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Alan L. Gustman and Thomas L. Steinmeier

This paper advances the specification and estimation of econometric models of retirement and saving in two earner families. The complications introduced by the interaction…

Abstract

This paper advances the specification and estimation of econometric models of retirement and saving in two earner families. The complications introduced by the interaction of retirement decisions by husbands and wives have led researchers to adopt a number of simplifications. Our analysis relaxes these restrictions. The model includes three labor market states, full-time work, partial retirement, and full retirement; reverse flows from states of lesser to greater work; an extended choice set created when spouses make independent retirement decisions; heterogeneity in time preference; varying taste parameters for full-time and part-time work; and the possibility of changes in preferences after retirement.

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Factors Affecting Worker Well-being: The Impact of Change in the Labor Market
Type: Book
ISBN: 978-1-78441-150-3

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Article

Karen Martin Gibler, James R. Lumpkin and George P. Moschis

Factors such as retirement and declining health may trigger older Americans to move into retirement housing. Most mature consumers make this decision in consultation with…

Abstract

Factors such as retirement and declining health may trigger older Americans to move into retirement housing. Most mature consumers make this decision in consultation with their family. Understanding the timing and decision‐making process is necessary to properly position and promote retirement housing. A national survey of retirement housing residents found that most moves were prompted by financial considerations, retirement, and health problems. Although most seniors made the final decision to move themselves, children and physicians were influencers. Thus, retirement housing must be promoted to family members and health care workers as well as potential residents.

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Journal of Consumer Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 0736-3761

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Article

A. John Maule

Following a brief review of research on special early retirement,provides a summary of a recent extensive study by Maule, Cliff andTaylor (in press) and re‐interprets the…

Abstract

Following a brief review of research on special early retirement, provides a summary of a recent extensive study by Maule, Cliff and Taylor (in press) and re‐interprets the findings of this study in the context of the development of effective early retirement schemes. Discusses effectiveness in terms of the factors which are important in the decision and how these should be presented, the worries and concerns which people have about early retirement and how these should be addressed, ways of helping people make the decision and the factors at the point of decision that are likely to affect the quality of life in retirement. Considers of the ways in which each of these factors affect different groups of workers and the possibility that retirement schemes can be targeted to be differentially attractive to different groups.

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Personnel Review, vol. 24 no. 8
Type: Research Article
ISSN: 0048-3486

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Article

Silvia Jordan and Corinna Treisch

Research to date has reported ambiguous results on the influence of tax concessions on retirement savings decisions. The purpose of this paper is to investigate the…

Abstract

Purpose

Research to date has reported ambiguous results on the influence of tax concessions on retirement savings decisions. The purpose of this paper is to investigate the influence of tax concessions on private retirement investment decisions by analyzing actual retirement decision processes and the rationales behind these decisions in‐depth.

Design/methodology/approach

Qualitative semi‐structured interviews on actual retirement savings decisions were conducted with private investors (17) and their respective bank advisors (5). Decision‐making rationales are analysed by means of semantic and causal coding of verbal data as well as by highlighting the complexities of decision processes represented in individual investment narratives.

Findings

Results indicate that taxes do not matter much, neither during the decision to join a private retirement plan, nor when choosing a specific investment product. Financial planning for retirement consists of saving disposable income instead of the required savings premium and choosing a secure type of investment which yields more than a savings account. Savers do not base their decisions on calculating and comparing rates of return or tax benefits. Instead, comparatively unqualified relatives as well as bank advisors and the desire for trust and security are of major relevance.

Research limitations/implications

The generalization of results is limited in so far as they refer to a relatively small interview sample. The study shall thus prompt further research that takes the decision‐making context and the interrelation between several context factors systematically into account.

Originality/value

The study is of value in that it highlights the difficulties private investors' experience when making actual – rather than hypothetical – retirement savings decisions and the rationales behind seemingly “imperfect” decisions. It shows that retirement savings decisions are heavily linked with the social decision‐making context. These results are closely linked to the recent debate on “responsibilization”, critical perspectives on the tendency of states to hold individuals increasingly accountable for aspects of market governance and social security.

