Factors Contributing to Retirement Decisions in Denmark: Comparing Employees Who Expect to Retire before, at, and after the State Pension Age.

Annette Meng,Lars L Andersen,Emil Sundstrup

doi:10.3390/ijerph17093338

Abstract

Aim: Analyse factors affecting retirement decisions comparing employees expecting to retire before, at, and after the state pension age. Methods: In the SeniorWorkingLife cohort, 12,269 workers aged +50 replied to questions about expected retirement age, reasons for leaving, and reasons for staying longer. Results: For all groups, poor health, wish for more leisure, and economy were the most salient expected reasons for retiring. Many would stay longer if there were better possibilities for more leisure time, more work flexibility, and economic benefits. Those expecting to retire before state pension age were more likely to point at desire for more leisure time as expected reason for retiring, and less likely to point at economic reasons, and more likely to point at health and work demands as possible reasons for prolonging working life. Those expecting to retire after state pension age were more likely to point at external factors and recognition from the management. Conclusion: Factors influencing retirement decisions are similar across the groups. Initiatives for better work–life balance, healthy lifestyle, and economic incentives to continue working may help prevent early retirement and motivate prolonging work life beyond retirement. Results also indicate that less strenuous work is particularly relevant to prevent early retirement.

Highlights

As a consequence of the ageing population in many western countries, the proportion of older workers and, workers potentially leaving for retirement is increasing
The self-rated physical and psychological strain at work is less among those expecting to retire after the state pension age, and the self-rated work ability is slightly better among those expecting to retire after the state pension age
When comparing the retirement groups, the results show that those expecting to retire later were less likely to point towards the two factors related to leisure as possible reasons for them staying in the labour market for longer (OR: 0.59 (0.51–0.68), 0.69 (0.59–0.80))

Summary

Introduction

As a consequence of the ageing population in many western countries, the proportion of older workers and, workers potentially leaving for retirement is increasing. To deal with the potential lack of qualified workers and potential economic strain caused by these demographic changes, there is strong political interest in prolonging work life in most western countries. Knowledge on factors that can prevent early retirement and contribute to prolonged labour market participation is becoming increasingly salient. Push refers to factors pushing the worker involuntary out of the labour market such as ill health or adverse working conditions. Pull refers to factors pulling the worker out of the labour market such as economic incentives and Jump to internal motivations to leave the labour market such as the wish for more time for leisure activities. Stay refers to factors motivating the worker to stay at work such as financial gains and work satisfaction and, Stuck to factors leading to the worker being stuck involuntarily at work, for example, because of a poor financial situation so the worker cannot afford to retire

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