Retirement Patterns From Career Employment

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The Gerontologist (Impact Factor: 3.21). 09/2006; 46(4):514-23. DOI: 10.1093/geront/46.4.514
Source: PubMed


This article investigates how older Americans leave their career jobs and estimates the extent of intermediate labor force activity (bridge jobs) between full-time work on a career job and complete labor-force withdrawal.
Using data from the Health and Retirement Study, we explored the work histories and retirement patterns of a cohort of retirees aged 51 to 61 in 1992 during a 10-year period in both cross-sectional and longitudinal contexts. We examined determinants of retirement patterns in a multinomial logistic regression model.
We found that a majority of older Americans with career jobs retire gradually, in stages, rather than all at once. We also found that the utilization of bridge jobs was more common among younger respondents, respondents without defined-benefit pension plans, and respondents at both the lower and upper ends of the wage distribution.
Older Americans are now working longer than pre-1980s trends would have predicted. Given concerns about the traditional sources of retirement income (Social Security, employer pensions, and prior savings), older Americans may have to rely more on earnings. This article suggests that many are already doing so by moving to bridge jobs after leaving their career employment.

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Available from: Kevin E. Cahill, Jan 11, 2016
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    • "We use the lower tenure requirement to maintain sufficient sample sizes for our analyses, although we do perform a subanalysis, described below, using the 10-year requirement. In any case, the retirement literature has established that retirement transitions are fairly robust to reasonable alternative definitions of career employment, of which a 5-year tenure requirement can be considered (Cahill et al., 2006 ). Approximately, onethird of employees and more than 4 out of 10 managers were aged 50 or older at the time of the first interview and 58% of employees and 68% of managers had 5 or more years of tenure with ModMed. "
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    ABSTRACT: This paper examines the causal relationship between a workplace flexibility arrangement and retirement expectations. The data come from a unique large-scale randomly-assigned Time and Place Management (TPM) initiative that recently took place at a regional healthcare system in the United States with more than 9,000 employees. A difference-in-differences approach was used to assess treatment impacts among older full-time career employees and comparisons were made with a nationally-representative group of older Americans from the Health and Retirement Study (HRS). We found that the TPM initiative had a statistically-significant impact on employees’ retirement expectations, as employees in the treatment group were more likely than those in the control group to expect to remain with the organization until retirement. The results indicate that workplace flexibility could be one solution to promote continued work later in life, as flexible work arrangements have the potential to impact retirement expectations and patterns of labor force withdrawal.
    Full-text · Conference Paper · Jan 2015
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    • "Hence, part-time work 1 Which may be agreed upon by employer and employee. provides the opportunity to retire gradually by providing a bridge between full-time employment and retirement (Gustman & Steinmeier, 1984; Ruhm, 1990; Quinn & Kozy, 1996; Kim & DeVaney, 2005; Cahill et al., 2006; Ruhm, 2006). Reday-Mulvey & Delsen (1996) indicate the importance of such 'bridge jobs' across OECD countries. "
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    ABSTRACT: In many European countries, the labor market participation of older workers is considerably lower than the labor market participation of prime-age workers. This study analyzes the variation in labor market withdrawal of older workers across 13 European countries over the period 1995-2008. We seek to contribute to existing macro-econometric studies by taking non-standard employment into account, by relating the empirical model more explicitly to optional value model theory on retirement decisions and by using a two-step IV-GMM estimator to deal with endogeneity issues. The analysis leads to the conclusion that part-time employment is negatively related to labor market withdrawal of older men. This relationship is less strong among women. Additionally, we find that part-time employment at older ages does not decrease the average actual hours worked. Furthermore, the results show a positive relationship between unemployment among older workers and early retirement similar to previous studies.
    Full-text · Article · Oct 2014
    • "But, the findings with regard to income or financial resources are ambiguous. Cahill et al. (2006), for example, found that bridge employment was more common among respondents at both the lower and upper ends of the wage distribution. Wang et al. (2008) suggest that this may stem from the fact that bridge employment covers a variety of employment types. "
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    ABSTRACT: Self-employment among older age groups is rising. A better understanding of the role of self-employment in extending the working lives of individuals is, therefore, relevant from a policy perspective. By bridging the gap in the literature on work/retirement decision-making and entrepreneurship, the present study examines the factors associated with entry into self-employment post-retirement, after a worker has left a regular salaried position. This decision is modelled as a choice between full retirement and prolonged labour force participation, in the form of either a typical wage-providing job or self-employment. Data were derived from the Netherlands Interdisciplinary Demographic Institute Work and Retirement Panel, an ongoing longitudinal survey of older workers (50 years and over) employed by three private sector organisations and employed as civil servants in the Netherlands. These data were then analysed using multinomial logistic regression analysis. The results of this study show that the decision to pursue self-employment is primarily taken by retirees with relatively high levels of financial and human capital (wealth and educational attainment), those possessing entrepreneurial attitudes (high self-efficacy scores) and those who perceive their retirements to be completely involuntary. The results lend support to self-employment being selected as a postretirement path through opportunity rather than out of necessity. The fact that the retirements of the studied population were generally quite early, while not considered involuntary also suggests that the timing of the decision to retire may be driven by the emergence of new (business) opportunities.
    No preview · Article · Sep 2014 · European Journal of Ageing
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