Retirement Age Research Articles

The association between continuing work after retirement and the incidence of frailty: evidence from the China health and retirement longitudinal study

ObjectivesRetirement represents a significant life transition, with post-retirement status serving as a pivotal aspect of aging research. Despite its potential significance, little research has delved into the relationship between continuing work after retirement and the frailty. This study aims to investigate the association between continuing work after retirement and the incidence of frailty among older individuals. DesignA nationally representative cohort study. Setting and participantsWe utilized data from 4 waves (2011, 2013, 2015 and 2018) of the China Health and Retirement Longitudinal Study and a total of 5,960 participants were included in the study after applying specific inclusion and exclusion criteria. MethodsFrailty was assessed using a Frailty Index. To balance baseline covariates between workers (n = 3,170) and non-workers (n = 2,790), we employed inverse propensity of treatment weighting. The relationship between work status and the incidence of frailty was examined using Cox proportional hazards analysis, with results reported as hazard ratios and 95% confidence intervals. ResultsA total of 5,960 participants (mean age 64 years; 42.1% male) were included in the analysis. Over a mean follow-up of 6.9 years, 2,105 cases of frailty were identified. In the cohort analysis, following adjustment using the inverse propensity of treatment weighting (IPTW), continuing work after retirement showed a negative association with frailty incidence, with an HR of 0.72 (95% CI, 0.65−0.79). Subgroup analysis revealed a more significant protective effect of continuing work beyond retirement age among individuals aged 65 or older, males, smokers, and those with limited social activities. ConclusionsIn summary, this study identified a significant association between continuing work after retirement and a decreased risk of frailty. The findings underscore the potential benefits of policies promoting social engagement and extending working life in enhancing the quality of life for the aging population.

Predicting Mortality Rates and Longevity Using Cains -Blake-Dowd Model

Pension schemes and annuity providers frequently guarantee their retirement payouts until the retirees' deaths. As a result of longer life expectancies and declining rates of death in old age, trends in mortality and longevity have become evident. Academicians and actuaries have been forced to concentrate their research on mortality and longevity concerns in particular as a result of this. Instead of a provident fund, the new National Social Security Fund Act Number 45 of 2013 established a pension fund that is a requirement for every employee. Annuity service providers are exposed to the longevity risk when the scheme's participants retire. For pricing and reserving, appropriate modeling tools or projected life tables are required. In comparison to deterministic models, which were based on projected present values, stochastic models allow a variety of risk causes and components as well as pertinent effect on portfolio performance. The long term mean level of Longevity has become more uncertain exposing the annuity service providers such as assurance companies and states to the risk of uncertainty after retirement. Most industrialized countries' national security systems, pension plans, and annuity providers have revised their mortality tables to account for longevity risks due to decline mortality rates and rising life expectancy. Kenya is one of the developing nations that has seen a drop-in death rates and a rise in life expectancy recently. Since developing nations choose to take the longevity risk into account when pricing and reserving annuities because such long term mean level in mortality rates declines and increases life expectancy, particularly at retirement age, pose risks to annuity service providers and pension plans that has been pricing annuities based on mortality tables that do not take these trends into account. The stochastic aspect of mortality was ignored by earlier actuarial models used to estimate trends. The actuary will therefore likely be interested in knowing how the future mortality trend utilizing stochastic models affects annuity pricing and reserve. Demographers and actuaries have since employed a variety of stochastic methods to forecast mortality while examining a variety of stochastic model ranges. The CBD stochastic model, which was the first to take longer life expectancies into account, is now extensively used, and a number of expansions and adjustments have been suggested to stop the major characteristics of mortality intensity. The CBD model, developed by Andrew Cairn, David Blake, and Kevin Dowd, is being used in this study to fit mortality rates, forecast mortality trends, using least square method and then calculate projections for life expectancy. Regarding the longevity risk, we take into account the possibilities of computing annuity benefits by connecting the benefits to actual mortality and calculating the present value on annuities. The results of the study showed that, the CBD model can be used to forecast mortality rates where parameters estimating the CBD model are performed using the bivariate random walk (drift).

