Article

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

ABSTRACT

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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    • "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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    • "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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