Social Interactions and the Retirement Age

38 Pages Posted: 3 Mar 2015

See all articles by Niels Vermeer

Niels Vermeer

CPB Netherlands Bureau of Economic Policy Analysis

Maarten van Rooij

De Nederlandsche Bank; Netspar

Daniel J. van Vuuren

CPB Netherlands Bureau of Economic Policy Analysis

Multiple version iconThere are 2 versions of this paper

Date Written: October 31, 2014

Abstract

In this study we gauge the impact of social interactions on individual retirement preferences. A survey including self-assessments and vignette questions shows that individual preferences are affected by preferences and actual retirement behavior of the social environment. Retirement from paid work depends on the retirement age of relatives, friends, colleagues and acquaintances. Information and advice provided by the social environment play a role in the retirement decision. A majority of respondents would postpone retirement when their social environment retires later. Our results indicate that a one year increase in the retirement age in an individual’s social environment is followed by an average increase of three months in the individual’s own retirement age. In addition, people show the tendency to stick more to the state pension age than to other retirement ages, which may suggest that the state pension age functions as a social norm.

Keywords: Retirement decisions, social norms, sources of advice, state pension age

JEL Classification: -

Suggested Citation

Vermeer, Niels and van Rooij, Maarten and van Vuuren, Daniel J., Social Interactions and the Retirement Age (October 31, 2014). Netspar Discussion Paper No. 10/2014-075. Available at SSRN: https://ssrn.com/abstract=2572872 or http://dx.doi.org/10.2139/ssrn.2572872

Niels Vermeer (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Maarten van Rooij

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

HOME PAGE: http://www.dnb.nl/en/onderzoek-2/onderzoekers/overzicht-persoonlijke-paginas/dnb150127.jsp

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Daniel J. van Vuuren

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

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