As the leading edge of the 'Baby Boom' generation attains age 60, members of this unusually large cohort born 1946-66 are poised to redefine retirement - just as they have restructured educational, ...housing, and labor markets in prior days. Looking ahead, their numbers and energy are sure to have a major impact on national pensions, healthcare, and social safety nets. Contributors to this volume note that 'Boomers' will be better off than their predecessors in many ways, having benefited from the long run-up in housing prices, dramatic improvements in healthcare, and the expanding economy. On the other hand, the generation's sheer size will surely squeeze resources and require new approaches to retirement risk management. This volume paints a complex and fascinating picture as Boomers move into retirement. On average they are in better financial and physical health than prior cohorts, and they can be anticipated to fare better than current retirees in absolute terms. Yet the distribution of retiree income and wealth will be less equal than in earlier years, and in relative terms, many Boomers will be less well off than their forebears. Contributors to the volume use many invaluable models and datasets, including the incomparable Health and Retirement Study (HRS) which affords unique insights into the status of mature adults surveyed at the same age and hence same point in their life cycles, but at three different time periods. Analysts offer new evidence about prospects for health and income during retirement, as well as pensions and housing equity, health, portfolio allocation, and financial literacy. This book offers readers an invaluable and first book-length study of Boomers as they march into retirement. As such, it represents an invaluable addition to the Pension Research Council/Oxford University Press series. It will be especially useful for scholars and policymakers seeking to understand retirement preparedness, to actuaries and tax specialists concerned with retirement system regulation, and to plan sponsors interested in the determinants of work and retirement at older ages. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/management/9780199230778/toc.html Contributors to this volume - Jason Beeler, consultant at Mercer Oliver Wyman, Barbara A. Butrica, Senior Research Associate, the Income and Benefits Policy Center, The Urban Institute, Julia L. Coronado, Senior US Economist, Barclays Capital, Chris Cunningham, research economist and assistant policy adviser, Federal Reserve Bank of Atlanta, Gary V. Engelhardt, Associate Professor of Economics and a Senior Research Associate, Center for Policy Research, the Maxwell School of Citizenship and Public Affairs, Syracuse University, Leora Friedberg, Assistant Professor of Economics, University of Virginia, Robert Haveman, Professor Emeritus of Economics and Public Affairs, and Research Associate at the Institute for Research on Poverty, University of Wisconsin-Madison, Karen Holden, Associate Director of the La Follette School of Public Affairs and Professor of Consumer Science and Public Affairs, University of Wisconsin-Madison, Michael D. Hurd, Director, RAND Center for the Study of Aging, Howard M. Iams, Division Director in the Office of Policy, Office of Research Evaluation and Statistics, Division of Policy Evaluation, Social Security Administration, Anders Karlsson, doctoral student, Stockholm University, Anil Kumar, Economist, regional group, Federal Reserve Bank of Dallas, Helen G. Levy, Research Assistant Professor, Institute for Social Research, and Assistant Research Scientist School of Public Health, University of Michigan, Annamaria Lusardi, Professor of Economics, Dartmouth College, Brigitte Madrian, Professor of Public Policy and Corporate Management in the Aetna Chair, Kennedy School of Government, Harvard University, Nicole Maestas, Associate Economist, RAND, Dean Maki, Director and Chief US Economist, Barclays Capital, Joyce Manchester, Director, Division of Economic Research, Office of Policy, Social Security Administration, Massimo Massa, Assistant Professor of Finance, INSEAD, John F. McCabe, programmer and research analyst, , Population Studies Center, University of Pennsylvania in Philadelphia, Olivia S. Mitchell, Executive Director of the Pension Research Council, Wharton School, University of Pennsylvania , Susann Rohwedder, Associate Economist, RAND, Andrei Romanov, Robert M. La Follette School of Public Affairs, University of Wisconsin-Madison, Andrei Simonov, Associate Professor of Finance, Stockholm School of Economics, and Research Associate, Stockholm Institute for Financial Research and Stockholm International Corporate Governance Institute, Karen E. Smith, Senior Research Associate, The Urban Institute, Beth J. Soldo, Distinguished Senior Scholar, Department of Sociology, University of Pennsylvania, Rania Tfaily, Assistant Professor of Sociology, Carleton University, Canada, David Weaver, Deputy Associate Commissioner for Retirement Policy, Social Security Administration, Anthony Webb Senior Research Analyst, International Longevity Center-USA, David Weir Research Professor, Institute for Social Research, University of Michigan, and Co-Director of the Health and Retirement Study, Ben Weitzer, Research Analyst in the Research and Information Center, Watson Wyatt Worldwide, Kevin Whitman, Social Science Research Analyst, Social Security Administration's Office of Retirement Policy, Barbara L. Wolfe, Professor of Economics, Population Health Sciences, and Public Affairs, and Faculty Affiliate, Institute for Research on Poverty, University of Wisconsin- Madison.
