Full Retirement Research Articles

Spirituality for Sustainable Careers and Successful Aging at Work Over the Lifespan

As the aging of the population puts at risk retirement pension systems worldwide, the aim of this conceptual paper is to shift scholarly attention from workers “growing old” to “growing whole over the lifespan,” answering a provocative research question: What if spirituality allowed workers to remain in the labor market with more sustainable careers so that full retirement would become necessary only due to cognitive and/or physical declines in older age? The model posits that spirituality can foster sustainable careers over the lifespan at three levels: consciousness (individual, transcending identity), connectedness with all beings on Earth (interpersonal, transcending mattering), and wholeness with the Universe or a higher power (transpersonal, transcending meaning). These levels ultimately contribute to successful aging at work from a younger age by allowing individuals to enjoy retirement’s traditionally associated psychological benefits over the lifespan. Boundary conditions at the broader societal, organizational, and individual levels are discussed. By uniting the careers and spirituality at work literatures, this paper contributes to expand the definition of successful aging currently limited to older workers into a lifelong continuous effort, in an invitation to reframe individuals’ psychological need for retirement beyond that of a compensation or escape from an unsustainable career.

Optimal Design of Raising Retirement Age

Population aging threatens the future fiscal balance of the public pension system across many countries, and policymakers have often undertaken parametric pension reform as a solution. However, any reform will inevitably introduce intergenerational conflicts and thus needs a gradual transition to allow individuals to slowly adapt to their new retirement plans. In this article, we study the optimal schedule for lifting the full retirement age using the optimal control approach. Given the aggregate actuarial loss of the pension system, our target is to smoothly distribute the deficit across different generations, subject to a fairness constraint that prohibits any cohorts from taking advantage of others. We further illustrate our results using China as an empirical example and investigate the impacts of different actuarial assumptions, benefit accrual formulae, and population structures.

The Effects of Increasing the Full Retirement Age from 66 to 67 on the Retirement Decision at the Early Retirement Age of 62

In the United States, the full retirement age increases in two-month increments each year until reaching 67 years of age in 2027 for individuals born from 1955 to 1960. The increase in the full retirement age is equivalent to a decline in the Social Security benefits for all new retirees. If the full retirement age is increased from 66 to 67 while the early retirement age remains at 62, then the monthly benefit reduction at age 62 would increase from 25% to 30%. Despite the reduction in Social Security benefits, a significant portion of newly retired workers claim their Social Security benefits as soon as they turn 62, which is the earliest age to claim the benefit. The Social Security Administration predicts that the reduction in Social Security benefits can encourage workers to delay their retirement and that the reduction can restore some financial balance to the Social Security system. Therefore, studying the effects of increasing the full retirement age from 66 to 67 on the retirement decision at 62 is essential for planning future social security reforms. This study conducts a Two-Stage Least Squares (2SLS) regression, using cross-sectional and time series data from the Behavioral Risk Factor Surveillance System (BRFSS) from 2016 to 2021. The empirical results show that the probability of retirement for individuals at age 62 decreased from 2016 to 2021, indicating a trend of delaying retirement as their full retirement age rises. During the same period, the likelihood of men reporting being retired decreases by 35.56%, while for women, it drops by 16.79%. It implies that if male and female workers choose to exit the workforce solely based on the Social Security benefits, the increase in full retirement age appears to have a more significant impact on delaying retirement decisions for male workers than for female workers.

How Sticky Is Retirement Behavior in the United States?

Abstract We study how increases in the U.S. Social Security full retirement age (FRA) affect benefit-claiming behavior and retirement behavior separately. Using long panels of Social Security administrative data, we implement complementary research designs of a traditional cohort analysis and a regression-discontinuity design. We find that while claiming ages strongly and immediately shift in response to increases in the FRA, retirement ages exhibit persistent “stickiness” at the old FRA of 65. We use several strategies to explore the likely mechanisms behind the stickiness in retirement, and we find suggestive evidence that employers play a role in workers’ responses to the FRA.

The Impact of Severe Heart Disease on Causes of Death and Survival after Disability Retirement.

