Career Pathways into Retirement in the UK: Linking Older Women's Pasts to the Present

Understanding of how women's experiences in retirement are shaped by their pre‐retirement lives is limited. In this paper we utilize an innovative mix of measures to examine the link between career histories and expectations and experiences of retirement. Analysis of timeline data capturing the long working lives of a sample of older women identifies five different pathways into retirement. We explore these trajectories in detail to determine how they are shaped and their links to different outcomes in later life. The analysis shows how different career histories unfold and how they shape expectations and experiences of retirement. Long, professional career pathways leave women feeling enabled in retirement, women following more fragmented pathways are more constrained, and some trajectories, including pathways involving transitions into professional careers in later life, can leave older women financially and emotionally vulnerable in older age.     

Transitions to part-time work at older ages: the case of people with disabilities in Europe

This paper analyses the labour-force transitions of older workers with disabilities in general, particularly workers’ transitions to and from part-time employment within a European context. Using the two first waves (2004 and 2007) of the Survey of Health, Ageing and Retirement in Europe, we compare transitions between employment statuses for disabled and non-disabled individuals, even after controlling for different disability trajectories. In addition, we employ a multivariate framework to examine the determinants for remaining in part-time work in 2007 for those individuals who were part-timers in 2004. The results show that older people with long-term disabilities have a higher probability of staying in a part-time job than their compared counterparts. Policy-makers must promote part-time employment as a means of increasing employment opportunities for older workers with disabilities and support gradual retirement opportunities with flexible and reduced working hours.     

The Selection of Partial or Full Retirement by Older Workers

The study investigated whether older workers chose partial or full retirement instead of full-time work. Partial or full retirement status was modeled as a combination of self-reported retirement status and change in number of hours worked. The results of multinomial logistic regression using data from the first and fifth waves of the Health and Retirement Study collected in 1992 and 2000 showed that age and gender had similar effects on the likelihood of partial and full retirement. Full retirement was also influenced by investment assets, pensions, employee health insurance, and poor health. The likelihood of partial retirement was also influenced by self-employment, chronic health conditions, and education. Workers who seek partial retirement need working conditions that allow them to make this choice.     

Determinants of retirement timing expectations in the United States and Australia: a cross-national comparison of the effects of health and retirement benefit policies on retirement timing decisions

Data from the U.S. Health and Retirement Study (N = 2,589) and the Australian Household Income and Labour Dynamics survey (N = 1,760) were used to compare the macro-level policy frameworks on individual retirement timing expectations for pre-baby boomers (61+ years) and early baby boomers (45 to 60 years). Australian workers reported younger expected age of retirement compared to the U.S. sample. Reporting poor health was more strongly associated with younger expected retirement age in the United States than in Australia. Cohort and gender differences in the United States were found for the effect of private health insurance on younger expected age at retirement. Our results draw attention to how cross-national comparisons can inform us on the effects of policies on retirement expectations among older workers.     

Working Hours Flexibility and Timing of Retirement: Findings from Europe

This study investigates how flexibility in working hours affects retirement timing. It tests the assumption that decreasing weekly working hours delays retirement and extends working life. Using data from four waves of the Survey of Health, Ageing and Retirement in Europe (SHARE) and of the English Longitudinal Study of Ageing (ELSA), we analyze whether a shift from full-time to part-time work delays retirement. Results show that older workers who reduce their working hours retire earlier than those who stay in full-time employment. The effect is stronger in Central and Eastern Europe than in Scandinavian countries. No interaction effects for gender and work strain are found. We conclude that part-time work at the end of the career, as a means to extend working life, should be reevaluated.     

Using Work Values to Predict Post‐Retirement Work Intentions

Work values might be proximal predictors of individuals' late‐career intentions because they serve as guiding principles for the selection, evaluation, and justification of vocational behavior. The purpose of this study was to examine the relationship between work values and post‐retirement work intentions. The authors investigated individual work values within the structure of 4 higher order values elaborated on by Schwartz et al. ( 2012 ). Relationships between work values and 4 types of post‐retirement work intentions were examined. Data from 1,071 employees of a German logistics company were used to test the hypotheses. The results of a structural equation model indicated that work values were differentially related to the 4 types of post‐retirement work intentions. The identified work value–work type combinations add to the literature on post‐retirement work. Practice implications for promoting positive individual and organizational outcomes are drawn from the results.     

