The evolving concept of "retirement": Looking forward to the year 2050

Economic growth, more than demography, will determine the nature of future retirement. With growth has come a steady increase in retirement years. Now, however, there is increasing interest in "rolling back" these gains. Alternatively, some scholars propose a different framework for evaluating "work" late in life — one that includes altruism, citizenship, stewardship, creativity, and the search for faith. Attitudes toward retirement in the future are likely to move sharply away from the simplistic view of all work before retirement and no work after. Some of the resulting changes we can expect to see are more part-time work, expanded "citizen participation," and an older workforce with more training and retraining.     

Gender differences in the effect of social resources and social status on the retirement satisfaction and health of retirees

This study explores the effect of positive and negative social support, social reciprocity, and subjective social status on the retirement satisfaction and health of retirees and gender differences therein. Using cross-sectional data from the 2010 and 2012 waves of the Health and Retirement Study (HRS), we found that social support seems to matter more for the retirement satisfaction and health of women, while social reciprocity matters more for the health of men and subjective social status for the retirement satisfaction of men. Implications for the development of social programs and policies over the life course are discussed.     

Australia's retirement income revolution: a Finnish system "down-under"

Most advanced industrial societies are confronting serious economic recession, and governments are seeking ways to stimulate economic growth and reduce government expenditure. For many countries these problems are compounded by aging populations and demographic changes. There are fewer people in the workforce, and more people in older age groups live longer and have increased expectations for retirement lifestyles. The result has been that many governments are radically transforming their systems of retirement income provision, often causing political, economic and social upheaval and widespread public anxiety. Australia is one country in which there have been huge changes in the retirement income system in the past 5 years. The system has been substantially privatized, and future retirement income will come from statutorily enforced earnings-related individual savings accumulated in decentralized private funds. Australia's new retirement income regime bears extraordinary similarities to the Finnish system of employment-related pensions, yet there was no reference to the Finnish system in the evolution of the new Australian system. There are lessons for Australia and for other countries in the long and successful operation of the Finnish pension system. This article first examines Australia's retirement income system, recent government policy changes and likely implications of these retirement policy changes for the future of Australia's traditional welfare state. Cross-national comparisons of the retirement income regimes in Finland and Australia, identifying international best practice in each country, comprise the second half of the article. Such comparisons will be of interest to policy-makers seeking new policy directions.     

Effective retirement age from employment and full‐time employment,and the impact of the 2008 crisis

Estimates of effective retirement age based on labour force participation rates are commonly used for actuarial experience review and policy development. However, the transition from work to retirement and the socio‐economic environment have evolved over the years, influenced by a growing role for gradual retirement and the labour market impact of the 2008 economic crisis. Rather than focusing exclusively on retirement ages based on labour force participation rates, this article presents complementary estimates of retirement ages to better assess the effective retirement age from employment. It also introduces the concept of retirement from full‐time employment, showing that the retirement age from full‐time employment is systematically lower than the retirement age from employment. The results reveal that the trend towards an increase in the retirement age has been impacted by economic conditions when considering the effective employment of older workers. Results are presented for different Member countries of the Organisation for Economic Co‐operation and Development over the period 2005–2015.     

Generational equity and the reformulation of retirement

Starting from an examination of the essential components of the long-established contract between the generations, the analysis moves on to examine public policy responses to the aging of populations. Observing an international inclination to panic at the growth of old age and to restrict expenditure on services to older people, the article addresses practical questions of political economy within the generational contract. On the one hand, cuts to pensions and services are seen not to be economically inevitable. On the other, it is argued that modern retirement breaches the compact between the generations and will need to be reformulated, enabling more people to earn income well beyond current retirement ages.     

The decline of substitute pathways into retirement: Empirical evidence from the Dutch health care sector

Early retirement schemes and disability insurance in the Netherlands have undergone several reforms in recent decades. The reforms have increased incentives for older workers to continue working and have decreased the roles of “substitute pathways” into retirement. This article gives an overview of the reforms and, using administrative data for workers in the health care sector, tests a number of hypotheses about the labour market participation of older workers. The results offer two main findings: i) that the Dutch reforms have indeed been effective, as the labour force participation rate of older workers has increased; and ii) the concept of “substitute pathways” has become less relevant as the use of disability insurance has been closed off as an exit route to early retirement. Nevertheless, caution is required before generalizing the implications of these Dutch findings to other OECD countries.     