Noncommunicable diseases contribute to premature deaths and limitations. Disability retirement is linked to chronic conditions, particularly cardiovascular diseases. The II Brazilian Guideline for Severe Heart Disease established criteria for cardiovascular disease classification. However, there is a lack of research in this topic within federal institutions. Evaluate the survival and causes of death among disabled retirees at UFRJ, focusing on the impact of severe heart disease. A retrospective cohort study based on retirement and death records over 15 years. Retirements were categorized into three groups: full retirement due to severe heart disease, full retirement due to other diseases and proportional. Causes of death were obtained from death certificates. Mortality rates, survival and the presence of matching diagnoses between retirement and death were evaluated. Chi-square, log-rank, Cox models, Kaplan-Meier curves were utilized. Statistical significance with a 95% confidence interval, considering p<0.05. There were 630 retirements, 368 (51.4%) in females, with an average age of 52.9 (SD=7.8) years, and 169 (26.8%) deaths. Mortality was higher in professors (37.0%; p=0.113), in the age group between 65 and 70 years (48.4%; p=0.004), in males (34.0%; p=0.001), and in full retirements due to severe heart disease (41.5%; p<0.001). Matching diagnoses between retirement and death were more frequent in professors (74.1%; p=0.026) and in full retirements due to severe heart disease (72.7%; p<0.001). Severe heart disease diagnosis is associated with higher mortality and shorter survival in disabled retirees. Its frequent occurrence in retirement and death diagnoses underscores its significance in this context.

O Impacto da Cardiopatia Grave nas Causas de Óbito e Sobrevida após Aposentadoria por Invalidez

Abstract Background: Noncommunicable diseases contribute to premature deaths and limitations. Disability retirement is linked to chronic conditions, particularly cardiovascular diseases. The II Brazilian Guideline for Severe Heart Disease established criteria for cardiovascular disease classification. However, there is a lack of research in this topic within federal institutions. Objectives: Evaluate the survival and causes of death among disabled retirees at UFRJ, focusing on the impact of severe heart disease. Methods: A retrospective cohort study based on retirement and death records over 15 years. Retirements were categorized into three groups: full retirement due to severe heart disease, full retirement due to other diseases and proportional. Causes of death were obtained from death certificates. Mortality rates, survival and the presence of matching diagnoses between retirement and death were evaluated. Chi-square, log-rank, Cox models, Kaplan-Meier curves were utilized. Statistical significance with a 95% confidence interval, considering p&lt;0.05. Results: There were 630 retirements, 368 (51.4%) in females, with an average age of 52.9 (SD=7.8) years, and 169 (26.8%) deaths. Mortality was higher in professors (37.0%; p=0.113), in the age group between 65 and 70 years (48.4%; p=0.004), in males (34.0%; p=0.001), and in full retirements due to severe heart disease (41.5%; p&lt;0.001). Matching diagnoses between retirement and death were more frequent in professors (74.1%; p=0.026) and in full retirements due to severe heart disease (72.7%; p&lt;0.001). Conclusions: Severe heart disease diagnosis is associated with higher mortality and shorter survival in disabled retirees. Its frequent occurrence in retirement and death diagnoses underscores its significance in this context.

Protection against accidents for persons entitled to agricultural retirement pensions who did not stop conducting agricultural activities

The purpose of this study is to show the desired direction of changes in the accident component of social insurance of farmers, in order to provide protection against accidents to everyone at risk of accident during agricultural work. This need is dictated primarily by the statutory changes implemented in 2022 in which those entitled to agricultural retirement pensions can combine receiving a full agricultural retirement with no restrictions on conducting agricultural activities on their farm, but no longer subject to accident insurance. The objective of each social insurance system should be to provide protection in the form of social insurance benefits to persons conducting specific activities. Such benefits are supposed to guarantee that the requirements the legislator considers of essential social importance are satisfied. Undoubtedly, one of these is insurance coverage of persons liable to accidents during agricultural work by introducing separate regulations in this respect in the provisions concerning social insurance of farmers. Hence the need to consider these changes. Keywords: one-time compensation, social insurance of farmers