Determinants of Retirement Timing Expectations in the United States and Australia: A Cross-National Comparison of the Effects of Health and Retirement Benefit Policies on Retirement Timing Decisions

Data from the U.S. Health and Retirement Study (N = 2,589) and the Australian Household Income and Labour Dynamics survey (N = 1,760) were used to compare the macro-level policy frameworks on individual retirement timing expectations for pre–baby boomers (61+ years) and early baby boomers (45 to 60 years). Australian workers reported younger expected age of retirement compared to the U.S. sample. Reporting poor health was more strongly associated with younger expected retirement age in the United States than in Australia. Cohort and gender differences in the United States were found for the effect of private health insurance on younger expected age at retirement. Our results draw attention to how cross-national comparisons can inform us on the effects of policies on retirement expectations among older workers.     

Individual and institutional push and pull factors as predictors of retirement timing in Europe: A multilevel analysis

The number of retired people in Europe has increased significantly in recent decades. It remains unclear, however, whether individuals are more likely to be pulled toward retirement by their expectations about life after retirement than they are to be pushed out of the labour market due to poor health or dislike of one's job. The fact that retirement timing differs rather considerably between European countries suggests that not only micro, but also macro push (i.e. labour market constraints) and pull (i.e. economic incentives) factors influence retirement decisions. This duality heightens the need to determine the influence of micro-level and macro-level push and pull indicators on the retirement timing of older workers (50 +) in Europe. Results are obtained performing multilevel event history analysis using longitudinal micro data from the first (2004/05) and second (2006/07) waves of the Survey of Health, Ageing and Retirement in Europe and macro data derived from the Organisation for Economic Cooperation and Development (OECD) and Eurostat. The results indicate that at the individual level, older workers are pushed out due to health problems as well as being attracted towards retirement to spend time with their grandchildren. At the institutional level, financial incentives such as a high implicit tax on continued work and high expenditures on early exit schemes make retirement attractive, whereas the institutional push context is of lesser importance.     

Intercounty Variability of Net Migration at Older Ages as a Path‐Dependent Process

This article seeks to identify factors associated with the formation and development of nonmetropolitan destinations for older in‐migration, thereby explaining why some U.S. counties are more likely than others to be nonmetro retirement destinations. We contend that most nonmetro retirement destinations are established and developed over time through a path‐dependent process. When amenities are commodified as recreation and tourism, migration streams tend to be established that ultimately produce sustained in‐migration of older persons to selected destination communities. We use data from a variety of official sources and a spatial statistics methodology to examine intercounty variability in net migration rates at ages 60–74. Our findings are consistent with the aforementioned path‐dependent development framework. Counties with a long history of population growth, previous experience attracting older in‐migrants, attractive natural amenities, and a developed recreation and tourism industry are those most likely to be retirement‐age migration destinations. In contrast, agricultural heartland and relatively large population size are associated with lower rates of older in‐migration. Older in‐migration should be seen as neither a panacea for strapped rural communities nor a “pensions and care issue.” Older migrants can be “gray gold,” but they can also pose challenges, such as possibly increased demand for public services as they age in place.     

Bildung und Übergang in den Ruhestand

On the basis of administrative data from the Research Data Centre (FDZ-RV) of the German Federal Pension Insurance, we examine the effects education has on the timing of retirement for employees in East and West Germany in 2007. The large sample size of the Scientific Use File of the pension inflow statistics (n = 29933) allows a differentiated analysis considering multiple dimensions. Using key demographic indicators such as sex, region, length of career and pension payments, we demonstrate the effects of the level of education on the age of retirement, measured in years between 60 and 65 or older. Our analysis shows that high skilled retire later than low skilled employees. The difference is smaller than one year. But the beginning of the high skilled careers is round about two years later, with higher pension payments. Based on this findings, we discuss to which extent skills can lengthen the lifetime career with respect to pull and push factors.     

The relationship between employer‐provided training and the retention of older workers: Evidence from Germany

A substantial portion of Germany's workforce will soon retire, making it difficult for businesses to meet their human capital needs; training older workers may help to manage this demographic transition. The authors therefore examine the relationships between employer‐provided training programmes, wages and retirement among older workers. They find that when establishments offer special training programmes targeted at these workers, women – especially low‐paid women – are less likely to retire, possibly because of consequent wage growth. Their results suggest that such targeted training can indeed play an important role in retaining low‐wage older women and advancing their careers.     