Economic impact of retirement on the elderly population: a literature review

ABSTRACT This literature review examines the economic impact of retirement policies on the elderly, focusing on labor supply, consumption, and health. The aging global population pressures public pension systems, prompting reforms like increasing retirement age and reducing benefits, which significantly affect labor supply, demand, and economic growth. The review discusses the effects of retirement age and pension changes on labor supply, the ‘retirement-consumption puzzle,’ where consumption declines at retirement due to changes in time cost and health shocks, and mixed health outcomes post-retirement influenced by health behaviors. China’s fixed retirement policy offers a unique context for studying these effects, highlighting gender-specific impacts. The review emphasizes the need for balanced retirement policies that consider financial sustainability and health implications, promoting retirees’ consumption levels. This comprehensive analysis aids in evaluating retirement policy reforms’ costs and benefits across different institutional contexts.

On the Issue of Human Capital of the Working Older Generation of Modern Russia

Practice has shown that the onset of retirement and pre-retirement age in modern Russia adds new problems to the working older generation, caused by significant changes in lifestyle and new views on human labor activity. The implemented pension reform in Russia, which added five years to the day of retirement, significantly exacerbated the problems associated with the employment of people of retirement age. The article offers scientifically based recommendations for increasing human capital at the expense of the working older generation, taking into account regional and other characteristics. In modern conditions, human capital can play an important role in solving many problems during the military conflict between Russia and Ukraine, especially in increasing the military-industrial potential of our state. In conditions of labor shortage, experienced personnel of engineers, technologists, managers can significantly strengthen Russian industrial and other enterprises

Fleet vehicle replacement strategy in the Korean market under phase-out of conventional vehicle

With the recent global requirements to phase out internal combustion engine vehicles (ICEVs), fleet owners (FOs) must consider battery electric vehicles (BEVs) as replacements, introducing regulatory risk due to policy changes. Many countries have legal retirement age limit for fleet vehicles (FVs), considered as policy constraint necessitating eventual replacement. Additionally, uncertainties like fuel price of ICEV and battery price affect the replacement decision. This study proposes an optimal replacement strategy using real option approach for annual decision-making under multiple risk factors. Using data from the Korean FV market, we provide managerial implications. Despite optimistic battery price projections, voluntary BEV switching is not expected to exceed 40% of total FVs. Sensitivity analysis reveals that adjusting the legal retirement age is more effective than changing the BGVSP implementation year. Also, A flexible subsidy based on fuel prices and the extension of the legal retirement age limit through safety inspections should be recommended.

Older workers and extended working life - Managers' experiences and age management.

In 2020 the Swedish Government started a gradual raising of the retirement age, but employers have been silent on the issue. Little is known about whether and how they reflect on what it will mean for their organization, or whether they already have, or are going to, make arrangements in order to facilitate and motivate older workers to stay longer. The aim of this study was to explore and describe managers' experiences of older workers and age management in connection with the increase of the retirement age in Sweden. Data was collected through semi-structured interviews with fourteen managers from a broad set of organizations in the public and private sectors, and from the Middle and East of Sweden. The transcribed material was analysed in line with qualitative content analysis. The analysis ended up in seven main categories with associated sub-categories: Older Workers, Retirement Ages, Transition Initiatives, Competence Transfer, Competence Development, Increased Retirement Ages, Knowledge Gaps. Our findings reveal that there is an ambivalence in addressing the issue of age among the interviewed managers, what we have interpreted and labelled as "silent age discrimination", and it was shown that they do not have elaborated strategies for age management.

Modern conditions for reproduction of the educational potential of the Russian workforce

