Article2007

THE RECENT TREND TOWARDS LATER RETIREMENT

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Retirement, Disability, and Employment Labor market dynamics and wage inequality Financial Literacy, Pension, Retirement Analysis

Abstract

A dramatic decline in work at older ages persisted over most of the twentieth century. Recently, however, retirement ages stabilized, prompting debate as to whether the early retirement trend had stopped or simply paused. This brief shows that the trend towards earlier retirement has not just leveled off but has apparently reversed, with especially large increases in labor supply of women in late middle age. It then offers some explanations for this apparent reversal. Many of the likely causes of delayed retirement could potentially have greater effects on successive birth cohorts nearing retirement, making it possible that the trend towards delayed retirement will continue.

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References

1990Bridge Jobs and Partial Retirement 1994Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?1998The Evolution of Retirement 1998New evidence on pensions, social security, and the timing of retirement 2000The Labor Supply Effects of the Social Security Earnings Test 2003Retirement and the Evolution of Pension Structure 1999The Evolution of Retirement: An American Economic History, 1880-1990 1999Has the Early Retirement Trend Reversed

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