How do pensions affect expected and actual retirement ages?

Munnell

Alicia Haydock

Munnell, Alicia Haydock

Dept. of Finance, Carroll School of Management

Author

Triest

Robert K.

Triest, Robert K.

Author

Jivan

Natalia A.

Jivan, Natalia A.

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20042004monographic

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2004

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

This paper uses the first six waves of the Health and Retirement Study to investigate the impact of pensions on expected retirement age, on the probability of being retired in each wave given employment in the previous wave, and on the probability of retiring earlier than planned. Pension coverage per se and the type of pension are important in each case. Pension wealth reduces the expected retirement age by 0.6 year, and the incentives in defined benefit plans lower the expected age by another 1.1 years. Pension wealth increases the probability of retiring in a given wave, and pension accruals reduce the probability. Other characteristics of defined benefit plans, as measured by the pension dummy, further raise the probability of being retired. Finally, with regard to the probability of retiring earlier than planned, a change in defined contribution wealth increases the probability, but pension coverage per se reduces it. That is, those with pensions tend to be more accurate planners than those without.

Alicia H. Munnell, Robert K. Triest, and Natalia A. Jivan.

CRR WP2004-27

CRR WP

2004-27

http://crr.bc.edu/images/stories/Working_Papers/wp_2004-27.pdf

MChBEnglisheng

MChB

Englisheng

English

eng