Determinants for the transition from work into retirement in Europe

Abstract

We use the labor force ad hoc module "transition from work into retirement" to analyze the link between individual as well as pension system characteristics and planned retirement age within the European Union. We find that timing of retirement is correlated between partners who are, already at the stage of retirement planning. In richer countries of the EU15, standard retirement age seems to have a larger effect on planned retirement age than in poorer EU15 states or in new EU member states. The effect of pension wealth is largest in the new EU member states and smallest in rich EU15 countries. Furthermore, industry and occupation effects differ by country type.JEL codes: C21; J22; J26

Institutional and socio-economic drivers of work-to-retirement trajectories in the Netherlands

“…In addition, higher education has been found to be related to better health at later age (Leopold and Engelhardt 2011), while the higher educated find better opportunities for employment and re-employment in their late careers (Schuring et al 2013). Henkens and Kalmijn's (2006) findings that workers in higher non-manual positions are less likely to exit early, and Riedel, Hofer and Wögerbauer's (2015) results that those employed in personal services plan later retirement, also fit this pattern.…”

“…The size of the firm might matter, as larger companies often have had better coverage and enforcement of collective agreements which give better access to early retirement schemes (Naschold and De Vroom 1994). Riedel, Hofer and Wögerbauer (2015) found that employees in larger firms were more likely to at least plan for earlier retirement than those in smaller companies.…”

“…Studies have confirmed that the self-employed are less likely to exit the labour market early, both in the Netherlands as well as from a cross-national perspective (Debrand and Sirven 2009; Engelhardt 2012; Henkens and Kalmijn 2006; Schils 2008). Studies have also found that in agriculture, where self-employment is prevalent, the incidence of late retirement is more common (Henkens and Kalmijn 2006; Riedel, Hofer and Wögerbauer 2015). It is possible that many self-employed people also voluntarily choose to retire late, but because of the low coverage of entitlements there is still a high probability of involuntariness.…”

“…Many studies on the socio-economic drivers of retirement behaviour have focused on retirement or exit as a single transition, event or state (Debrand and Sirven 2009; Engelhardt 2012; Schils 2008; Visser et al 2016 b ) or on retirement as an intention or preference (Dal Bianco, Trevisan and Weber 2015; Riedel, Hofer and Wögerbauer 2015; Solem et al 2016; Van Dam, Van Der Vorst and Van Der Heijden 2009). However, the consensus in contemporary research is that retirement is hardly ever a simple and single transition from employment to an old-age pension, but rather a process stretching out over several years (Shultz and Wang 2011: 170), including a set of changes in work- and labour market-related behaviour (Denton and Spencer 2009; Moen 2003).…”

Successful yet insufficient: German policies for higher employment rates among older age groups

“…As in most countries, net replacement rates in Germany will decline, possibly with positive effects on older workers' labour supply. For example, Riedel and Hofer (2013) refer to several studies showing positive effects of generous pensions on early retirement, whereas additional retirement effects from eligibility to occupational pensions and private pensions can be detected (Beier Sørensen 2014). Private pensions have spread relatively slowly in Germany, and other forms of savings currently yield low returns due to low interest rates and are mainly used by higher-status groups.…”