the literature on sexuality and dating among older persons and then discusses social science research done, primarily outside of the U.S., about LAT among persons in older age groups. It then describes what was learned from the author’s own interviews of LATs over the age of 65 about their reasons for living apart, their manner of life, economic arrangements, and mutual caregiving. Based on this research, it reaches a number of conclusions about what the appropriate legal treatment of these couples should be.

scholarly journals Health and retirement age: Comparison of expectations and actual retirement

2018 ◽  
Vol 46 (19_suppl) ◽  
pp. 18-31 ◽  
Author(s):  
Pekka Ilmakunnas ◽  
Seija Ilmakunnas
Keyword(s):  
Health Status ◽  
Subjective Assessment ◽  
Retirement Age ◽  
Full Time ◽  
Cross Sectional ◽  
Subjective Data ◽  
Retirement Behavior ◽  
Using Data ◽  
The Relationship

Aim: We examine the relationship between the subjective assessment of health status and retirement by using information on expected and actual retirement ages. Methods: Subjective data from cross-sectional surveys, conducted in Finland in 2003 and 2008, are linked to information on actual retirement age from register data from 2003 to 2013. Regression models are estimated for actual and expected retirement ages. Results: While the health status is positively correlated with both actual and anticipated full-time retirement age, the actual age of retirement is less sensitive to health. On average, individuals tend to retire later than they had anticipated. We examine potential biases in the health–retirement relationship. Measurement error in regard to health status biases the results downwards. Using data on observed retirement ages, omitting those who do not retire during the data period, leads to a selection problem. Ignoring the selection also leads to a downwards bias in the health–retirement age connection. As a more exogenous health variable we use health shocks, which are measured by average annual days of absence due to sickness in the follow-up period. These shocks are negatively related to retirement age in a subsample of initially healthy individuals. Conclusions: When subjective assessment of health is used for explaining retirement behavior, the effects of health can often be underestimated rather than overestimated. To lengthen working careers, attention should be given to both the ability (health) and willingness (perceptions of proper retirement age) of people to continue longer at work.

scholarly journals Employer-Provided Health Insurance and Retirement Behavior

ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 124-140 ◽  
Author(s):  
Alan L. Gustman ◽  
Thomas L. Steinmeier
Keyword(s):  
Health Insurance ◽  
Private Health Insurance ◽  
Health Benefits ◽  
Retirement Age ◽  
Survey Of Consumer Finances ◽  
Consumer Finances ◽  
National Medical ◽  
Retirement Behavior ◽  
Using Data ◽  
The Cost

Using data from the 1969–79 Retirement History Study, the 1977 National Medical Care Expenditure Survey, the 1983–86 Survey of Consumer Finances, and the 1988 Current Population Survey, the authors analyze, with a structural retirement model, the effect on retirement of employer-provided health benefits. Such benefits, they find, tend to delay retirement until the age of eligibility and afterward to accelerate it. The net effect is small: employer-provided health benefits lowered male retirement age by only about 1.3 months. Valuing health benefits at the price of private health insurance to unaffiliated men, rather than at the cost to employers, increases the effect. Ignoring retiree health benefits in retirement models creates only a small bias.

scholarly journals Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age

2012 ◽  
Vol 4 (4) ◽  
pp. 41-67 ◽  
Author(s):  
Luc Behaghel ◽  
David M Blau
Keyword(s):  
Social Security ◽  
Loss Aversion ◽  
Strong Evidence ◽  
Cognitive Skills ◽  
Behavioral Responses ◽  
Framing Effects ◽  
Retirement Age ◽  
Reference Dependence ◽  
Social Security Reform ◽  
Retirement Behavior

We use a US Social Security reform as a quasi-experiment to provide evidence on framing effects in retirement behavior. The reform increased the full retirement age (FRA) from 65 to 66 in two-month increments per year of birth. We find strong evidence that the spike in the benefit claiming hazard at 65 moved in lockstep along with the FRA. Results on self-reported retirement and exit from employment go in the same direction. The responsiveness to the new FRA is stronger for people with higher cognitive skills. We interpret the findings as evidence of reference dependence with loss aversion. (JEL D91, H55, J14, J26)

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