Attitudes towards working in retirement: a latent class analysis of older workers’ motives

Abstract

One of the fastest growing labour market groups is working pensioners, meaning those who work past the statutory retirement age whilst receiving a pension. Previous research has investigated the motives of this group and found very heterogeneous reasons for employment in retirement. However, little is known about the expectations and preferred work arrangements of older workers regarding a potential post-retirement employment. Using data from the German survey transitions and old age potential, we explore older workers’ motives, preferences and expectations towards working in retirement. Results show that about half of the respondents plan to work in addition to receiving a pension; however, the share is higher amongst men and those with higher levels of education. The motives for staying in post-retirement employment vary as well: using latent class analysis, we find four distinct patterns of motives that can be classified as (1) financially-driven, (2) status-driven, (3) contact and fun-driven, as well as (4) generativity-driven, underlining the complexity of retirement decisions. Furthermore, preferences regarding arrangements when combining work and retirement are very heterogeneous. Whilst highly educated men want to work as self-employed, women and those with lower qualifications want to stay in their old jobs. Only small differences were found regarding preferred hours (about 17) and days per week (2.24). In summary, the results show that the rapidly growing group of working pensioners and their preferences should be seen as characterised by differences by those responsible for creating these post-retirement employment opportunities.

Motivational Drivers of Temporal Dynamics in Postretirement Work

“…The present article adds to previous knowledge on postretirement employment by showing that work-related motivational drivers predict not only the preference for ( Hess et al, 2021 ; van Solinge et al, 2021 ) and participation in ( Fasbender et al, 2016 ; Zhan et al, 2015 ) postretirement work, but also the extent to which retirees change their level of engagement over time. The finding that different motives have differential implications for changes in work extent improve our understanding of postretirement work in several important ways.…”

“…Research confirms this assumption and shows that financial motives are important for understanding why retirees continue to work in retirement, although it has been shown to be less prevalent than social and personal motives ( Dingemans & Henkens, 2014 ; Hansson et al, 2020 ; Mazumdar et al, 2020 ; Platts et al, 2021 ). The financial meaning of work is suggested to be a stronger predictor of postretirement employment among retirees with poor economic status ( Fasbender et al, 2016 ), and financial motives are related to a preference to work more hours in retirement ( Hess et al, 2021 ). Research on older workers further demonstrates that many part-time jobs are involuntary, that older workers often want to work more, and that financial strain is one of the main motivators to increase work hours ( Silver et al, 2019 ; Starace et al, 2015 ; Van Horn & Heidkamp, 2019 ).…”

“…Research has shown that retirees who value the social meaning of work, as well as those anticipating social loss in retirement, are more likely to plan for and take up postretirement work ( Fasbender et al, 2014 , 2016 ; van Solinge et al, 2021 ). However, working for social reasons does not necessarily translate into a desire to work more ( Hess et al, 2021 ; Mazumdar et al, 2020 ; Platts et al, 2021 ). Research suggests that work-based relationships often are integrated into personal networks, and that work-related personal ties are maintained after retirement ( Cozijnsen et al, 2010 ).…”

Social Media Network Analysis on Twitter Users Network to the Pension Plan Policy

“…As Zhao et al (2018) looked at the financial risks of pension plans, they revealed that risk assessment of the Pension Plan system is critical to avoid shocks to the demographic structure and economic transition in old age. In some countries, there is a motive for post-retirement workers to continue working, which Hess et al (2021) describe as financially driven, status-driven, contact and pleasure-driven, and generatively driven. Furthermore, according to a study by Tao (2017) in Germany, the current pension system reform has become much more gender-neutral, 'feminine' and 'family-friendly, by balancing the pension rights of both sexes.…”

What drives older adults to continue working after official retirement age?

“…Rising life expectancy and ageing baby boomers, potential strains on social security funds, pension reforms and labour-market changes are generating growing interest in the potential employment of older adult workers and retirees. Labour-market scholars study the prevalence and circumstances of employment in old age, adding relevant knowledge about older workers' expectations of working in retirement (Hess et al, 2021). As against the conventional perception and experience of retirement as the point at which one quits the labour market for good, many scholars today recommend that it be conceptualised as one stage in a gradual process (Bordia et al, 2020;Hasselhorn, 2020).…”