The relevance of the research is related to the need to substantiate the specifics of reproduction of the educational potential of workforce as a key resource that ensures generation of new knowledge, its successful implementation into practice, and innovative development of domestic enterprises. The purpose of the article is to identify and analyse modern conditions for the reproduction of the educational potential of the workforce. The research methodology is based on the use of an integrated and systematic approach to determining them, comparative and statistical methods of analysis. As conditions for the formation of the educational potential in the post-industrial era, the article considers: demographic conditions, globalisation, formation of a unified information space, and digitalisation of the economy, increasing demand for skilled labour, accelerated development of the service sector, and increase in labour migration. The results of the analysis show that in Russia, the reproduction of the educational potential is hampered as a result of the demographic crisis manifested in the continuation of the trend towards natural population decline and an increase in the number of people of retirement age; increase in the scale of external migration of skilled labour; average level of Internet accessibility to the population, and, as a result, insufficient formation of its digital skills. Attention is focused on the growing need of the national economy for personnel with a high educational and qualification level, digital skills, and information culture due to the formation of a unified information space and digitalisation of the economy, accelerated development of the service sector, globalisation, and the increasing role of universities in shaping the general culture of the population. The prospects for further research are to develop an organisational and economic mechanism for reproducing the educational potential of the workforce.

Innovative approaches to reforming the pension insurance system of Ukraine: background of foreign countries

One of the most important tasks for any civilized state is to care for the elderly. The collection of various forms of financial support for individuals who have reached the retirement age set by law or have lost their ability to work through centralized insurance or budgetary funds has existed for a long time. This led to the creation of a pension insurance system covering all citizens. The primary goal of such a system is to prevent poverty due to the loss of working ability due to age. Reforming the domestic pension system has been ongoing for more than 20 years. However, it has not yet ensured the implementation of a three-pillar pension system in Ukraine. This requires a more detailed study of the successful experiences of other countries in this field. This is of particular importance in light of the upcoming post-war reconstruction of our country. All sectors of the economy will undergo reconstruction, and it seems entirely likely that radically new paths for rebuilding will be considered, especially for the population’s social insurance system. Modern pension insurance systems operating in different countries are not alike [1]. They differ in principles and organizational foundations of functioning, coverage of participants, taxation methods and rules governing pension contributions and payments. Each pension system depends on the level and stability of the country’s economic development, traditions, social security experience, labor motivation system, tax, and labor legislation. The article is dedicated to analyzing pension systems in industrially developed countries. Studying the experience of such countries is important for Ukraine due to the necessity of creating an efficient national pension system. The article explores the current challenges and opportunities for reforming Ukraine’s pension insurance system using innovative approaches. Particular attention is paid to analyzing the experiences of foreign countries that have successfully reformed their pension systems and introduced modern pension management methods. In light of rapid demographic aging and increasing financial pressure on pension funds, the article justifies the need to transition to a multi-tiered pension insurance system.

Wealth creators or inheritors? Unpacking the gender wealth gap from bottom to top and young to old

There is growing interest in understanding how gender influences the accumulation of wealth. While prior studies focused on labor-related determinants, our research focuses on inheritances and gifts. Using unique survey data that oversamples the top 1% of wealth holders in Germany, we show that the gender wealth gap is small for individuals up to age 40, then widens, and declines for those past retirement age. Transfer amounts and their timing are important drivers of these differences: men tend to inherit larger sums than women during their working life. Women often outlive their male partners, thus receiving larger inheritances at older ages.

The Health-Employment-Longevity Nexus: Implications for Retirement Age Policies in European Countries

Abstract Background Advances in medical knowledge and technology have led to increased general and healthy life expectancy in Europe. Combined with declining fertility rates, these trends have resulted in an aging population. Many European countries have been reluctant to adjust the retirement age, putting pension funds and Pay-As-You-Go social insurance systems at risk. Linking entitlement age to life expectancy could mitigate this risk and extend working life, but such policies are politically unpopular. This study investigates the empirical relationship among self-perceived health, employment, job quality, and life expectancy in the European context. Methods The study analyzes the determinants of self-rated health using the SHARE database, combined with general and healthy life-expectancy data from EUROSTAT and, where missing, the WHO, focusing on European countries. Results In Europe, both past and present employment improve self-rated health. Job quality has a detrimental effect on self-rated health for women and a positive effect on men. Life expectancy and healthy life expectancy raise self-rated health, while poverty rates negatively affect it. Job quality is widespread among European women, and its negative effect on health rises with age. For European men, job quality has a positive effect, peaking around age 56. The effects of employment and job quality on self-rated health are simultaneous. In European countries with an elasticity >1, healthy life expectancy rises faster than general life expectancy at higher ages, suggesting an improved ability to work at older ages. This finding indicates that adjusting the retirement age could be a powerful tool for improving the sustainability of social insurance systems in Europe. Conclusions For younger European women, it may be rational to set higher retirement-age increments and put them on a declining course as they age, considering the gender-specific age dynamics and job quality effects on health. Key messages • In Europe, employment and job quality significantly influence self-rated health, with gender-specific effects that vary with age and impact retirement age policies. • Adjusting retirement age in line with healthy life expectancy could improve the sustainability of European social insurance systems, considering health-employment dynamics.

