Full Retirement Research Articles

Occupational differences in disability retirement due to a shoulder lesion: do work-related factors matter?

ObjectiveTo identify occupations with a high risk of disability retirement due to a shoulder lesion and to examine the effect of physical and psychosocial work-related factors on occupational differences in disability retirement.MethodsWe followed Finnish wage earners aged 30–59 years (n = 1,135,654) from 2005 to 2014 for full disability retirement due to a shoulder lesion. The work-related exposures were assessed with job exposure matrices. We calculated age-adjusted incidence rates and hazard ratios to test for the association between occupation and disability retirement due to a shoulder lesion. We also examined the contribution of work-related exposures to the excess risk of disability retirement.ResultsAs compared to professionals, the age-adjusted risk of disability retirement was increased among men in all occupational groups except managers and customer service clerks and among women in several occupational groups. Adjustment for education attenuated the occupational differences considerably, particularly among women. The physical work-related factors fully explained the excess risk of disability retirement due to a shoulder lesion among male finance and sales associate professionals and administrative secretaries as well as among agricultural and fishery workers. In women, the physical work-related factors fully explained the excess risk among construction workers, electricians and plumbers. For both genders, the contribution of psychosocial factors to excess risk of disability retirement was modest and seen for monotonous work only.ConclusionsA reduction of the level of physical work load factors as well as monotonousness of work has a potential to prevent work disability due to a shoulder lesion.

Time devoted to home production and retirement in couples: A panel data analysis

We analyse the effects of retirement of one partner on time devoted to home production by both partners in a couple. Using longitudinal data on couples in Germany, we control for fixed household specific effects and allow for endogeneity of retirement using both a regression discontinuity approach and variation in the early and full retirement age across cohorts and with labour market history. Furthermore, we separately estimate the effect of retirement and the effect of lay-off due to an exogenous shock (i.e. plant closure) for each spouse. For both men and women, a transition from work to retirement significantly increases the amount of their own home production. Similar effects are found for other (layoff induced) exits from work. We find much smaller negative cross-effects of retirement or other exits from work on time spent on home production done by the male partner; the effect of the husband's retirement on the wife's home production is not statistically significant.

The Impact of Social Security on Pension Claiming and Retirement: Active vs. Passive Decisions

We exploit a unique Swiss reform to identify the importance of passivity, claiming social security benefits at the Full Retirement Age (FRA). Sharp discontinuities generated by the reform reveal that raising the FRA while imposing small early claiming penalties significantly delays pension claiming and retirement, but imposing large penalties and holding the FRA fixed does not. The nature of the reform allows us to identify that between 47 and 69% of individuals are passive, while imposing additional structure point identifies the fraction at 67%. An original survey of Swiss pensioners reveals that reference-dependent preferences is the main source of passivity.

Identification and Estimation of Intensive Margin Effects by Difference-in-Difference Methods

Abstract This paper discusses identification and estimation of causal intensive margin effects. The causal intensive margin effect is defined as the treatment effect on the outcome of individuals with a positive outcome irrespective of whether they are treated or not, and is of interest for outcomes with corner solutions. The main issue is to deal with a potential selection problem that arises when conditioning on positive outcomes. We propose using difference-in-difference methods - conditional on positive outcomes - to estimate causal intensive margin effects. We derive sufficient conditions under which the difference-in-difference estimator identifies the causal intensive margin effect. We apply the methodology to estimate the causal intensive margin effect of reaching the full retirement age on working hours.

How Sticky is Retirement Behavior in the U.S.? Responses to Changes in the Full Retirement Age

We study how increases in the Social Security full retirement age (FRA) affect benefit claiming and retirement behavior, and specifically the interaction between these two choices. Using Social Security administrative data, we implement complementary research designs of a traditional cohort analysis and a regression-discontinuity design. We find that while increases in the FRA strongly and immediately shift claiming ages, retirement ages exhibit persistent 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 of a role for employers in individuals' responses to the FRA.

