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1 – 10 of over 17000European welfare states, including Finland, have recently introduced reforms that aim to delay the average timing of retirement. The degree of success of these reforms will depend…
Abstract
Purpose
European welfare states, including Finland, have recently introduced reforms that aim to delay the average timing of retirement. The degree of success of these reforms will depend on future institutional and societal developments that influence retirement timing. The purpose of this paper is to identify such scenarios in the Finnish context.
Design/methodology/approach
The study employs the Delphi method by interviewing anonymous experts from a variety of relevant organisations and fields in Finland, then sending them a scaled on-line questionnaire from the initial findings to elicit views on the likelihood of different scenarios influencing retirement timing over the next 20 years.
Findings
While the experts perceived that a raised state pension age and a removal of early retirement options will inevitably delay retirement on average, multiple scenarios were believe to hinder this trend. These included domestic elderly care becoming more common, technology-induced restructuring of labour markets and shortening working weeks, all of which were associated with widening socioeconomic inequalities in retirement timing. The predicted inequalities were attributed to a polarisation concerning older workers’ abilities to extend their careers and to plan their retirement. The planned mass privatisation of health and social services in Finland was perceived to accelerate this outcome.
Practical implications
The study suggests that a significant policy challenge in face of upcoming societal trends is to make delayed retirement a more equally viable option.
Originality/value
This paper demonstrates the usefulness of scenario building for anticipating possible developments that may influence the success of policies aimed at delaying retirement.
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Dieuwke Zwier, Marleen Damman and Swenne G. Van den Heuvel
Previous research has shown that self-employed workers are more likely than employees to retire late or to be uncertain about retirement timing. However, little is known about the…
Abstract
Purpose
Previous research has shown that self-employed workers are more likely than employees to retire late or to be uncertain about retirement timing. However, little is known about the underlying mechanisms. This study aims to fill this gap, by focusing on the explanatory role of various job characteristics – flexibility, autonomy, skills-job match and job security – for explaining differences in retirement preferences between the solo self-employed and employees.
Design/methodology/approach
Data were used of 8,325 employees and 663 solo self-employed respondents (age 45–64) in the Netherlands, who participated in 2016 in the Study on Transitions in Employment, Ability, and Motivation (STREAM). The outcome variable distinguished between early, on-time, late and uncertain retirement preferences. Multinomial logistic regression models were estimated, and mediation was tested using the Karlson-Holm-Breen (KHB) method.
Findings
The solo self-employed are more likely than employees to prefer late retirement (vs “on-time”) and to be uncertain about their preferred retirement age. Job characteristics mediate 21% of the relationship between solo self-employment and late retirement preferences: the self-employed experience more possibilities than employees to work from home and to choose their own working times, which partly explains why they prefer to retire late.
Originality/value
In discussions about retirement, often reference is made to differences in retirement savings and retirement regulations between the solo self-employed and employees. The current study shows that differences in job characteristics also partly explain the relatively late preferred retirement timing of solo self-employed workers.
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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 abolishment…
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.
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Yeuk Mui May Tam, Kam Wah Chan and Ka Man Lo
Relatively few studies about retirement transition examine economies, where a public pension system is absent. This paper aims to fill this gap in the literature.
Abstract
Purpose
Relatively few studies about retirement transition examine economies, where a public pension system is absent. This paper aims to fill this gap in the literature.
Design/methodology/approach
The present study draws on the stratification and risk society approach, as well as results from unstructured interviews with 12 Chinese in Hong Kong.
Findings
The analyses show that the retirement transition involves moving between different forms of wage work and non-work status. These moves were undertaken because of not only financial needs but also a strong desire to be a financially self-reliant and intrinsic commitment to employment. The authors argue that the desire and commitment to employment are shaped by the underdeveloped pension system, practical orientation towards traditional Chinese filial piety norms and personal work history.
Research limitations/implications
The current research covers only a very small sample and uses retrospective interviewing instead of a larger and/or representative sample using prospective panel interview. Nevertheless, the research carries theoretical and policy implications of the study on retirement transition and protection.
