How Do Pensions Affect Expected and Actual Retirement Ages?

26 Pages Posted: 20 Jun 2008

See all articles by Alicia H. Munnell

Alicia H. Munnell

Boston College - Center for Retirement Research

Robert K. Triest

Federal Reserve Bank of Boston - Research Department; Boston College

Natalia Jivan

Boston College - Center for Retirement Research

Date Written: November 1, 2004

Abstract

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.

Suggested Citation

Munnell, Alicia and Triest, Robert and Jivan, Natalia, How Do Pensions Affect Expected and Actual Retirement Ages? (November 1, 2004). Available at SSRN: https://ssrn.com/abstract=1147718 or http://dx.doi.org/10.2139/ssrn.1147718

Alicia Munnell (Contact Author)

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States
617-552-1762 (Phone)

Robert Triest

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Avenue
Boston, MA 02210
United States
617-973-3431 (Phone)
617-973-3957 (Fax)

Boston College ( email )

Chestnut Hill, MA 02167
United States

Natalia Jivan

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States

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