Phased Retirement for Older Workers in Taiwan

Working part-time has become a popular option during transition from a full-time career job to full retirement among older workers all over the world. Five waves of The Survey of Health and Living Status of the Elderly in Taiwan, from 1989 to 2003, are used to study older workers?? part-time work behaviors. The data confirm that more than 20% of full-time older workers with at least 10?years of job tenure do not fully retire from their career jobs. Moreover, there exists a significant proportion of older workers who stay with their career jobs and work part-time. We found that due to pension regulations, public sector employees are less likely to stay with their long-term employers and use phased retirement options.     

Retirement plan participation and features and standard of living of Americans 55 or older

This Issue Brief is the third in a series of Employee Benefit Research Institute (EBRI) publications based on data collected in 1998 and released in 2002 as the Retirement and Pension Plan Coverage Topical Module of the 1996 Survey of Income and Program Participation (SIPP). This report completes the series by examining the survey's more detailed questions concerning workers' employment-based retirement plans. Specifically, it examines the percentage of workers who are participating in a plan, and also workers' reasons for not participating in a plan when working in a job where a plan is sponsored; the features of, or decisions made concerning salary reduction plans; historical participation in employment-based retirement plans; and a comparison of the standard of living of individuals age 55 or older with their living standard in their early 50s. As of June 1998, 64.3 percent of wage and salary workers age 16 or older worked for an employer or union that sponsored any type of retirement plan (defined contribution or defined benefit) for any of its employees or members (the "sponsorship rate"). Almost 47 percent of these wage and salary workers participated in a plan (the "participation rate"), with 43.2 percent being entitled to a benefit or eligible to receive a lump-sum distribution from a plan if their job terminated at the time of survey (the "vested rate"). The predominant reason for choosing not to participate in a retirement plan was that doing so was unaffordable. The eligible participation rate for salary reduction plans was 81.4 percent. Fifty-six percent of all workers have participated in some type of retirement plan sometime during their work life through 1998. For those ages 51-60, almost 72 percent have ever participated in a plan. The median account balance in salary reduction plans in 1998 was $14,000. In 1998, 12.9 percent of salary reduction plan participants eligible to take a loan had done so, and the average outstanding loan balance was $5,196. Nearly 80 percent of those age 55 or older reported that their standard of living is about the same or better now than it was when they were in their early 50s. The incidence of both pension income and health insurance from a former employer had a significant impact on retirees' ability to maintain their standard of living. In addition, those who spent their entire most recent lump-sum distribution were more likely to have a much worse standard of living in retirement than those who rolled over their entire most recent distribution.     

Passed over for promotion because of age: An empirical analysis of the consequences

I test whether older individuals who report that their firms favor younger workers in promotion decisions are harmed by this oftencited discriminatory practice. Using the Health and Retirement Study, I determine whether such workers are more likely to experience lower wage growth, to separate from their employer, or to retire early, in comparison with workers with similar demographic and job characteristics. The evidence is consistent with lower wage growth and a greater likelihood of early retirement. Much of the effect, however, is likely to stem from a high correlation between delayedpayment contracts and promotion practices. I thank Jeff Biddle, John Goddeeris, David Neumark, John Strauss, and Jeff Wooldridge for helpful comments and suggestions. I gratefully acknowledge fellowship support during the completion of this paper from the Robert Wood Johnson Foundation.     

A relational analysis of migration in old age: How transnational ties affect migration decisions

Recently, the role of personal ties in migration decisions has received considerable attention. However, this aspect has seldom been studied in the context of retirement. This paper addresses this gap by shedding light on the composition of personal networks, types of mobility patterns and retirement locations for four groups of older adults. To this end, two methodological approaches are employed: (1) a qualitative Social Network Analysis to examine the composition of older adults' personal networks and (2) thematic coding to analyse the relational aspects of migration decisions. This paper draws on 29 semi-structured interviews conducted in Spain and Switzerland in 2020 and 2021. The findings demonstrate that pre-retirement migration trajectories shape personal network composition. Moreover, personal ties play a critical role in older adults' mobility patterns and choices of retirement location. Overall, this study provides valuable insights into the impact of personal networks on migration decisions of older adults.     