HOW ELDERLY PEOPLE INTERACT AFTER THEIR RETIREMENT WITH THE COVID-19 ERA IN JAPAN

Abstract Amid the COVID-19 pandemic, little is still known about how older Japanese people socialize after retirement. This paper aims to describe the dynamics of social interactions in post-retirement older adults during the COVID-19 pandemic. From January to March 2021, we interviewed 17 Japanese elderly people in Fukuoka and Ehime who were over 65 and have already retired. Face-to-face Interviews were conducted using a semi-structured questionnaire. After the initial transcripts were translated from Japanese to English, we checked the transcripts for accuracy and coded for analysis. The participant’s mean age was 71 years old while their retirement’s mean age was 60 years old. Only one participant had full retirement while the rest were partial retired which they continued to work as part-time workers either with new employers or with the same employers. All participants reported that their social interaction became estranged after retirement, and disrupted during the COVID-19 pandemic. However, participants communicated online and/or interacted face-to-face with (1) neighboring people as a member of community association or volunteers, (2) ex-work colleagues, (3) old schoolmate, (4) their children and/or grand-children, (5) friends with the same hobbies. Following factors that may affect the interactive behavior of Japanese older people were identified; (1) Japan’s healthcare policy and pension system, (2) individual’s socio-economic status, (3) family structure and living arrangement, (4) community’s characteristics, (5) individual’s psychological, cognitive and health status, and (7) individual’s personality. Comparisons of social interactions between Japanese and US older adults will be important to find new knowledge for preventing social isolation.

Working hours, social engagement, and depressive symptoms: an extended work-life balance for older adults

BackgroundIn recent years, researchers have been examining the impact of work-life balance (WLB) on mental health, considering it as a potential risk factor. However, it remains unclear whether the traditional understanding of WLB applies to older adults who worked for fewer hours before full retirement and whose children are likely to be independent adults. Therefore, this study aims to propose a modified form of WLB specifically for older adults. Within this context, we hypothesize that an optimum balance between working hours and social engagement protects against depressive symptoms among older adults.MethodWe conducted an analysis using data on 5,751 Korean adults older than 55 years from the Korean Longitudinal Study of Aging 2016. Multivariate logistic regression analysis was used to evaluate the relationships among working hours, social engagement, and depressive symptoms.ResultsOlder adults who worked fewer than 35 h per week were less likely to experience depressive symptoms than were non-working older adults and those working 35 h or more per week. Additionally, older adults with a high level of informal social participation, thus occurring almost every day or two to three times per week, were less likely to experience depressive symptoms than were those with a low level of such participation (once a month or less). Furthermore, depressive symptoms were less frequent among those who worked fewer than 35 h per week and engaged in a high level of informal social participation compared to non-working older individuals and those with a low level of informal social participation.ConclusionsMaintaining an optimal number of working hours and degree of social engagement are necessary to minimize the risk of depressive symptoms in older adults. Based on these findings, we suggest that fulfillment for work and life and their balance are important for older adults and propose work–life fulfillment balance.

The health consequences of returning to work after retirement: Evidence from a Japanese longitudinal survey

Prolonged and active old age provides individuals with more chances to work again after full retirement. Returning to work is an increasingly common form of the retirement process and influences the sustainability of social security systems. Previous studies show a beneficial relationship between returning to work and health; however, little is known about the causal effect of returning to work on health. This study used data from men and women aged 50 and older (11,991 individuals) in the Longitudinal Survey of Middle-aged and Older Adults, conducted annually from 2005 to 2019 in Japan. The effects of three types of labor force transitions (continued work, full retirement, and return to work) on physical and mental health were examined. To obtain the causal effects, an instrumental variable approach was used by exploiting the Japanese pension reform and labor market settings as instruments. Compared with full retirement, returning to work showed significantly worse mental health but no significant difference in physical health. The negative effect of returning to work was pronounced among men, former nonmanual workers, and low-wealth individuals. Contrary to the findings in previous studies, insignificant or detrimental effects of returning to work were found in this study. The rigorous causal analysis adds new evidence to the literature. The findings provide important implications for labor and health policy in aging societies.

The Physician Anesthesia Workforce in Canada From 1996 to 2018: A Longitudinal Analysis of Health Administrative Data.

A robust anesthesia workforce is essential to the provision of safe surgical, obstetrical, and critical care but information describing the physician anesthesia workforce and volume of clinical services delivered in Canada is limited. This study examines the Canadian physician anesthesia workforce, exploring trends in physician characteristics and activity levels over time. Practice patterns of specialist anesthesiologists and family physician anesthetists (FPAs) working in urban and rural communities were of particular interest. Physicians who provided anesthesia care between 1996 and 2018 were identified using health administrative data from the Canadian Institute of Health Information (CIHI). In addition, data from the Canadian Post-MD Education Registry (CAPER) were used to characterize physicians pursuing postgraduate anesthesia training (1996-2019). Descriptive analyses of physician demographics, training, location, specialty designations, and volume of clinical services were undertaken. Between 1996 and 2018, the anesthesia workforce grew 1.8-fold to 3681 physicians, including 536 FPAs. Over the same time, nerve block services increased 7-fold, and payments for other anesthesia services increased 5-fold. The average age of the anesthesiology workforce increased by 2.3 years and the annual retirement rate was 3%. The workforce has become more gender balanced but remains predominantly male (73% in 2018). The proportion of physicians who were trained internationally (about 30%; 38% in rural areas) remained stable (and higher than that in the overall physician workforce). FPAs provided most anesthesia care in rural Canada and their attrition rate was generally 2- to 3-fold higher than specialists. Physicians in the rural anesthesia workforce provided anesthesia services more intensively over time. Relatively few FPAs who left the anesthesia workforce entered full retirement and they instead contributed other medical services to their communities. This study provides foundational information regarding anesthesia workforce capacity over a 22-year period, including insights into demographics, locations of practice, and clinical volumes. The results do not quantify the gap between service capacity and need; however, they support the need for a national workforce strategy to achieve equitable access to sustainable anesthesia services in Canada, particularly for rural communities.

