Abstract
Organizational justice is an important aspect of the psychosocial work environment, but there is a lack of studies on whether justice perceptions also predict retirement decisions. The aim of this study is to examine trajectories of procedural and interactional justice perceptions prior to retirement of three groups of retirees while considering self-rated health and important demographics. Data from the Swedish Longitudinal Occupational Survey of Health (2006–2018, N = 3000) were used. Respondents were grouped into early retirement, normative retirement and late retirement. Latent growth curve models and multinomial logistic regressions were conducted to test whether trajectories of justice perceptions prior to retirement differed between retirement groups while controlling for self-rated health development and demographic variables. Late retirees had higher intercept levels of interactional justice and higher intercept levels of self-rated health prior to retirement, compared to early retirees. Late retirees also showed a slower decrease in procedural justice compared to early retirees. Only intercept levels of self-rated health differed between early retirees and normative retirees, such that early retirees had lower levels of self-rated health prior to retirement. Keeping employees in the workforce is a major challenge for any aging society. Organizational justice perceptions in the years prior to retirement seem particularly influential for delaying retirement.
Highlights
Accepted: 12 June 2021In Europe, decreasing birth rates together with longer time spent in higher education and a later entry into the labor market make it vital for organizations to rely more on older workers
In the second step of our analysis, we aim to examine how the latent growth curve models (LGCM) of procedural and interactional justice over time may predict retirement groups
Our findings suggest that trajectories in organizational justice perceptions and self-rated health prior to retirement differ, to some extent, between early, normative and late retirees
Summary
In Europe, decreasing birth rates together with longer time spent in higher education and a later entry into the labor market make it vital for organizations to rely more on older workers. In Sweden, there is officially no statutory retirement age. The norm is to leave working life at the age of 65 years [3,4]. Workers in Sweden had the opportunity to retire from the age of 61 and receive earnings-related state pension. From the age of 65 years, a guarantee pension is paid out to all if the earnings-related state pension is below a certain threshold. Many workers have an occupational pension from their employers, this type of pension is usually paid out at the age of 65 years individuals can actively change the timing of payments. Many organizations face the question how to influence individuals’ retirement behavior and retirement decision-making processes
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