Originality/value
Few local studies track retirement transitions in the way similar to the current studies. Existing studies are mostly about advanced Anglo-Saxon economies with a long history of public pension, albeit reformed in recent year, in place. The current study adds to the general literature on retirement studies.
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Autumn Behringer, Carolyn C. Perrucci and Richard Hogan
To what extent do couples expect to retire together? What distinguishes “atypical congruent” couples who expect to retire separately? What distinguishes “non-congruent” couples…
Abstract
To what extent do couples expect to retire together? What distinguishes “atypical congruent” couples who expect to retire separately? What distinguishes “non-congruent” couples who disagree on retirement plans? Using U.S. Health and Retirement Study (HRS) data, we find that “Atypical Congruent” (separate retirement) couples have shorter marriages, larger age differences, unequal decision-making, dependent children, and pension plans for both husband and wife. They are also more frequently interracial or minority couples. “Non-Congruent” couples (who disagree on retirement plans) are distinguished by wife's earnings and husband's occupational status and work schedule.
Mairead Cahill, Rose Galvin and Judith Pettigrew
Retirement is a complex process that can impact daily lives and relationships. While some gender differences in academic retirement experiences have been noted, few studies have…
Abstract
Purpose
Retirement is a complex process that can impact daily lives and relationships. While some gender differences in academic retirement experiences have been noted, few studies have focused exclusively on women academics’ retirement experiences. This follow-up study aims to explore the meaning of retirement and its impact on retired women academics' daily lives and relationships over time from an occupational perspective.
Design/methodology/approach
Using a qualitative, longitudinal descriptive design, semi-structured interviews (n = 11) were completed with women retirees from one university and an academically linked university-level, college of education and liberal arts, in the Republic of Ireland (n = 11). This paper presents the findings of follow-up interviews conducted one year later (n = 10). Data were analysed using Braun and Clarke’s six-phase thematic analysis. A longitudinal analysis was then undertaken using a recurrent cross-sectional approach (Grossoehme and Lipstein, 2016) to enable discussion of changes and continuity that had occurred over time in their daily lives.
Findings
The analysis yielded four themes: (i) continuing to navigate occupational identity challenges, (ii) structuring free time, (iii) appreciating health and well-being and (iv) continuing meaningful professional relationships and activities. Participants described on-going occupational identity challenges linked with contextual factors and experiences of occupational injustices of lack of recognition, lack of inclusion and a lack of choice to continue working in their paid academic employment.
Originality/value
These findings suggest that occupational therapists advocate for older adults, so that meaningful choices in retirement timing can be offered to all equally and so that older people are acknowledged for their contributions to society.
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Danny M. Ervin, Larry H. Filer and Joseph C. Smolira
This study evaluates the success of the monthly withdrawal of funds from hypothetical retirement portfolios for the period January 1930 to December 2001. The objective of this…
Abstract
This study evaluates the success of the monthly withdrawal of funds from hypothetical retirement portfolios for the period January 1930 to December 2001. The objective of this research is to provide an empirical examination of the historical effect of global diversification on the withdrawal of funds from a retirement portfolio. We compare portfolios consisting of U.S. stocks and U.S. corporate bonds, and portfolios consisting of global stocks and U.S. corporate bonds. We examine both portfolio compositions using a variety of portfolio weights, fund withdrawal rates, and fund withdrawal periods. The results of the study indicate that, in general, portfolios with a higher equity portion had a greater likelihood of sustaining a given number of withdrawals over this time. Additionally, for much of the 1930 to 2001 period, including international stocks in a withdrawal portfolio decreased the likelihood the withdrawals lasted for a given period. However, the inclusion of international stocks does increase the terminal value of retirement portfolios after withdrawals during the latter part of the period under study. The results of this study can be used for retirement planning since it provides a historical perspective on the success of various withdrawal rates. The results can also be used to determine the value of the portfolio an individual needs at retirement to fund a given level of withdrawals. This can assist in the retirement timing decision.