Retirement Pathways' Effect on Physical and Mental Health: Evidence from Japan.

Few studies have used rigorous causal analysis to examine the difference in health effects between abrupt and gradual transitions from full-time employment to full retirement. Data were obtained from 10,253 individuals aged 50 years and older from the 2005-2019 Longitudinal Survey of Middle-aged and Older Adults conducted in Japan. An instrumental variable approach was used to determine the causal relationship between retirement pathways and health by exploiting the public pension eligibility age as the instrument. Abruptly retired individuals were more likely to have physical limitation and less likely to have depression than those not yet retired. In contrast, those who fully retired through a gradual transition were less likely to have physical limitation and more likely to have depression than those not yet retired. Retirement pathways have different effects on physical and mental health, providing important implication for labor and health policies in aging societies.

Optimal policies in an ageing society

We analyze optimal social security in an overlapping generations model with demographic change and endogenous retirement. Households choose to spend the second period of their lives in full retirement if the tax rate on labor income exceeds a threshold. This threshold is increasing in life expectancy and decreasing in the fertility rate, which implies that both types of demographic change increase the relevance of the partial retirement case: both an increase in life expectancy and a drop in fertility imply that retirement is delayed. We also show that when the government decides about retirement, the command optimum can be replicated through social security policies if the laissez-faire equilibrium features capital overaccumulation. When households decide about their retirement themselves, however, replication of the command optimum is not possible. In both cases, it is optimal to expand social security when longevity increases and to reduce it when fertility drops.

ACCOUNTING FOR SOCIAL SECURITY CLAIMING BEHAVIOR

AbstractWe study why Social Security benefit claiming is concentrated at two ages, 62 and the full retirement age, and provide three main findings. First, we show that claiming behavior can be well explained by a parsimonious life‐cycle model with fully rational agents. The two key mechanisms are (i) the strong unwillingness to hold annuities and (ii) the effects of the earnings test. Second, we show that current rules distort claiming and labor supply decisions, and eliminating these distortions results in large welfare gains. Finally, we show that claiming decisions can be used to sharpen the identification of important preference parameters.

How Social Security Reform Affects Retirement and Pension Claiming

A reform increasing the full retirement age (FRA) by one year leads to larger than expected delays in pension claiming and retirement, while making late claiming more lucrative leads to a smaller than expected delay in pension claiming. Survey evidence shows people view the FRA as the “normal” retirement age and prefer to couple pension claiming and retirement decisions together, even though these two decisions are not coupled through social security provisions. Two mechanisms are at work: reference dependence with loss aversion in pension claiming, and spillovers from pension claiming on retirement choices. The FRA increase leads to large government savings. (JEL H55, J26)

The Forward-Looking Effect of Increasing the Full Retirement Age

Abstract This paper analyses the effects of increasing the statutory retirement age for claiming full pension benefits on the labour force participation of middle-aged individuals and their partners. Identification relies on a difference-in-differences setting that exploits the heterogeneous increase in age eligibility for retirement caused by an unexpected pension reform. We detect a rise in the participation rate of middle-aged women that spills over into the labour supply of their husbands, who choose to postpone their retirement. The overall labour supply response has important implications for the extent of the fiscal externality associated with pension reforms that increase the retirement age.

Retirement risk factors, exercise management and muscle mass in US senior horses.