Predictors of disability retirement - a prediction model for disability pension application risk

Abstract Background Regarding the objective of preventing early exits from labor market, the late life-course years present an important timeframe. It is essential to identify the employees in the greatest risk of permanently losing their work ability. In practical applications, multifactorial models are needed to evaluate the combined effect of risk factors. In this study, the disability pension risk is modeled based on large unique register data, at the same time assessing the effect of sickness absences (SA) of different lengths. Methods We utilize a logistic model for the risk of filing a first-time disability pension application (DPA) based on register data on 222,321 Finnish municipal sector employees. The data include employment and sickness spells, occupations, and wages in 2016-2018 as covariates. During the 3-year follow-up, 2,969 employees filed a DPA. The data include also short SA spells, a novelty in these kinds of studies. DPA is used as a follow-up to include employees who receive a rejecting decision but still carry a physician’s evaluation of diminished work ability. Results The resulting model can accurately predict the risk of DPA in employee groups. Age, occupation, cumulative SAs preceding the application, and the number of SA spells of all lengths, also short ones, have a significant increasing effect on the DPA risk. Proximity of the retirement age and high earnings decrease the risk of DPA. Surprisingly gender had no effect on the risk. Conclusions The results indicate that register-based sociodemographic data is very useful in modeling the employee DPA risk in public sector employee groups. The resulting model provides a basis for tools for predicting the risk status of employee groups for the use of employers responsible for risk management and early intervention, also allowing for the assessment of economic effects of SAs and disability risk. The presented modeling results are already utilized among public sector employers in Finland. Key messages • Disability pension risk can accurately be predicted in public sector employee groups based on readily available sociodemographic register data. • All sickness absences have a significant increasing effect on the risk of disability pension application, but the effect varies greatly depending on age and occupation.

“We want to get out” – A qualitative study on reasons for nurses’ early retirement intentions

Abstract Background Nurses, the largest workforce in healthcare, play a central role in health systems. There is a severe global shortage of nurses, which is expected to worsen as a significant portion approaches retirement age. Early retirements can harm care quality and healthcare access, thus significantly impacting public health. Identifying reasons is crucial to prevent this trend. This study examined factors behind nurses’ early retirement intentions. Methods A descriptive qualitative study was conducted in an Irish hospital (July to September 2023) including individual interviews with 10 nurses aged 55 and over. A thematic analysis was conducted collaboratively by three researchers to identify key factors influencing nurses’ intentions to retire early. Results Five main themes emerged: 1) Health concerns, encompassing physical strain and psychological stress, significantly influencing early retirement intentions; 2) Struggling to balance job demands with personal responsibilities such as caring for ageing parents due to inflexible work schedules; 3) Need for more support from senior leaders to address staffing shortages and investment in aging nurses’ career and retirement planning to make staying more desirable and easier; 4) Feelings about nurses’ experience being undervalued in the evolving healthcare; and 5) Facing constant heavy responsibility in guiding new nurses, while simultaneously fearing patient safety risks and encountering generational differences. Conclusions Developing support systems for ageing nurses, encompassing strategies to ease workload strain, enhancing career opportunities, and promoting intergenerational collaboration are critical for reducing early retirement trends and sustaining a resilient healthcare workforce. By implementing tailored approaches, such as flexible scheduling and mentorship programs for ageing nurses, healthcare organisations can promote workforce longevity and enhance public health outcomes through improved care delivery. Key messages • Health challenges and struggles in work-life balance influence early retirement intentions among nurses, urging flexible work arrangements and improved recognition and leadership in healthcare. • To extend work careers, organisations must invest in ageing nurses’ career and retirement planning, value experience, and acknowledge potential challenges and benefits in intergenerational nursing.

