The Impact of an Increase in the Legal Retirement Age on the Effective Retirement Age

Bernal, Noelia; Vermeulen, Frédéric

doi:10.1007/s10645-014-9226-8

Cited by 11 publications

(13 citation statements)

References 39 publications

(38 reference statements)

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“…In addition to standard statistical analysis, there have also been attempts to apply other less common tools to describe the determinants of effective retirement age. One example is the study by Bernal and Vermeulen (2014), in which they make use of dynamic programming to address the impact of an increase in the statutory retirement age on the effective retirement age.…”

Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

“…The results of the former are usually more precise and accurate and reflect the specifics and characteristics of the analysed country's population. Particularly interesting studies that focus on a single country are (Montalto, et al, 2000) and (Blanchett, 2018) for the US; (Banks, et al, 2007) for the United Kingdom; (Bernal & Vermeulen, 2014) and (Vermeer, 2016) for the Netherlands; (Euwals, et al, 2010) for Denmark. The outcomes of cross-country analyses are generally more useful in identifying general trends and making international comparisons, although this kind of study tends to underestimate country-specific factors such as culture, social norms and attitudes towards work and retirements.…”

Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

“…Expected changes in retirement age (and also in labour supply) caused by changes in the statutory retirement age were investigated by Gustman and Steinmeier (1985) and Fields and Mitchell (1984): the results of these studies show that a rise of the statutory retirement age by two years increases the effective retirement age by about two months. Bernal and Vermeulen (2014) analysed the impact of an increase in the legal retirement age on the effective retirement age under different scenarios. They found that a sudden rise of statutory retirement age is significantly less effective than a gradual change that is spread over time.…”

Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

“…Generally, people tend to retire earlier than expected (Blanchett, 2018). It is also well known that in many developed countries there is a substantial gap between the official retirement age and the effective retirement age (Bernal & Vermeulen, 2014).…”

Section: Effective and Official Retirement Age In Oecd Countriesmentioning

confidence: 99%

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The Determinants of Effective Retirement Age – A Cross-Country Analysis

Jedynak¹

2019

Proceedings of the 11th Economics &Amp; Finance Conference, Rome

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To restore the long term sustainability of pension schemes and improve pension benefits adequacy in recent years many countries have raised the statutory retirement age. According to official reports, however, there is a significant difference between statutory and actual (effective) retirement age. While in some countries the former is considerably higher than the latter, in other it is quite the opposite. Thus a question which underlays this research appears: what determines the effective retirement age? To answer these questions the study objectives are 1) to identify and discuss potential factors affecting retirement decisions; 2) to estimate the impact of the identified factors on the decision to retire. The empirical analysis in the study is based on the crosscountry analysis of 34 OECD countries. To assess the impact of different variables on the effective retirement age we use a multivariate regression model. The model considers variables related to general economic conditions, health, and pension system architecture. Moreover, we also add to a model a dummy variable which informs whether a country is a European one or not. To fit the model and eliminate the highly correlated independent variables we apply the stepwise regression with forward selection. Taking into account the persistent gender differences, we calculate two separate models for men and women. The results of our regression model show that the most significant influence on the retirement age has: perceived health status, life expectancy and the employment rate of people aged 60 to 64. Furthermore, we observe a noticeable impact of "being a European country" variable-simply being the European country leads to 3,76 lower retirement age for men and 2,78 for women. We also find that effective retirement age is positively and statistically significantly correlated with the relative poverty of the elderly, and negatively with old-age dependency ratio and replacement rate. There is also a strong, negative correlation between a dummy "being a European country" variable and effective retirement age. Interestingly, we find no evidence that variables related to pensioners' income (the level of GDP per capita or disposable incomes of people aged over 65 and average wages) affect the effective retirement age. As our model is not capable to fully explain the differences in effective retirement age in analysed countries, we believe that apart from the quantitative parameters regarding economic conditions; financial incentives and pension system architecture; and health and demographic that are considered in the model, also other, rather qualitative factors, influence retirement decisions. We suppose that among these factors are mainly attitudinal and behavioural

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Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

Section: Backgroundthe Literature Reviewmentioning

confidence: 99%

Section: Effective and Official Retirement Age In Oecd Countriesmentioning

confidence: 99%

See 2 more Smart Citations

The Determinants of Effective Retirement Age – A Cross-Country Analysis

Jedynak¹

2019

Proceedings of the 11th Economics &Amp; Finance Conference, Rome

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“…Many countries are confronted with rapid population ageing (Wheaton and Crimmins 2012;Bernal and Vermeulen 2014;Domonkos 2015;Lüthen 2016). In addition, the number of young people entering the labour market is declining (OECD 2006).…”

Section: Introductionmentioning

confidence: 99%

The causal influence of increasing the statutory retirement age on job satisfaction among older workers in the Netherlands

Groot

Pavlova

2021

Applied Economics

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Since 2013, the Netherlands has gradually increased the statutory retirement age. We use a regression discontinuity design to analyse the effect of the increase in retirement age on overall job satisfaction and satisfaction with the organisation's personnel policy. Date of birth was used as a sharp cut-off to assign workers to the intervention or comparison group. The increase had no effect on overall job satisfaction. An effect was only observed for satisfaction with the personnel policy in one of the groups analysed. Further, there was only a significant effect if the statutory retirement age was increased by seven months, but this relation was no longer significant when controlling for the difference in days between the date of birth and the cut-off.

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Defining organizational contributions to sustaining an ageing workforce: a bibliometric review

et al. 2019

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The ageing of populations worldwide has implications for workforces in developed countries and labour shortages have increasingly become a political concern. Governments in developed countries have responded by increasing the retirement age as a strategy for overcoming the fall in labour supply. Using bibliometric techniques, we reviewed 122 articles published between 1990 and 2018 to examine the effectiveness of the strategy in addressing the labour shortages and, in particular, to identify the factors that contribute positively to maintaining worker participation within an ageing workforce at an organizational level. The results identified five organizational factors that support continued participation: health, institutions, human resource management (HRM), human capital and technology tools. Employers will increasingly need to develop "age-friendly" workplaces and practices if they are to recruit and retain older workers.

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The Impact of an Increase in the Legal Retirement Age on the Effective Retirement Age

Cited by 11 publications

References 39 publications

The Determinants of Effective Retirement Age – A Cross-Country Analysis

The Determinants of Effective Retirement Age – A Cross-Country Analysis

The causal influence of increasing the statutory retirement age on job satisfaction among older workers in the Netherlands

Defining organizational contributions to sustaining an ageing workforce: a bibliometric review

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