Postponing Retirement and Social Security in a Two Sector Model

Pay-as-you-go (PAYG) social security schemes in the OECD countries are facing solvency problems, as people are living longer and birth rates have declined. Postponing the full retirement age (FRA), when retirees are entitled to full pension, has been proposed as a solution. This effectively lowers the payroll tax rate since pension is paid only in the post-FRA period. In a two-period two-sector overlapping generations model, I show that this shift lowers savings (because a part of the expected old age income is consumed in the first period), as employment increases. In the transition to the new steady state, capital is decumulated and the wage rate falls. Contrast this with a reduction of the payroll tax rate where the initial old suffer reduced consumption, but the young have higher post-tax income and this spurs capital accumulation.

The Impact of Social Security on Pension Claiming and Retirement: Active vs. Passive Decisions

We exploit a unique Swiss reform to identify the importance of passivity, claiming social security benefits at the Full Retirement Age (FRA). Sharp discontinuities generated by the reform reveal that raising the FRA while imposing small early claiming penalties significantly delays pension claiming and retirement, but imposing large penalties and holding the FRA fixed does not. The nature of the reform allows us to identify that between 47 and 69% of individuals are passive, while imposing additional structure point identifies the fraction at 67%. An original survey of Swiss pensioners reveals that reference-dependent preferences is the main source of passivity.

Sensory-cognitive associations are only weakly mediated or moderated by social factors in the Canadian Longitudinal Study on Aging

Sensory and cognitive function both tend to decline with increasing age. Sensory impairments are risk factors for age-related cognitive decline and dementia. One hypothesis about sensory-cognitive associations is that sensory loss results in social isolation which, in turn, is a risk factor for cognitive decline. We tested whether social factors are associated with cognitive and sensory function, and whether sensory-cognitive associations are mediated or moderated by social factors. We used cross-sectional data from 30,029 participants in the Canadian Longitudinal Study of Aging, aged 45–85 years, who had no reported cognitive impairment or diagnosis of dementia. We found strong independent associations of self-reported social variables with hearing (pure-tone audiometry), vision (pinhole-corrected visual acuity), and executive function and weaker associations with memory. The moderating and mediating effects of social variables on sensory-cognitive associations were weak and mostly non-significant, but social factors could be slightly more important for females and older people. Partial retirement (relative to full retirement or not being retired) may have protective effects on cognition in the presence of hearing loss. These findings confirm the association between social factors and sensory and cognitive measures. However, support is weak for the hypothesis that social factors shape sensory-cognitive associations.

Social Security Retirement Policy in Canada and the United States: Different Reforms, Different Outcomes

For many years, social security retirement pensions were subject to similar entitlement conditions in Canada and the United States. However, over the past 20 years, Canadian and US social security policy has diverged on the conditions to become entitled to a retirement pension, including the full retirement age. These divergent policies have been associated with different outcomes with respect to the age at which social security benefits are claimed, the age at which workers leave employment, and the extent of part-time work at older ages. Policy reforms and experience in the two countries are reviewed. Before concluding, we examine other factors (education, unemployment, and private pensions) that could also explain behavioral differences.

One-year changes in self-reported napping behaviors across the retirement transition

ObjectiveTo estimate associations of retirement with self-reported frequency and duration of naps. DesignProspective cohort study. SettingPopulation-based. Participants1359 current and former Wisconsin state employees, aged 54-69. MeasurementsFour annual surveys mailed between 2010 and 2014 elicited employment status and nap characteristics. Changes in employment status and nap characteristics were identified from survey pairs measured 1 year apart (up to 3 survey pairs per subject). General linear mixed models with repeated measures were used to estimate changes in minutes napped per week (MNPW), weekly nap frequency, and individual nap duration as predicted by retirement transitions vs stable employment status. All models were adjusted for demographic characteristics, self-rated health, medical diagnoses, sleep problems, circadian preference, and change in nocturnal sleep duration. ResultsThere were 3101 survey pairs in the analytic sample. Full retirement (transition from working ≥35 h/wk to not working for pay) over a 1-year period predicted a statistically significantly larger mean change in MNPW than stable employment status: mean (95% confidence interval) = +48 (+16, +80) MNPW. Associations between staged retirement transitions (from full-time to part-time work, or from part-time work to full retirement) and 1-year changes in MNPW were not statistically significant. The MNPW changes associated with full retirement were attributable to nap frequency increase of +0.4 (+0.1, +0.8) d/wk; nap duration did not change significantly. ConclusionsCompared with stable employment status, full retirement is associated with an average 1-year increase of +48 MNPW. This change is attributable to a frequency gain of 0.4 d/wk napped. Changes in nap duration were negligible.