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Qualitative Research in Financial Markets, vol. 2 no. 3
Type: Research Article
ISSN: 1755-4179

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Article

Catherine Rickwood and Lesley White

This purpose of this paper is to respond to calls for further research into consumer pre‐purchase decision‐making, and investigate the factors that cause a customer to…

Abstract

Purpose

This purpose of this paper is to respond to calls for further research into consumer pre‐purchase decision‐making, and investigate the factors that cause a customer to make a decision to save for retirement.

Design/methodology/approach

Exploratory research using eight focus groups was undertaken in Sydney, Australia with a total of 55 participants. The data were analysed using the approach suggested by Cresswell and includes coding into chunks, development of themes, interpreting, and validating findings.

Findings

Three key findings emerged from the research. First, there are certain internal, external, and risk factors that have a major impact on propensity to save for retirement. These are: involvement level, motivation, needs and wants, family influence, marketer influence, competitive options, financial risk, functional risk, and psychological risk. Second, no clear and universal gender differences in the pre‐purchase decision‐making process emerged during the focus group discussions. Finally, alternative options for spending and addressing risk negatively influence pre‐purchase decision‐making and therefore the desire or ability to save.

Research limitations/implications

This study is constrained by its exploratory nature. Consequently, future research could utilise quantitative methodology to confirm findings and allow generalisation of results. Also, a study incorporating ethnicity would add breadth to the findings.

Practical implications

Managers and policy makers benefit from understanding that marriage and turning 40 years old are highly influential to a consumer's likelihood to save for their retirement. This information is particularly useful for the development of marketing and communication campaigns.

Originality/value

This is the first exploratory study of pre‐purchase decision‐making which researches the triggers for buying complex financial services associated with saving for retirement.

Details

Journal of Services Marketing, vol. 23 no. 3
Type: Research Article
ISSN: 0887-6045

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Article

Tchai Tavor and Sharon Garyn-Tal

This research aims to examine the decision-making process involved in saving for retirement and compare it with decision-making processes regarding other financial…

Abstract

Purpose

This research aims to examine the decision-making process involved in saving for retirement and compare it with decision-making processes regarding other financial products (such as loans and savings plans) as well as real products (such as a car or a home).

Design/methodology/approach

This research is based on the distribution of 107 questionnaires. The questionnaire is composed of two parts: questions examining and focusing on the individual’s decision-making process and questions regarding socioeconomic factors. The average level of risk tolerance is calculated for each respondent with respect to the first four chapters. (These chapters include buying a car or a home, opening a savings plan and taking a loan). Afterward, the consistency (rationality) of the respondents is examined with regard to their decision-making concerning retirement savings plans. Then, an econometric model is used to further test the consistency of the respondents.

Findings

The results suggest that the level of risk tolerance associated with a retirement savings plan is consistent with that associated with the other financial products, but not with the real products. Majority of the respondents demonstrate high risk tolerance with respect to retirement savings, and their decision-making process is similar to a random thinking process. The level of deliberation and information-gathering regarding retirement savings is the lowest when compared with the other financial and real products examined in this paper. Majority of the respondents are less risk-tolerant toward the other financial and real products.

Originality/value

In this research, the authors examine how different individuals with different characteristics get different decisions about their personal retirement savings. The authors also examine these decisions’ deviation from the rational model, and compare it with decision-making processes regarding other financial products as well as real products.

Details

Studies in Economics and Finance, vol. 33 no. 4
Type: Research Article
ISSN: 1086-7376

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Article

James W. Walker and Karl F. Price

Retirement: is it the ‘golden years’ or is it relegation to the ‘human scrapheap’? In reality, it may be either, depending on a multitude of factors interrelated in a…

Abstract

Retirement: is it the ‘golden years’ or is it relegation to the ‘human scrapheap’? In reality, it may be either, depending on a multitude of factors interrelated in a complex process. This paper presents a model that describes this process and explains the retirement decision in behavioural terms. The model also shows the interaction between environmental, institutional and individual variables; their impact on retirement; and the impact of retirement upon them.