Take Me “Home”: Return Migration among Germany's Older Immigrants

This paper examines the determinants of return migration as foreign‐born men approach old age in Germany. Return migration in later life engages a different set of conditions from return migration earlier on, including the framing of return as a possible retirement strategy. Using 23 years of longitudinal data from the German Socioeconomic Panel, this paper investigates how social and economic resources of immigrant men influence decisions to return “home.” Results suggest that immigrants from former guest worker recruitment countries within the European Union are more likely to return than non‐EU immigrants. In addition, return migrants are “negatively selected” so that those with the least education and weakest attachments to the labor force are more likely to emigrate. However, findings vary greatly depending on the immigrant's age and country of origin. Results from this paper highlight the heterogeneity of older immigrants and the factors that motivate their return “home”.     

Retiree Health Insurance and Disengagement from a Career Job

Over the past two decades the prevalence of partial/phased retirements has increased dramatically, redefining retirement and the way in which retirement benefits are evaluated. Specifically the effect of retirement benefits on the transition away from a state of career employment has become the primary issue of interest. This study uses data obtained from the Health and Retirement Study (HRS) and the Rand HRS files, to examine the relationship between access to retiree health insurance (RHI) and the decision to leave one’s career job. We employ a Cox Proportional Hazard Model to estimate how RHI affects the probability that an individual disengages from their career job, given they have not yet done so. Results indicate that those with access to RHI are 21% more likely to leave their career employer in all time periods than similar individuals without RHI. Several robustness tests including stratified estimation and propensity score matching are performed and no evidence of bias is detected.     

Potential consequences of raising the Social Security eligibility age on low-income older workers

To examine the potential consequences of raising the Social Security retirement age on future cohorts of low-income elders, this study, based on data from the Health and Retirement Study, 1992-1994, identifies factors that may hinder or facilitate continuous employment among older workers born between 1931 and 1941. Specifically, following the analysis of labor-force participation rates and self-reported reasons for non-work, multivariate logistic regression models tested the relationship between individual strengths and constraints, social-structural opportunities and constraints, and economic need variables and the likelihood of work. The findings show that for both men and women, having disabilities was the most significant predictor of non-work. Racial differences, especially in men's labor-force participation rates, appeared to be due in large part to significant racial differences in disability rates. A higher proportion of blacks and Hispanics than whites also reported that they were unemployed. Based on the findings, raising the Social Security eligibility age is likely to result in increased numbers of Disability Insurance (DI) claimants, and the fiscal impact of such an increase needs to be examined. The need to assist unemployed older persons is also discussed.     

Potential Consequences of Raising the Social Security Eligibility Age on Low-Income Older Workers

Abstract

To examine the potential consequences of raising the Social Security retirement age on future cohorts of low-income elders, this study, based on data from the Health and Retirement Study, 1992–1994, identifies factors that may hinder or facilitate continuous employment among older workers born between 1931 and 1941. Specifically, following the analysis of labor-force participation rates and self-reported reasons for non-work, multivariate logistic regression models tested the relationship between individual strengths and constraints, social-structural opportunities and constraints, and economic need variables and the likelihood of work. The findings show that for both men and women, having disabilities was the most significant predictor of non-work. Racial differences, especially in men's labor-force participation rates, appeared to be due in large part to significant racial differences in disability rates. A higher proportion of blacks and Hispanics than whites also reported that they were unemployed. Based on the findings, raising the Social Security eligibility age is likely to result in increased numbers of Disability Insurance (DI) claimants, and the fiscal impact of such an increase needs to be examined. The need to assist unemployed older persons is also discussed.     

Retirement and marital decision making: Effects on retirement satisfaction

This study explores how partner's employment and preretirement decision‐making structures affect retirement satisfaction, using pooled data from Waves 1 to 4 of the Health and Retirement Surveys. Based on resource theory, the analyses indicate that retired husbands are least satisfied if their wives remain employed and had more say in decisions prior to the husband's retirement. Retired wives are least satisfied if their husbands remain employed and had more say in decisions prior to the wife's retirement. These results suggest that retirement transitions undermine married retirees’ satisfaction if they enhance the other partner's influence in the relationship. More research should address linkages between work and family realms during transitions such as retirement and explore the negotiation processes surrounding such transitions.