Retaining older workers: The effect of phasedretirement on delaying early retirement

Abstract

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.

Working environment and work retention

“…In addition, several studies, based on combined survey and register data (2001-2007/2010) have analysed the causal effect of work place interventions on sickness absence and retirement behaviour, using either a difference-in-differences approach or fixed effect analysis (Midtsundstad, Hermansen et al, 2012;Midtsundstad, Nielsen et al, 2012;Hermansen, 2014;Hermansen, 2015;Hermansen & Midtsundstad, 2015;Midtsundstad & Nielsen, 2014;.…”

“…The study by Midtsundstad, Hermansen et al (2012) did not find any general effect on older workers retirement behaviour of being offered a retentions programme in the period 2001-2007, neither did separate analyses of the effect of such intervention on retirement behaviour and sickness absence in the municipality sector (Midtsundstad, Nielsen et al, 2012). Hermansen (2014), who studied the separate effect of individual retention measures, based om data from 2000-2010, however, found that older workers who were offered extra days off, had a reduced probability of drawing an AFP pension early (at age 62-63); although being offered reduced working hours with some wage compensation, did not have any effect (Hermansen, 2015). Furthermore, Hermansen & Midtsundstad (2015) found that being offered a retention bonus reduced the probability of drawing an AFP pension at age 62 and 63.…”

Partial Pensions as a Form of Flexible Retirement in the Eu Countries

“…0** ? [Hermansen 2015] Swedish national partial retirement scheme Hours gained due to increased part-time work instead of early exit outweigh hours lost due to people (who would have continued to work full time until pension age) working part time.…”

Luxembourg: harnessing skills for more inclusive growth

“…The need for flexible working time arrangements may stem from the caring obligations of older workers, if (Duell, 2015). Empirical evidence on the impact of reduced working hours on remaining in employment is mixed as part-time jobs may result in less training and less interesting job tasks (Hermansen, 2015;Earl and Taylor, 2015). Flexible work should be further developed and adapted to different sectors and life phases, as less standard working hours arrangements could have implications for communication and co-operation among employees and additional technology support could require new knowledge and training (OECD, 2015d).…”