Do Pensions Impede Phased Retirement?
37 Pages Posted: 6 Jul 2004
Date Written: October 2004
Many workers reveal a preference for a gradual reduction in work hours as they approach retirement ("phased retirement"), rather than a sudden change from full-time work to full-time retirement. Pension regulations may impede phased retirement without a switch of employers by prohibiting access to pension assets. This study uses Health and Retirement Survey data to investigate the extent to which a gradual reduction in work hours is made difficult by pensions, particularly defined benefit plans. The study also explores other possible impediments to phased retirement.
Keywords: Retirement, pensions, phased retirement
JEL Classification: J26
Suggested Citation: Suggested Citation
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By Seongsu Kim