Timing of retirement: Including a delay discounting perspective in retirement models

Abstract

This research examined the influence of delay and anticipated health and enjoyment on the amount of retirement savings sacrificed for early retirement. In addition to testing and supporting predictions that willingness to sacrifice retirement savings would be less with shorter delays to retirement, greater anticipated health, and greater anticipated enjoyment, an individual difference delay discounting measure derived from experimental studies was used to extend the Beehr, Glazer, Nielson, and Farmer’s (2000) model of retirement age. We predicted and found that oldest preferred retirement age related to personal characteristics, current work factors, future retirement factors, and individual differences in delay discounting, with greater delay discounting being associated with a younger preferred retirement age. Findings suggest that delay discounting is an important consideration in retirement planning and also highlight the significance that retirement expectations and being tired of work have in affecting one’s preferred retirement age.