The aim of the study is to fill the research gap in relation to one of the behavioral factors that have a potential impact on retirement decisions-the framing effect. A research question addressed in ...the study is whether the way in which the decision-making problem is formulated (the framing effect) influences decisions on the planned retirement age. To answer this question, an original research questionnaire was developed. It included a description of a hypothetical pension system and experimental vignette questions. The research was conducted on the basis of answers given by 1079 randomly selected respondents who were participants of the pension system in Poland before retirement. In the analysis of the results, non-parametric tests and multiple logistic regression were used to compare response distributions. As a result of the conducted research, it was proven that the framing effect significantly affects the extension of the planned retirement age. At the same time, it was found that loss framing affects pension decisions to a greater extent than gain framing. It has also been noted that women are more susceptible than men to the framing of pension decisions. An application conclusion resulting from the conducted research is indicated as the possibility of the intentional use of the framing effect by decision-makers in order to increase the effective retirement age.
This paper estimates the impact of social pension programs on retirement planning in rural China, focusing on the New Rural Pension Scheme (NRPS). Retirement planning is defined as an individual's ...intention to detach from the workforce at a given age instead of working for as long as physically possible. We also consider an individual's self‐reported health characteristics and subjective life expectancy. Overall, we find that the NRPS does not incentivize younger workers (those under 60 years of age) to plan their retirement; instead, they are more likely to remain in the workforce permanently to compensate for the additional costs. However, the NRPS provides a greater incentive for older workers (those 60 years of age and older) to plan their retirement than if there was no scheme. This result is particularly relevant for older unhealthy workers with a longer subjective life expectancy. We also find evidence that mental health status is key for the effectiveness of the policy.
Notwithstanding the terrible price the world has paid in the Coronavirus pandemic, the fact remains that longevity at older ages is likely to continue to rise in the medium and longer term. This ...volume explores how the private and public sectors can collaborate via public-private partnerships (PPPs) to develop new mechanisms to reduce older people’s risk of outliving their assets in later life. As we show in this volume, PPPs typically involve shared government financing alongside private-sector partner expertise, management responsibility, and accountability. In addition to offering empirical evidence on examples where this is working well, our contributors provide case studies, discuss survey results, and examine a variety of different financial and insurance products to better meet the needs of the aging population. The volume will be informative to researchers, plan sponsors, students, and policymakers seeking to enhance retirement plan offerings.
We investigate the responsiveness of individual retirement decisions to changes in financial incentives. A reform increased women's normal retirement age (NRA) in two steps from age 62 to age 63 ...first and then to age 64. At the same time retirement at the previous NRA became possible at a benefit discount. Since the reform affected specific birth cohorts we can identify causal effects. We find strong and robust behavioral effects of changes in financial retirement incentives. A permanent reduction of retirement benefits by 3.4% induces a decline in the age-specific annual retirement probability by over 50%. The response to changes in financial retirement benefits varies with educational background: those with low education respond most strongly to an increase in the price of leisure.
► We study the response of retirement decisions to financial incentives. ► For identification we use a natural experiment. ► We find strong behavioral effects of changes in financial incentives. ► Those with low education respond most strongly. ► The response to the reform intensifies over time.
•This study investigates the effects of psychosocial factors on four types of purchase intentions of financial products.•Retirement goal clarity partially mediates the effects of psychosocial factors ...on the purchase intention of annuity products.•The mediation of retirement goal clarity in the social norms-purchase intention relation is stronger among younger workers.