Details

Personnel Review, vol. 5 no. 1
Type: Research Article
ISSN: 0048-3486

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Article

Amy M. Warren and E. Kevin Kelloway

The purpose of this study is to use the theory of planned behavior to test a structural model of retirement timing intentions of older workers in Canada following the…

Abstract

Purpose

The purpose of this study is to use the theory of planned behavior to test a structural model of retirement timing intentions of older workers in Canada following the abolishment of mandatory retirement.

Design/methodology/approach

A survey of 281 working individuals was conducted in order to test a model of retirement timing.

Findings

The model was a good fit to the data. Attitudes toward people at work predicted people's attitudes toward work. Attitudes toward work predicted age and life perceptions. Age and life perceptions predicted control. Control predicted social/policy influences, and finally social/policy influences predicted planned retirement age.

Research limitations/implications

The main limitations of this study were that the authors tested a model based on self report data. Furthermore the data were correlational therefore they cannot make causal inferences.

Practical implications

Work attitudes predict people's own perceptions of their life and age. And these are predictive of norms. Organizations need to consider people's perceptions of their work, if they are to retain workers past the normal retirement age. Implementing work practices/policies, e.g. flexible work, become key considerations for these organizations.

Originality/value

The authors now have empirical support for the contention that norms are important for investigating the short term effects of lifting mandatory retirement, but also when considering the long term effects that changing mandatory retirement policies may have on individual's retirement timing. Furthermore, they have a more comprehensive model of retirement timing.

Details

International Journal of Manpower, vol. 31 no. 3
Type: Research Article
ISSN: 0143-7720

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Article

Ilias Livanos and Imanol Nuñez

The purpose of this paper is to investigate how precarious conditions at work affect older workers’ decision about their planned age of retirement.

Abstract

Purpose

The purpose of this paper is to investigate how precarious conditions at work affect older workers’ decision about their planned age of retirement.

Design/methodology/approach

Different theoretical approaches on the decision to retire are investigated in order to ascertain whether precarious employment extends, or not, one’s working life. A rich data set including over 250,000 old workers across EU-15 is built for the empirical investigation.

Findings

The results suggest that old workers involved in precarious employment are planning to retire later than those who are engaged with more stable and regular jobs. However, lack of training as well as poor health conditions at work are found to be associated with early retirement.

Originality/value

The analysis conceptually associates two key features of modern labour markets (precariousness and retirement) and empirically provides some evidence of the effect of poor employment conditions on the decision to retire.

Details

Personnel Review, vol. 46 no. 8
Type: Research Article
ISSN: 0048-3486

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Article

Chanjira Pengcharoen and Kenneth S. Shultz

Population aging, and changes in labor force participation among older adults, will have tremendous impacts on the aging workforce. Thus it is imperative that the factors…

Abstract

Purpose

Population aging, and changes in labor force participation among older adults, will have tremendous impacts on the aging workforce. Thus it is imperative that the factors that influence whether older workers will continue in their career employment, engage in bridge employment, or fully retire, should be understood better. This paper aims to focus on these issues.

Design/methodology/approach

In the present study longitudinal data for 2,869 older workers from the Health and Retirement Study (HRS) data set in the USA were used to examine the influence of demographic (e.g. income), nonwork related factors (e.g. marital satisfaction), and work related factors (e.g. job involvement) on late‐life employment decisions over a ten year period from 1992 to 2002.

Findings

The results indicate a wide variety of factors impact employment decisions later in life. Specifically, it was found that work related factors of job involvement and schedule flexibility, as well as the nonwork related factors of certainty of retirement plans, attitudes toward retirement, and job seeking self‐efficacy all distinguished the various employment statuses (e.g. completely retired, partly retirement, and not retired at all) of older workers over a ten year period.

Originality/value

This study shows that both individuals and organizations need to examine a wide variety of factors when examining bridge employment decisions at the end of workers' careers. While most studies of bridge employment use cross‐sectional data, this paper uses longitudinal data to examine actual bridge employment decisions, rather that prospective desires or potentially faulty after‐the‐fact retrospective accounts.

Details

International Journal of Manpower, vol. 31 no. 3
Type: Research Article
ISSN: 0143-7720

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