Information on the management and health of US senior horses (≥15 years of age) is currently limited. Provide information on (1) primary use of US senior horses, (2) reasons and risk factors for horse retirement, (3) exercise management, (4) prevalence of low muscle mass and (5) risk factors for, and owner-perceived consequences of, low muscle mass. Online survey. Survey responses from 2717 owners of U.S.-resident senior horses (≥15 years of age) were analysed descriptively and inferentially, using ordered and binomial logistic regression, ANOVA and the Kruskal-Wallis test. The most frequently reported primary uses were pleasure riding/driving (38.5%) and full retirement (39.8%). Most horses (61.5%) were retired between 15 and 24 years of age, with health problems being the main reason. Age, female sex, Thoroughbred breed and various medical conditions were identified as risk factors for retirement. In working horses (i.e., those not retired or semi-retired), exercise intensity was negatively associated with age. The owner-reported prevalence of low muscle mass in all horses was 17.2% (95%CI = 15.7-18.7). In those affected by low muscle mass, the ability to work and welfare-related aspects were commonly perceived to be impaired. Increasing age, sex (gelding), pituitary pars intermedia dysfunction, osteoarthritis, laminitis and primary use (retired and semi-retired vs. use for competition) were identified as risk factors for owner-reported low muscle mass. Potential response, recall and sampling bias. Causal relationships cannot be established. Although structured exercise into old age may provide health benefits (as seen in elderly people), a large proportion of horses were fully retired in the current study. Senior horses were mainly retired for health problems and characterising these problems may aid in extending their work/active life. Low muscle mass was perceived to affect horses' welfare and ability to work, and identification of prevention and treatment strategies is therefore warranted.

The effects of changes in social security’s delayed retirement credit: Evidence from administrative data

The delayed retirement credit (DRC) increases monthly OASI (Old Age and Survivors Insurance) retired worker benefits for primary beneficiaries who claim after their full retirement age (FRA). For many years, the DRC was set at 3.0 percent per year (0.25 percent monthly). The 1983 amendments to Social Security more than doubled this actuarial adjustment to 8.0 percent per year, with the changes phased in gradually over time. In this paper, we use administrative data from the Social Security Administration (SSA) to estimate the effect of this policy change on individual claiming behavior and labor supply. We focus on the first half of the DRC increase (from 3.0 to 5.5 percent) given changes in other SSA policies that coincided with the later increases. Our findings demonstrate that the increase in the DRC led to an increase in delayed claiming of Social Security benefits among men and strongly suggest that the effects were larger for those with higher lifetime incomes, who would have a greater financial incentive to delay given their longer life expectancies. Furthermore, liquidity constraints play an important role in responsiveness to DRC increases. We do not find evidence of changes to the claiming behavior of women or to labor supply for either men or women.

‘Earned, not given’? The effect of lowering the full retirement age on retirement decisions

This paper analyzes behavioral responses to a 2014 reform in the German public pension system that lowered the full retirement age (FRA) of individuals with a long contribution history by up to two years and framed the new FRA as reference age for retirement. Using administrative data from public pension insurance accounts, we first document a substantial bunching response at the FRA exceeding the control group’s bunching by 83%. Second, we show in a difference-in-difference setting that a 1.0 year decrease in the FRA leads to a reduction in the average pension claiming age by 0.3–0.4 years. Treated individuals neither have poorer health nor are more likely to be liquidity-constrained than individuals in the control group. Our results suggest that the strong responses to the reform are driven both by the new FRA serving as a reference point and by financial incentives. Estimated fiscal costs of the reform are at the upper end of the range of previous back-of-the-envelope calculations.

Practical Applications of Optimal Claiming of Social Security Benefits

In <ext-link><bold><italic>Optimal Claiming of Social Security Benefits</italic></bold></ext-link>, from the Winter 2023 issue of <bold><italic>The Journal of Retirement</italic></bold>, authors <bold>Steven Diamond</bold> of <bold>Gridmatic</bold>, <bold>Stephen Boyd</bold> and <bold>Mykel Kochenderfer</bold> of <bold>Stanford University</bold>, <bold>Andrew Ang</bold> of <bold>BlackRock</bold> and <bold>David Greenberg</bold> show that when an individual’s wealth is above a certain threshold, they should defer claiming Social Security. Using a life-cycle framework, the authors compute wealth to primary insurance amount (PIA) ratios and provide thresholds to aid in this decision-making process (the PIA is the monthly benefit one would receive at full retirement age). The authors explain how an individual’s monthly Social Security benefit payment amount is based, in part, on the age at which they elect to begin their benefit payments. This decision of when to begin claiming benefits is both highly complex and important because it determines income for the rest of a claimant’s life. One can begin collecting benefits as early as age 62 and as late as age 70, and the longer one waits, the larger the monthly benefit payment will be.