Previous research on retirement planning largely focuses on the general tendency to save for retirement. By integrating two theoretical models, namely, interdisciplinary psycho-motivation model and the theory of reasoned action, the present study aims to advance the previous work to examine the effects of social (social norms and social support) and psychological (future time perspective and financial literacy) factors on behavioral intentions for purchasing specific financial products for retirement. Cross-sectional data were obtained from 598 Hong Kong Chinese working adults of a wide age range. Mediation analysis showed that retirement goal clarity could partly account for the effects of financial literacy, social norms, and social support on the purchase intentions of both annuity and other saving products in the commercial market. Additional moderated mediation analyses revealed a stronger mediating effect of retirement goal clarity on the relationship between social norms and annuity products in younger workers than that in older workers. Findings of this study provide valuable insights into the roles of retirement goal clarity and age in the purchase intentions of financial products for retirement. The examination of the newly launched tax-deductible products in younger and older workers further discloses these products are relatively more attractive to younger individuals as a means of financial retirement planning.
Aging populations pose a persistent challenge to the sustainability of public pension systems. To tackle these financial pressures, many countries strengthen the incentives to work by increasing the ...statutory retirement age and reducing early retirement benefits. These policy reforms make retirement a topic of utmost importance for individuals, organizations, and societies. Although retirement predictors are already a widely studied topic in the literature, there is still much to investigate about why people decide to retire when they do. In particular, the role of work-related variables in the retirement decision-making process is still not fully understood. Thus, the aim of this study was to examine how individual and work factors influence retirement timing (early, on-time, and later retirement). Forty-one interviews were conducted, and data were subjected to content analysis. The inter-relationship between the multiple categories was analyzed by a Multiple Correspondence Analysis (MCA) combined with Cluster Analysis. Results revealed three distinct profiles, which allowed us to group the participants into three clusters. The
stay factors
profile (e.g., high positive experiences at work, having no dependents, the spouse/partner not being retired) was associated with later retirement. These results can be important for organizations that want and need to retain the best senior talents, by acknowledging that positive experiences at work are associated with older workers’ desire of postponing retirement.
The aim of this study is the reconstruction of the multifaceted points of view related to the transition from work to retirement using a gender perspective. This article includes 40 interviews of ...ageing Italian workers, 24 women and 16 men, carried out in the cusp of retirement (wave 1) and two years after retirement (wave 3). The experiences related to the ‘decision to retire’ and ‘life after retirement’ were analysed using a complex theoretical framework based on the work of Bourdieu combined with the concept of gendered habitus developed by feminists’ theorizations. The findings identified the elements characterizing women’s narratives in such a way that it was possible to describe the ambivalent women’s positions embedded in the Italian socio-economic context. The voices of the participants were taken as case examples to draw attention to the critical nature of personal gendered identities, which are mostly influenced by structural conditions related to a particular welfare regime (e.g. work and retirement policies) aiming to fix normative behaviours in later life. Nevertheless, the gendered habitus, as an expression of inner discourses, illustrates at the same time the nature of both constraints and freedom possessed by the respondents. We conclude by pointing out the importance of reflexive social approaches applied to the study of gender inequalities in later life.
The aim of this work was to assess the work ability, health status, disability and quality of life of working people of pre-retirement and retirement age, as well as to analyze factors affecting the ...ability to perform work in older age.
A cross-sectional pilot study was conducted in the Podkarpackie and Świętokrzyskie voivodeships, Poland, in randomly selected workplaces of intellectual nature. It was carried out by means of direct interviews in the workplace of the surveyed people, using the
, a questionnaire based on the
, the
, the
, and the
(VAS). The criteria for inclusion were: age 55-75 years and informed consent to participate in the study. Overall, 201 complete questionnaires were included in the analysis. Demographic data is presented using descriptive statistics measurements. The logistic regression model was used to identify factors related to work ability.
The vast majority (69.66%) of employees performing intellectual work had moderate or poor work ability. The average level of general disability in the studied group was mild (20.65), and the quality of life was quite good (64.73). A significant problem among the surveyed people was a quite high average level of pain (VAS = 3.99), the occurrence of depression (73.63%), as well as musculoskeletal (64.18%) and cardiovascular diseases (52.24%). The most important factor contributing to a better work ability was the adaptation of the workplace to functional and healthrelated needs (OR = 7.79). Psychological well-being (OR = 1.12), cognitive performance (OR = 0.97) and a smaller number of chronic diseases (OR = 0.58) were also important factors.
Preparation of elderly people for professional activity should be conducted in 2 different ways, i.e., by means of education and implementation of an active, healthy lifestyle, and increasing control over one's own health and factors determining it, as well as by the proper organization of working space, and quick access to treatment and rehabilitation, especially in the case of musculoskeletal and cardiovascular diseases. Int J Occup Med Environ Health. 2021;34(1):69-85.
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