Expectations and Realization of Joint Retirement Among Dual-Worker Couples

Abstract

Using data from the first seven waves of the Health and Retirement Study (1992 to 2004), the authors examined the extent to which joint retirement expectations were realized, the role of couple-level agreement in facilitating joint retirement, whether husbands' or wives' expectations were more likely to be realized in cases of disagreement, and factors associated with the realization of expectations. The results indicate that couples expecting joint retirement were over three times more likely to retire jointly than couples in which neither spouse expected to do so. However, the probability of joint retirement did not differ between couples in which both spouses expected to retire jointly and those in which only one spouse expected to do so. Wives' and husbands' expectations were equally strong predictors of joint retirement, and retirement age, health, spouses' relative earnings, and discussions of retirement were related to the likelihood of realizing joint retirement expectations.Retirement has typically been viewed as an event experienced by men at the end of their careers. As such, most families experience only one retirement -that of the husband and breadwinner. However, this simple characterization of retirement is increasingly inappropriate as long-term increases in women's labor force participation across the life course have resulted in more couples with two retirements to coordinate. Joint, or synchronized, retirement of husband and wife has become a salient option for dual-worker couples and several studies have examined the trends, correlates, and consequences of joint retirement (Blau 1998; Gustman and To date, however, little attention has been paid to couples' initial expectations regarding joint retirement and the extent to which these expectations are realized. As a result, there are several missing pieces in our understanding of joint retirement. We do not know whether it is an expected or planned retirement option, whether expectations about joint retirement are shared between spouses, and what factors are related to the realization of expectations. An increasing number of studies have examined relationships between retirement expectations and subsequent behavior at the individual level and conclude that expectations provide useful information for projecting future retirement outcomes (Anderson, Burkhauser and Quinn 1986;Bernheim 1987;Dwyer 2001). Do similar relationships hold for joint retirement? The relationship between expectations and behavior is more complex for joint retirement than at the individual level given the need to coordinate two retirements, each with its own institutionalized schedules. We are not aware of any existing research on the congruence between initial expectations regarding joint retirement and subsequent behavior. This is an important limitation given the increasing number of dual-worker couples approaching retirement together.

Do Spouses Coordinate Their Work Exits? A Combined Survey and Register Analysis From Norway

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Retirement timing and grandparenthood: A population-based study on Sweden

“…Partner status is also linked to retirement decisions: non-married and divorced individuals tend to retire later (Hatch and Thompson 1992), and married individuals coordinate their retirement transitions with one another, especially if they are satisfied with their marriage (Reitzes, Mutran, and Fernandez 1998). Husbands tend to postpone retirement, as they are often older than their spouses, and wives tend to retire earlier (Ho and Raymo 2009). Moreover, caregiving roles are important in decision-making regarding retirement (Dentinger and Clarkberg 2002).…”

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“…In heterosexual couples, the woman is usually the younger spouse (Ho & Raymo, 2009;Szinovacz, 2002). The older spouse (the man) will face mandatory retirement once he reaches public pension age, leaving the burden of adapting individual retirement plans to the younger spouse (the woman).…”