Promoting a higher retirement age: A prospect‐theoretical approach

Demographic ageing and the necessity of raising the retirement age is one of the most frequently debated topics among European welfare policy experts. This study used prospect theory as developed in behavioural economics to explain public attitudes towards pension reforms. It argues that, in line with prospect theory, negative incentives are more useful in changing people's attitudes in favour of a higher statutory retirement age than are positive incentives. Therefore, in the case of increasing life expectancy, defined‐contribution schemes that apply actuarial formulae linking the level of starting monthly pension benefits to life expectancy are more useful in promoting a higher retirement age than conventional defined‐benefit schemes, which typically do not forge an automatic connection between longevity and starting pensions. The implications of prospect theory for attitudes towards pension reforms were tested using Eurobarometer survey data collected in 2004 and 2009 in the Czech Republic, Poland and Slovakia.     

Complementary retirement pensions: Towards a definition of terms

One of the main difficulties in carrying out an international comparison of retirement systems is the task of establishing clear common terminology. Like other social institutions, welfare systems differ from country to country; confusion can arise when a given word is applied to different institutional structures because such usage can mask important differences. On the basis of a comparison of complementary pension plans in the United States, Ireland, the United Kingdom, France and Germany, this paper discusses and clarifies the meanings of some key terms. The distinction between "private" and "public" retirement plans, commonly used by Americans, can be erroneously applied to other systems, particularly that of France, where complementary retirement plans resemble American "private" plans in some respects and "public" plans in others. The terms "occupational" and "supplementary", often used in Europe, can be used interchangeably; however, each one stresses different aspects of complementary plans. The terms "funding" and "pay-as-you-go" and their equivalents in French (répartition and capitalisation) have somewhat different meanings and quite different connotations. Finally, the author discusses the concept of "social insurance", as applied to both social security and complementary pension plans, to end with some reflections on the definition of what constitutes a retirement plan.     

Improving gender outcomes in social security retirement systems

Assessing whether retirement systems meet their varying objectives requires analysing outcomes across different categories of beneficiaries with different working, financial, demographic, and family situations. Policymakers should therefore assess systems on the distribution of outcomes rather than average outcomes. Much has been written about the gender inequalities inherent in labour markets and how these are reflected and reproduced in pension systems, and there is growing evidence that recent reforms have exacerbated these trends. Recent research has turned to the policy measures available to policymakers to forestall or reverse these trends, but this literature tends to overlook important administrative measures that have the potential to reduce inequalities in access that could improve pension outcomes for women within the current policy framework. This paper examines the main issues surrounding gender inequality in retirement outcomes; explores the implications of recent reform trends in light of the differential outcomes for women, including policy options to mitigate the negative impacts; and concludes with a review of key administrative measures, including streamlining affiliation procedures, improving information, and simplifying payment of contributions and receipt of benefits and better compliance of employers.     

The economics and politics of retirement incomes policy in Australia

The process of adjustment to the changing demographic balance in Australia over recent years has resulted infrequent and complex changes in Australia's retirement income arrangements. Many people have found great difficulty in understanding how these new arrangements are supposed to work. This article describes some of these recent changes and the factors that triggered them. It also examines what the elderly's reactions to these changes indicate about the nature of the "politics of ageing". Beginning with an overview of population ageing in Australia, it then briefly outlines the major features of the country's retirement income system. This is followed by an examination of the factors that triggered the recent changes in retirement income arrangements. The last section describes the political response of Australia's elderly to these changes.     