CULTURAL DIMENSION OF THE DISCREPANCY OF PLANNED AND ACTUAL RETIREMENT AGE IN THE U.S.: HISPANICS VERSUS NON-HISPANICS

The sustainability problems to the SS has led to a glowing debate about what the full retirement age should be and if working longer is a plausible option for everyone or just for those who have some control over their retirement decisions (e.g., Munnell & Sass, 2008; McNamara & Williamson, 2013; Munnell et al, 2016). All ethno-racial groups have increased their average retirement age over the last years. However, Hispanics’ retirement age is still lower even if they stated they plan to continue to work at retirement (EBRI 2008; Diaz-Valdes, 2018). Most studies about retirement timing have focused on middle-class Whites, and the prediction of planned or actual retirement separately. One of the lesser studied complexities of the retirement conundrum concerns ethno-racial differences and cultural-related predictors of retirement timing (Lytle et al, 2015). This study seeks to extend the understanding of differences between Hispanics and non-Hispanics regarding the timing of retirement relative to when they thought they would retire by including a broad array of cultural and family related predictors. Multinomial regression models were used. The results indicate significant differences between Hispanics and non-Hispanic Whites. Taking care of grandchildren was a significant predictor among Hispanics but not among non-Hispanic Whites. For Hispanics taking care of grandchildren, for over 20 hrs., was associated with a decreased probability of stating they will never retire. The increase of one dependent was associated with an increased on the probability of retiring earlier than planned. The effect of one additional dependent was larger for non-Hispanics.

Retirement Prospects for the Millennials: What Is the Early Prognosis?

Various policy developments and long-term economic, social, and demographic trends raise worrisome questions about the financial security of future retirees. An erosion in employer-sponsored defined benefit pension coverage and the increase in Social Security’s full retirement age could shrink future benefits. Stagnating employment and earnings for men could threaten future retirement security, because retirement benefits and the capacity to save depend on lifetime earnings. The financial crisis, Great Recession, and collapse of the housing market in the second half of the previous decade could significantly disrupt retirement savings. This paper assesses retirement prospects for future generations, with a special focus on the late Generation-X and Millennial generations. Because retirement outcomes depend on how much people earned and saved when they were younger, the analysis compares trends in employment, earnings, pension coverage, and wealth during working ages across cohorts, using data from the Current Population Survey and the Survey of Consumer Finances. The analysis also projects age-70 incomes for future generations using DYNASIM4, the Urban Institute’s dynamic microsimulation model. This paper found that: - Many recent trends threaten future retirement security, including continuing declines in men’s employment before age 55, stagnating median earnings for men, and a sharp decline in median household wealth after 2007. - Other trends are more encouraging. Gen-X and Millennial women worked and earned more in their 20s and 30s than now-retired women did at those ages, and Millennial men and women are much more likely to have a four-year college degree than previous cohorts. - Projections show that median age-70 income will be higher for Gen-Xers and Millennials than previous generations as earnings grow over time. - However, a larger share of retired Gen-Xers and Millennials will be unable to replace at least three-quarters of their pre-retirement earnings, according to the projections, and will see their living standards decline when they retire. The policy implications of this paper are: - How employment, earnings, and savings patterns evolve over the next three decades will shape Millennials’ retirement incomes. - Policy choices regarding retirement programs, especially strategies to address Social Security’s long-term financing gap, will significantly affect the retirement security of future generations.

How often do partial disability pensioners end up on a full disability pension?

