Retirement and the Evolution of Pension Structure
University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)
Boston College - Center for Retirement Research
NBER Working Paper No. w9999
Defined benefit pension plans have become considerably less common since the early 1980s, while defined contribution plans have spread. Previous research showed that defined benefit plans, with sharp incentives encouraging retirement after a certain point, contributed to the striking postwar decline in American retirement ages. In this paper we find that the absence of age-related incentives in defined contribution plans leads workers to retire almost two years later on average, compared to workers with defined benefit plans. Thus, the evolution of pension structure can help explain recent increases in employment among people in their 60s, after decades of decline.
Number of Pages in PDF File: 43working papers series
Date posted: September 28, 2003
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