Impact of Delay of Retirement Age on Middle Age Employment Rate

Abstract: This paper examines the implications of delaying retirement on the labor market in China, focusing on its impact on the employment rates across different age groups. Over the past several decades, demographic shifts, such as the aging population and extended education durations, have necessitated adjustments to retirement policies. These adjustments pose significant questions about the optimal retirement age and the consequent effects on the labor market. Utilizing a combination of theoretical frameworks and empirical data, this study explores the correlation between delayed retirement and employment rates among middle-aged and older workers. The findings suggest a significant and positive correlation between these groups, indicating that a delayed retirement age could enhance employment opportunities for middle-aged individuals without adversely affecting the younger workforce. The study engages with data from the 2020 census in China and employs Ordinary Least Squares (OLS) regression models to analyze the relationship between age groups and employment rates. The results show a nuanced impact of delayed retirement on the labor market, with implications for policy-making. Specifically, the paper addresses the potential benefits of a flexible retirement age policy, considering economic, demographic, and social factors.

Prediction of the Effectiveness of Deferred Retirement in the Labor Market Performance in China

Abstract: The analytical document touching upon the prospects of how delaying retirement affects labor market ability in China reveals some crucial information about the implications of the retirement age policy modifications. This test may indicate that the retirement age raise would be a huge factor in China's labor market status, such as employment level and national pension funds. Apart from this, the paper is a reminder for the authorities to have a broad policy discussion on diverse fiscal consequences that different retirement age policies may cause like wage inflexibility, disposable labor issues, and the aging population. These results demonstrate that the simulation should be considered for its interplay with individuals' lives as well as for the macro economy. To scrutinize the efficacy of postponing retirement within China's employment market performance, it's critical to deploy some economic theories. The first method involves the insights from both the Beveridge curve and job creation curve to dissect the nuances of job turnover rates, opportunities for finding new jobs, and their influence on unemployment figures. Delving deeper into pension fund ramifications necessitates assessing the shift from Defined Contribution (DC) schemes towards Defined Benefit (DB) plans, while also taking stock of how dependency ratios come into play. Moreover, gauging effects on incremental labor productivity alongside capital-to-labor ratio calls for an expansive view that considers changes across various industrial sectors and their broader consequences on the labor market as a whole.

An Analysis of the Impact of Population Ageing on Inflation in China

Abstract: The relationship between demographic change and economic development is one of the most recent and important research topics. Researchers have found that aging will have a certain impact on inflation, but there is still a research gap and controversy on China's inflation problem. Therefore, this paper collects data on the aging process of China's population and inflation rate between 2004 and 2023 and applies graphical analysis and literature analysis to study the data to try to find a cleaner relationship. Through the research, it can be concluded that China's changing population structure has a relatively inhibitory effect on inflation and a negative effect on economic development. The reason may be that the decline in the labor force caused by population aging has a greater impact on aggregate demand than on aggregate supply. Overall, to reduce the impact of the deepening process of population aging, postponing the retirement age and developing the elderly care industry can be an effective way to boost aggregate supply growth to control the increased inflation rate.

Are the Quality of Organizational Changes Associated with Expected Retirement-Age Among Senior Employees?

Major organizational changes may be associated with both positive and negative uncertainty in working life. This study described the prevalence of organizational changes (reorganizations or round of layoffs) within different job functions in Denmark and investigated whether quality of the implementation process (measured as "information", "involvement" and "consent") was associated with employees' expectations regarding retirement age. A representative sample of older Danish employees ≥ 50years (n = 12,269) replied to a questionnaire survey in 2020. In cross-sectional analyses, we compared employee's expected retirement age being either not exposed to organizational changes or exposed to implementation processes of high, moderate or low-quality, respectively. Analyses were further stratified for job function: office work, work with people and work in the field of production. More than half (56%) of the employees had experienced organizational changes within the past 2years, and 23% of those effected reported that the changes had led to considerations of earlier retirement. Organizational changes were most prevalent within office work, and least prevalent within the job function working with people. The analyses showed significantly lower expected retirement age when the implementation process had been of moderate (mean reduction of 0.45years) or low quality (mean reduction of 0.71years) compared to high quality implemented changes. Experiences of organizational change processes of moderate or poor quality were associated with expectations of earlier retirement, while well implemented changes were not. This study underscores the importance of good implementation when changes at the organizational level are needed.