The effects of age structure on the labor force and retirement in China

What are the current and future trends in age structure in China as it relates to labor force and retirement? And, what is the impact of the one-child policy on these trends? A trend analysis identifies that as the parents of the one-child family age, China will have an older population, proportionately, with a smaller middle-aged population to support them in the traditional manner, unlike previous generations. A burden will be placed on the working age population as the one-child generation will have to help support two parents if single, and four parents if married, particularly in urban areas. This will also impact rural areas where formal systems of elderly support are not yet fully developed. In terms of labor resources, the elderly may be better supported in old age if they stay in the labor force for a longer period. However, younger workers need employment, while the old must work to offset the lack of formal support, and the potential decline in intergenerational family support due to the changing age-structure. The challenge facing policy-makers is to bring about a balance between employment patterns and support between generations.     

Working Class Women and Retirement

This study explored retirement and the work life experiences of working-class women. Ninety-nine black and Caucasian women ranging in age from 66 to 84 were administered a telephone questionnaire assessing why they retired, and why they returned to work after retirement. Most compelling among the findings from this research were low earnings status and its lasting effects on psychological, physical, social, and economic well-being during retirement. Furthermore, occupations segregated by sex were associated with discrimination and low pay. A work life spent in sex segregated jobs, along with discrimination, left most of the working-class women with an economically insecure retirement. This resulted in women returning to the work force after retirement to supplement their income.     

France: working longer takes time,in spite of reforms to raise the retirement age

Examination of the French situation from a comparative European perspective exposes the country's poor performance with regard to the employment of seniors and the prolongation of working life. Despite a recent rise in the employment rate of 55–59 year‐olds, worrisome signs have appeared, such as the steep rise in unemployment for this age category; this is indicative of the increasing vulnerability of ageing workers in the labour market. This critical analysis of twenty years of French public policies related to older workers seeks to identify the reasons for France's lag in making working life longer. The principal reason seems to be that public policies have nearly exclusively focused on increasing the supply of senior labour without adequately taking into account incentives for stimulating corporate demand for it. The many pension reforms undertaken from 2003 to 2014 have sought to lift the institutional obstacles to working longer. Accordingly, they have raised both the legal retirement age and the requisite number of quarters of contributions for entitlement to a full pension under Social Security. But effective, active labour market policies for stimulating the demand for senior labour have been lacking.     

Increased wealth and income as correlates of self-assessed retirement

This study examined whether retirement implies complete withdrawal from the labor force and the role that increased wealth and income play in regard to the nature of retirement. Data came from the Health & Retirement Study, Waves 1-5. Findings indicated that most study sample pre-retirees remained in the labor force as they moved into what are considered the normal retirement years. As they moved on average from 50+ years of age to 60+ years of age, increasing percentages of study sample pre-retirees reported themselves as completely retired. Those who viewed themselves as completely retired were far less likely to work than those who did not view themselves as completely retired. Of particular importance was the finding that increased income in 2000 decreased the likelihood of self-reported complete retirement. Equally important was the finding that increased assets had no effect on retirement status with the exception of survey year 1998 when increased assets decreased the likelihood of viewing oneself as completely retired. Findings suggested that pro-work retirement policies aimed at increasing labor force participation among pre-retirees and increasing the normal retirement age can be effective. Five pro-work policies were discussed.     

The development of some characteristics for equitable national retirement income systems

The objective of this paper is to establish and apply a set of characteristics or benchmarks for a nation's total retirement income system to be considered equitable. It must be stressed that the suggested characteristics do not, by themselves, design a national retirement income system. Indeed, it is recognized that the political, historical, economic and cultural context of each country will always influence such designs. However, this paper will demonstrate that different designs of national retirement income systems are not equally effective when subjected to these equity criteria. Hence, in putting forward these characteristics, the aim is to develop clear distinctions between equitable and inequitable national retirement income systems.     

ISSUES AFFECTING WOMEN'S RETIREMENT PLANNING

There has been a steep rise over the past 20 years in the proportion of women who enter the workforce, with a concomitant increase in the number of women who will be retiring in the next 20 years. In the past, the majority of women over 60 have either been supported by their husbands superannuation benefits, or have been dependent on a government pension. This situation is unlikely to continue; it is becoming increasingly essential for women to make provision for their own post-retirement income. However available evidence suggests that women are not effectively planning for their retirement and are increasingly at risk of facing a life of poverty in their old age. This research project examines some of the factors that impact on women's capacity to effectively plan their retirement. In particular, the research explores the attitudes of women to retirement planning, access to information, and external impediments particularly labour market conditions.     