Abstract Background Extending working lives and deferring retirement have been important topics of discussion in recent years. Full disability pensioners seldom work, but most partial disability pensioners continuing working while receiving a pension. However, very little is known about how often partial disability pensioners end up on a full disability pension. The aims of this study were to investigate to what degree partial disability pensions become full disability pensions, and how age, gender, marital status, education, unemployment or a disability diagnosis are associated with that. Methods The register data included 2,969 Finns who were aged 18-59 years and whose partial disability retirement started in 2010. The follow-up period ranged from 2010 to the end of 2015. Cox models were used to estimate hazard ratios for full disability retirement. Results Approximately 40 per cent of the partial disability pensioners ended up on a full disability pension during the follow-up period. Partial disability pensioners who were older, had a lower educational level or a history of unemployment, or who suffered from mental disorders ended up on a full disability pension more often than others. The risk of full disability retirement was 1.5-fold among those with mental disorders compared to those with musculoskeletal diseases. Conclusions Partial disability pensioners with a low education, a history of unemployment or who suffer from mental disorders experience a higher risk of ending up on a full disability pension. More focus should be paid to improving education, preventing mental health problems and unemployment in order to help the disabled work longer. Key messages Preventing partial disability pensioners from ending up on a full disability pension can extend their working lives. Partial disability pensioners with a low education, a history of unemployment or poor mental health more often stop working altogether. More focus should be paid to improving these issues.

Building a Sustainable Construction Workforce.

The average U.S. construction worker is aged 42.6 years, and will not be eligible for full Social Security retirement benefits until age 67. Delayed retirement is largely driven by economic need, but construction workers face considerable challenges in remaining on the job. This study explores trade-specific age trends within the construction industry, and the experiences of building trade unions with aging membership. A mixed-methods approach used trade-specific age statistics from the Current Population Survey and key informant interviews with labor leaders, in order to identify union experiences and interventions. Mean and median ages for all subgroups in construction increased from 2003 to 2017. Immigrant construction workers were significantly younger than workers who were born in the U.S. (41 vs. 43, p < 0.001). Union workers were older than non-union workers (42 vs. 39 in 2017, p < 0.001); the age differential between self-employed and wage-and-salary workers was wide (49 vs. 40, p < 0.001). Union leaders described barriers, such as age discrimination and the loss of previously available light tasks, as well as current and potential solutions through union contract language requiring the inclusion of older workers, or establishing limits for lifting. Other solutions included career pathways for training and safety, with their attendant limitations; mentoring/pairing opportunities with apprentices; and the potential opportunities and training needs for site management positions.

Structural Social Support and Changes in Depression During the Retirement Transition: "I Get by With a Little Help from My Friends".

This study evaluated whether (a) retirement was associated with increased depressive symptoms, (b) four sources social support were associated with decreased depressive symptoms, and (c) whether the relationship between retirement and depressive symptoms varied across four sources social support. Health and Retirement Study data were used to assess whether four measures of structural support moderated the association between transitioning to full retirement (relative to remaining in full-time work) and symptoms of depression. Results from two-stage mixed-effects multilevel models indicated (a) on average retirement was associated with a small but significant increase in depressive symptoms after adjusting for preretirement social support, (b) on average, social support not associated with changes in symptoms of depression, but (c) social support from friends moderates the association between retirement and symptoms of depression such that at low levels of social support, retirement was associated with a sizeable increase in depressive symptoms, but this association decreased as level of social support from friends increased. Results suggest people with low levels of social support may benefit from actively cultivating friendships in retirement to help mitigate some of deleterious effects of retirement.

Physical and psychosocial work exposures as risk factors for disability retirement due to a shoulder lesion

ObjectiveTo assess the longitudinal associations of physical and psychosocial exposures with disability retirement due to a shoulder lesion.MethodsIn a nationwide register-based study, we followed 1 135 654 wage earners aged...

