When They're Sixty-Four: Peer Effects and the Timing of Retirement

Brown, Kristine M.; Laschever, Ron A.

doi:10.2139/ssrn.1573757

Cited by 9 publications

(8 citation statements)

References 21 publications

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“…Also, teachers that are eligible to retire (as determined by age) may begin teaching in a particular district in year t + 1 and these individuals are not differentiated from incumbent teachers with the same characteristics in this measure. However despite the inability to track individuals, the empirical average rate of retirement using this measure is 9 percent in Los Angeles Unified, which is in line with the retirement rate calculated by Brown and Laschever (2012) using a different data set of LA Unified teachers that indicated actual retirement events.…”

Section: Background and Datasupporting

confidence: 72%

The Tradeoff Between Health and Wealth in Retirement Decisions

Brown

2014

SSRN Journal

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In the United States, because access to health insurance is tied to employment, the availability of retiree health insurance interacts with post-retirement income to shape the retirement decision. This paper uses administrative data from the California Department of Education to estimate the rate at which individuals' trade off post-retirement health insurance benefits for a longer retirement and for retirement income benefits. The sensitivity of retirement to the return to working in terms of post-retirement health insurance is estimated. This estimate is then compared to the sensitivity of retirement to pension generosity in order to determine the implied rate at which individuals substitute between health insurance and pension benefits. The two estimation methods used leverage plausibly exogenous benefit variation driven by the sharp features of the retiree benefit programs. The results imply that individuals will delay retirement to become eligible for retiree health benefits, but that the effect is small relative to the effect of pension benefits on retirement timing.

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Section: Background and Datasupporting

confidence: 72%

The Tradeoff Between Health and Wealth in Retirement Decisions

Brown

2014

SSRN Journal

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“…Lieber and Skimmyhorn (2018) on the other hand find no peer effects among U.S. Army soldiers in their retirement savings. Brown and Laschever (2012) show that teachers are susceptible to the retirement age of their direct peers at the workplace. Hamman et al (2016) document peer effects on the individual retirement timing for workers in German medium and large private establishments.…”

Section: Introductionmentioning

confidence: 99%

Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age

2019

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Using a specifically designed survey, we investigate the role of the social network in shaping workers' retirement preferences. We find that the preferred retirement age is influenced by the advice and retirement decisions of coworkers, family, and friends. Workers value in particular the advice of their spouse and children and take their personal circumstances into consideration. Responses to vignette questions imply that workers increase their preferred retirement age with on average 3 months in response to a 1 year increase in the retirement age of coworkers, family and friends. Workers are particularly willing to postpone retirement if the planned retirement age was below the statutory retirement age. The results suggest that advice of the social environment and factors like 'social embeddedness' or social norms likely play a role when it comes to retirement decision-making.

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“…Previous research indicates that social influences are important in shaping the health behavior of teenagers, including alcohol consumption (Kremer and Levy, 2008), smoking (Powell et al, 2005;Gaviria and Raphael, 2001), substance abuse (Lundborg, 2006;Clark and Loheac, 2007) and sexual initiation (Fletcher, 2007). There is also evidence on the importance of network effects in facilitating participation in welfare programs (Bertrand et al, 2000), utilization of health services (Deri, 2005) as well as in retirement and saving decisions (Duflo andSaez, 2002, 2003;Brown and Laschever, 2011). Most related to our context is the finding from the Health and Retirement Study that social interactions are an important determinant of the health insurance choices of the elderly (Beiseitov et al, 2004).…”

Section: Robustness Checksmentioning

confidence: 93%