The influence of subjective age and temporal focus on continuing work of the retireess: a psychological perspective

The demographic trend of population aging is a global phenomenon impacting the world community at large and individual national economies. Despite growing interest in the determinants of continued work among retirees, the internal (psychological) factors influencing an individual’s decision to retire after reaching retirement age have been inadequately studied. This study addresses this gap by examining psychological variables such as subjective age and temporal focus among working retirees. The results of comparing groups of working and non-working retirees revealed several key findings: 1) retirees who continue to work have a lower past focus compared to non-working retirees; 2) the subjective age of working retirees is lower (younger) than that of non-working retirees; 3) an association between a younger subjective age and current focus was found in non-working retirees, whereas in working retirees, no links were found between temporal focus and subjective age; and 4) the desire to stay young (younger social age) predicts the continuation of work in retirement. This study contributes to the development of ideas about the role of psychological time in motivating elderly people to continue their professional activities in retirement. The results strengthen the evidence that a younger subjective age, especially social age, is one of the reasons for continuing a professional career in old age. Additionally, the study enriches scientific understanding with new data on the role of temporal focus in the context of aging.

Family care in Germany and its gender-(un)specific patterns: an analysis using novel data from the German Socio-Economic Panel Innovation Sample

This article examines how the characteristics of people needing care determine the provision of family care and the time intensity of caring for men and women. Using novel data, we conduct linear (probability) regression models and find that women face family care demands as often as men but tend to provide more (time-intensive) care. When of retirement age, men are more likely than women to meet care needs for partners and support individuals with lower-severity care needs. Women invest more time caring for (adult) children and co-residents and on higher-severity care than men, particularly when they are of working age.

OLG Model Analysis of Delayed Retirement and Social Pension Effects on Family-Based Elderly Care in China

Driven by the traditional concept of “Raising Children to Ensure Old-age Security”, China’s elderly care system has long relied on a family-centered approach, with intergenerational financial transfers (IFTs) serving as a major source of income for the elderly. However, as China’s population ages, the government’s plan to implement delayed retirement from 2025, along with pension reforms, is expected to reshape family-based eldercare and intergenerational financial dynamics. This paper employs an Overlapping Generation (OLG) model, grounded in unified growth theory, which incorporates a delayed retirement policy under the constraint of pension fund balance to examine the impact of adjusting the pension contribution rates (PCRs) and raising retirement age (RA) on IFT rates. The research findings indicate a negative correlation between RA, PCR, and IFT. Both policies have the potential to alleviate the burden on family-based eldercare. The integrated implementation of these two policies not only creates room for a phased reduction in pension contribution rates but also enables the effective utilization of senior workers’ expertise and experience.

Stages of automating pension determination in Azerbaijan

Pension is the restoration of a portion or the entire amount of a person’s lost salary. When a person loses their official job, a pension is provided as compensation for the lost job and salary. A pension is essentially an insurance product. Just as we insure our cars, homes, and lives, a pension serves as insurance for the job or salary we might lose. Therefore, it should be viewed purely as an economic mechanism. In this system, the State Social Protection Fund acts as the insurer. It collects annual insurance premiums and, in the event of an insurance occurrence, pays out benefits to individuals who have reached retirement age. The disbursement of social insurance payments, or pensions, begins with the determination of the pension amount. Today, in our country, the process of determining pension amounts is automated. The automation of this process has primarily eliminated subjective influences in the calculation and awarding of pensions. It must be understood that despite stringent control mechanisms, subjective influences cannot be completely eradicated where human factors are involved. Previously, there were instances of exploitation of citizens' lack of information during pension determination. The automated pension determination system has first and foremost removed direct citizen-official contact and ensured transparency. Additionally, it has achieved operational efficiency in the determination process, meaning that when a citizen reaches retirement age, they can realize their pension rights without going anywhere, applying, presenting documents, or facing any delays or bureaucratic hurdles. In this regard, the new system serves the interests of citizens.