Bridge employment and full retirement intentions: the role of person-environment fit

PurposeThe purpose of this paper is to explore the relationship between different categories of person–environment (P–E) fit and two types of retirement intentions (i.e. full retirement and bridge employment).Design/methodology/approachData were collected from a convenience sample of 357 executives aged 50 and over, employed in French private sector companies. Hypotheses were tested using structural equation modeling.FindingsPerceptions of value congruence at vocational level and needs and supplies fit at organizational and job levels were positively related to the intention to hold bridge employment after retirement. The fit between older worker’s abilities and job demands was positively related to the two types of retirement intentions.Originality/valueThe complexity of retirement transition is taken into account with the introduction of two types of retirement intentions. P–E fit is shown to be an antecedent of career intentions after retirement.

Will They Take the Money and Work? An Empirical Analysis of People's Willingness to Delay Claiming Social Security Benefits for a Lump Sum

This paper investigates whether exchanging the Social Security delayed retirement credit, currently paid as an increase in lifetime annuity benefits, for a lump sum would induce later claiming and additional work. We show that people would voluntarily claim about half a year later if the lump sum were paid for claiming any time after the Early Retirement Age, and about two-thirds of a year later if the lump sum were paid only for those claiming after their Full Retirement Age. Overall, people will work one-third to one-half of the additional months, compared to the status quo. Those who would currently claim at the youngest ages are likely to be most responsive to the offer of a lump sum benefit.

Multimorbidity and the Transition Out of Full-Time Paid Employment: A Longitudinal Analysis of the Health and Retirement Study.

ObjectivesThis study aims to examine whether older workers aged 50–64 years with multimorbidity are at increased risk to transition from full-time paid employment to part-time employment, partial retirement, unemployment, disability, economic inactivity, full retirement or die than workers without a chronic health condition and workers with one chronic health condition, and whether socioeconomic position (SEP) modifies these transitions.MethodUsing data from the Health and Retirement Study (1992–2014; n = 10,719), sub-distribution hazard ratios with 95% confidence intervals were calculated with a time-varying Fine and Gray competing-risks survival regression model to examine exit from full-time paid employment. We investigated the modifying effect of SEP by examining its interaction with multimorbidity.ResultsWorkers with multimorbidity had a higher risk of transitioning to partial retirement (1.45; 1.22, 1.72), disability (1.84; 1.21, 2.78) and full retirement (1.63; 1.47, 1.81), and they had a higher mortality risk (2.58; 1.71, 3.88) than workers without chronic disorders. Compared to workers with one chronic health condition, workers with multimorbidity had an increased risk for partial (1.19; 1.02, 1.40) and full retirement (1.29; 1.17, 1.42), and mortality (1.49; 1.09, 2.04). Only SEP measured as educational level modified the relationship between multimorbidity and mortality.DiscussionWorkers with multimorbidity seem more prone to leave full-time paid employment than workers without or with one a chronic health condition. Personalized work accommodations may be necessary to help workers with multimorbidity prolong their working life.

End-of-career practice patterns of primary care physicians in Ontario.

To characterize the process of end-of-career attrition among primary care physicians. Longitudinal, open cohort, population-based study of primary care physicians using health administrative data from ICES.Setting Ontario. All family physicians providing comprehensive care between 1992 and 2013. Changes in workload and scopes of practice over time. The cohort included 15 552 family physicians who provided comprehensive care at some point during the study period. Physicians reduced workloads and narrowed scopes of practice in advance of full retirement at an average age of 70.5 (95% CI 70.1 to 70.8) years. Female physicians provided fewer clinical services than male physicians did and retired 5 years earlier. Canadian medical graduates provided fewer clinical services and retired 2 years earlier than international medical graduates did. Up to 60% of physicians stopped providing comprehensive primary care before retirement, continuing with other clinical activities, at reduced workloads, for an average of 3 years before retiring fully. End-of-career practice patterns are characterized by gradual, modest changes in the provision of services rather than abrupt declines, and the retirement process unfolds differently for different physicians. This study highlights the importance of considering physician workload, scope of practice, and demographic factors for more accurate prediction of physician retirement trends and effective work force planning.