Those who cannot have what they want must want what they can get: The experience with company-based early retirement pension schemes in Norway

Early retirement is a central bridge between permanent work and standard pension age. During 1988-1989, 10% of all private Norwegian companies, employing about 20% of all employees, had made use of early retirement schemes, mainly as a means of reducing staff. A central question is whether early retirement creates welfare or reduces it for the early retirees. Case studies of 4 companies and panel studies of potential early retirees have been used to throw light on these questions: what are the experiences of those involved, and do they wish to leave work or is leave taken involuntary? Only 1 of 7 early retirees adapted poorly, mostly due to poor health, a strong work orientation combined with unfilled expectations for part-time work and the feeling that they had no choice but to accept the offer. The majority seem to adjust fairly well to life as a pensioner, especially if they have some part-time work. Besides high financial compensation, satisfaction with early retirement depends on whether the scheme is regarded as legitimate in the community and the individual considers the transition to be meaningful.     

Risk preferences of Australian academics: where retirement funds are invested tells the story

Risk preferences of Australian academics are elicited by analyzing the aggregate distribution of their retirement funds (superannuation) across available investment options. Not more than 10 % of retirement funds are invested as if their owners maximize expected utility under the assumption of constant relative risk aversion with an empirically plausible level of risk aversion. An implausibly high level of risk aversion is required to rationalize any investment into bonds when stocks are available. Not more than 36.54 % of all investments can be rationalized by a model of loss averse preferences. Moreover, the levels of loss aversion typically reported in the experimental studies imply overinvestment in bonds, which is not observed in the data. Up to 67.18 % of all investments can be rationalized by rank-dependent utility or Yaari’s (Econometrica 55:95–115 1987) dual model with empirically plausible parameters. A median Australian academic behaves as if maximizing rank-dependent utility with parameter \(\gamma \in [0.76, 0.79]\) in a Tversky and Kahneman (J Risk Uncertain 5:297–323 1992) probability weighting function.     

To Retire or Not to Retire: Is There an Option for Older Workers in Hong Kong?

Over the next thirty years, Hong Kong will have a rapidly ageing population. One possible consequence of this will be a labour shortage, which means that it will be essential to strike a proper balance between the amount of time spent in work and the amount spent in retirement in old age. The balance is determined by the interaction between the aspiration of workers, employers’ attitudes to older workers, as well as the productivity of the labour force. In this article, we examine the issue based on life‐course theory and we argue that the compartmentalization of education, work and retirement must be broken by changes in social policy. We identify three groups of future older adults in the coming three decades: those who may be forced to retire early in their fifties, those who plan to retire in their sixties, and those who will continue to work until they can no longer work. The current situations of these groups are described, and social policies that are related to retirement pension scheme, age discrimination, life‐long education, and flexible work arrangements are suggested to weaken the age structuring of education and employment institutions. Our ultimate objective is to create a societal environment in which older workers have a real option either to work or to retire in the coming decades.     

Achieving fuller working lives: labour market and policy issues in the United Kingdom

In the United Kingdom there has been a shift away from policies promoting early retirement towards an emphasis on extended, fuller working lives. This article examines the nature of policy change in this area and prospects for individuals remaining in work longer. Pension ages for men and women are rising rapidly and by 2028 are likely to reach 67 years. Cash benefits for those out of work before state pension age are becoming harder to access and incentives for working beyond 65 are being enhanced. In this context, restrictions have been placed on the use of mandatory retirement ages by employers. Employees have also been granted the right to request flexible employment. However, a lack of coordinated policy up until now means that important challenges exist with regard to extending working lives. Ill‐health and low levels of qualifications limit the employment prospects of many older people, particularly among those in the poorest segments. Likewise, retention rates of older workers may have improved, but prospects for recruitment in older age remain poor. Policies focusing on the individual have also not yet recognised the extent to which employment in older age is influenced by the household and wider family context.