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Liam Foster, Sam Wai Kam Yu and Ruby Chui Man Chau
This article aims to link discussions of the role of earnings-related pension measures with time in Hong Kong (HK) and the United Kingdom (UK). It presents a new conceptual “time…
Abstract
Purpose
This article aims to link discussions of the role of earnings-related pension measures with time in Hong Kong (HK) and the United Kingdom (UK). It presents a new conceptual “time-based framework” to explore two related types of government response to the way people accumulate pension incomes through participation in paid work. The first is to consider governments' perceptions of appropriate time in work and retirement. The second is to consider how governments use pension measures to influence the connection between the amount of time people spend in paid work and retirement.
Design/methodology/approach
This is a conceptual paper. The time-based framework is developed using literature concerning discretionary time and the social construction of time. To explore the empirical significance of this framework, the authors discuss how it can be applied to the analysis of earnings-related pension measures in HK and the UK.
Findings
The evidence generated from the discussion of the earnings-related pension measures in HK and the UK shows that pension policies can serve both as a financial and time instrument. At the same time as influencing the connection between the amount of time people spend in paid work and the pensions they can accumulate, pension policies can be used to convey the government's views on important time issues, namely the appropriate length of time in work and retirement, and the relative value of the time spent in paid work and providing informal care.
Originality/value
A new framework is developed to explore the connection between the studies of earnings-related pension measures and time, which is an understudied area.
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Underpinned by the attraction-selection-attrition theory, this paper aims to investigate the impact of entrepreneurship on an individual’s expected retirement age and explore how…
Abstract
Purpose
Underpinned by the attraction-selection-attrition theory, this paper aims to investigate the impact of entrepreneurship on an individual’s expected retirement age and explore how job satisfaction and expected retirement financial insufficiency (ERFI) as key factors can explain that.
Design/methodology/approach
A framework including direct and indirect relationships among key factors is empirically tested by using a pooled data sets consists of 13,420 individuals from the UK Household Longitudinal Survey, the analysis uses the entropy balance matching method and combined with quasi-bayesian monte Carlo method and hierarchy regressions to enhance the robustness of results.
Findings
The research finds entrepreneurs plan to retire later than organizational employees. In addition, a strong mediating impact of job satisfaction and moderating role of ERFI on the relationship between entrepreneurship and expected retirement age is verified.
Originality/value
The theoretical perspective and findings offer a novel insight into the research on entrepreneurs’ decision of retirement. The findings suggest entrepreneurs as crucial policy stakeholders contribute to retirement deferment should be valued. Effective interventions could be delicately designed in the future to unleash the potential of entrepreneurship in dealing with aging challenges.
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Alan L. Gustman and Thomas L. Steinmeier
Using data from the Health and Retirement Study, we examine behavioral responses to a new generation of retirement policies that on average are actuarially neutral. Although many…
Abstract
Using data from the Health and Retirement Study, we examine behavioral responses to a new generation of retirement policies that on average are actuarially neutral. Although many conventional models predict that actuarially neutral policies will not affect retirement behavior, our model allows those with high-time preference rates to find that the promise of an actuarially fair increase in future rewards does not balance the loss from foregone current benefits. Thus together with liquidity constraints facing those with high-time preference, we find that actuarially neutral policies do affect retirement behavior. One such policy follows on the elimination of the Social Security earnings test for those over normal retirement age, and would eliminate the earnings test between early and normal retirement age. Another of these policies would increase the ages of benefit entitlement. Still another such policy emerges from a central focus of the past few years on the adoption of personal accounts. Although Social Security benefits are currently paid in the form of an annuity, benefits from either defined benefit plans or from personal accounts may be made available as an annuity or as a lump sum of equivalent actuarial value. A related policy choice between actuarially equivalent benefits emerges on the pension side. There has been discussion of relaxing the current IRS prohibition against paying a pension benefit when a person remains at work, instead allowing partial pension benefits to be paid to those who partially retire on a job.