Pension Incentives and the Pattern of Early Retirement

Dados Bibliográficos

ID9706783
AutoresRichard Blundell (0000-0003-1588-2299, University College London and Institute for Fiscal Studies), Costas Meghir (0000-0002-4448-425X, University College London and Institute for Fiscal Studies), Sarah Smith (0000-0003-0857-5039, University College London and Institute for Fiscal Studies)
Ano2002
Volume112
Fascículo478
PáginasC153-C170
Data de publicação2002-03-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00031
OpenAlexW2004604284
IdiomaEN
Citações recebidas17
Referências citadas4

This mix of state and private pension provision in the United Kingdom provides a rare degree of variation in pension incentives for retirement. Using a sample of individuals from the UK Retirement Survey, the paper models the probability of retirement in terms of the incentives underlying the individual’s pension plan as well as other socio-economic factors. It follows an option value approach and allows a separate role for pension wealth, for spouse’s economic characteristics and for demographic characteristics. It distinguishes between SERPS and private schemes and models eligibility to disability. The results point to significant retirement incentive effects from the pension system. Like many other OECD countries, the United Kingdom has been experiencing a trend towards earlier labour market exits among older, particularly male, work-ers. The proportion of men aged 60–64 in employment halved from 1968, when 80 % were employed, to less than 40 % at the end of the 1990s. The fall in the proportion of older men who were in full-time employment was even greater than the fall in the proportion in any form of employment with a relative shift within the employed to self-employment and part-time employment. Female employ

Actuarial science · Business · Demographic economics · Economics · Incentive · Labour economics · Microeconomics · Pension · Pension plan · Point (geometry · Political science · Private pension · Sample (material · Spouse · Value (mathematics · Finance · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Retirement, Disability, and Employment