IDEAS home Printed from https://ideas.repec.org/a/eso/journl/v44y2013i4p447-472.html
   My bibliography  Save this article

Increasing the State Pension Age, the Recession and Expected Retirement Ages

Author

Listed:
  • Alan Barrett

    (Economic and Social Research Institute; The Irish Longitudinal Study on Ageing (TILDA), Trinity College Dublin)

  • Irene Mosca

    (The Irish Longitudinal Study on Ageing (TILDA), Trinity College Dublin)

Abstract

In March 2010, the Irish government announced that the age at which the state pension is paid would be raised to 66 in 2014, 67 in 2021 and 68 in 2028. One typical objective of such policy reforms is to provide an incentive for later retirement. The question we address in this paper is whether the expected retirement ages of Irish individuals aged 50 to 64 changed as a result of the policy announcement. The data we use are from the Irish Longitudinal Study on Ageing (TILDA). Our findings show that there was no noticeable break in expected retirement ages before and after 3 March, 2010 (the day on which the policy announcement was made). Also during 2010, the economic news became increasingly bad as the full scale of the fiscal and banking crises in Ireland emerged. The data suggest that there was a reduction in the proportion of people planning to retire at age 65 after 30 September, 2010, the day that the full scale of the banking crisis emerged.

Suggested Citation

  • Alan Barrett & Irene Mosca, 2013. "Increasing the State Pension Age, the Recession and Expected Retirement Ages," The Economic and Social Review, Economic and Social Studies, vol. 44(4), pages 447-472.
    • Handle: RePEc:eso:journl:v:44:y:2013:i:4:p:447-472
    as

    Download full text from publisher

    File URL: https://www.esr.ie/article/view/90/70
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Purvi Sevak, 2002. "Wealth Shocks and Retirement Timing: Evidence from the Nineties," Working Papers wp027, University of Michigan, Michigan Retirement Research Center.
    2. Bottazzi, Renata & Jappelli, Tullio & Padula, Mario, 2006. "Retirement expectations, pension reforms, and their impact on private wealth accumulation," Journal of Public Economics, Elsevier, vol. 90(12), pages 2187-2212, December.
    3. Richard Disney & Tanner, Tanner, 1999. "What can we learn from retirement expectations data?," IFS Working Papers W99/17, Institute for Fiscal Studies.
    4. Coppola, Michela & Wilke, Christina Benita, 2010. "How sensitive are subjective retirement expectations to increases in the statutory retirement age? The German case," MEA discussion paper series 10207, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    5. Brooke Helppie McFall, 2011. "Crash and Wait? The Impact of the Great Recession on the Retirement Plans of Older Americans," American Economic Review, American Economic Association, vol. 101(3), pages 40-44, May.
    6. Agar Brugiavini & Axel B�rsch-Supan & Enrica Croda, 2008. "The Role of Institutions in European Patterns of Work and Retirement," Working Papers 2008_44, Department of Economics, University of Venice "Ca' Foscari".
    7. Alan L. Gustman & Thomas L. Steinmeier & Nahid Tabatabai, 2010. "What the Stock Market Decline Means for the Financial Security and Retirement Choices of the Near-Retirement Population," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 161-182, Winter.
    8. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Axel Börsch-Supan & Tabea Bucher-Koenen & Michela Coppola & Bettina Lamla, 2015. "Savings In Times Of Demographic Change: Lessons From The German Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 807-829, September.
    2. Struffolino, Emanuela & Zaccaria, Daniele, 2020. "Did You Realize your Preferences for Early Retirement? Insights on the Agency-Within-Structure Mechanism across Welfare Regimes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(1), pages 33-58.
    3. Börsch-Supan Axel & Coppola Michela & Rausch Johannes, 2015. "Die „Rente mit 63“: Wer sind die Begünstigten?: Was sind die Auswirkungen auf die Gesetzliche Rentenversicherung?," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 264-288, October.
    4. Börsch-Supan, Axel & Coppola, Michela & Rausch, Johannes, 2014. "Die Rente mit 63: Wer sind die Begünstigten? Was sind die Auswirkungen auf die Gesetzliche Rentenversicherung?," MEA discussion paper series 201417, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barrett, Alan & Mosca, Irene, 2012. "Announcing an Increase in the State Pension Age and the Recession: Which Mattered More for Expected Retirement Ages?," IZA Discussion Papers 6325, Institute of Labor Economics (IZA).
    2. Begley, Jaclene & Chan, Sewin, 2018. "The effect of housing wealth shocks on work and retirement decisions," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 180-195.
    3. Luigi Guiso & Tullio Jappelli & Mario Padula, 2009. "Pension Risk, Retirement Saving and Insurance," CSEF Working Papers 223, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Kathleen Arano & Carl Parker, 2016. "The great recession and changes in faculty expected retirement age," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(1), pages 127-136, January.
    5. John Ameriks & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2015. "The Wealth of Wealthholders," NBER Working Papers 20972, National Bureau of Economic Research, Inc.
    6. Gopi Shah Goda & Emilie Jackson & Lauren Hersch Nicholas & Sarah See Stith, 2023. "The impact of Covid-19 on older workers’ employment and Social Security spillovers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 813-846, April.
    7. Bottazzi, Renata & Jappelli, Tullio & Padula, Mario, 2006. "Retirement expectations, pension reforms, and their impact on private wealth accumulation," Journal of Public Economics, Elsevier, vol. 90(12), pages 2187-2212, December.
    8. Gopi Shah Goda & John B. Shoven & Sita Nataraj Slavov, 2012. "Does Stock Market Performance Influence Retirement Intentions?," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 1055-1081.
    9. Michele Belloni & Rob Alessie, 2013. "Retirement Choices in Italy: What an Option Value Model Tells Us," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 499-527, August.
    10. Gustafson, Matthew T., 2017. "The market sensitivity of retirement and defined contribution pensions: Evidence from the public sector," Journal of Public Economics, Elsevier, vol. 145(C), pages 1-13.
    11. Lindeboom, Maarten & Montizaan, Raymond, 2020. "Disentangling retirement and savings responses," Journal of Public Economics, Elsevier, vol. 192(C).
    12. Catalina Amuedo-Dorantes & Susan Pozo, 2015. "The impact of the recession on the wealth of older immigrant and native households in the United States," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    13. Mauro Mastrogiacomo & Yue Li & Rik Dillingh, 2022. "The displacement effect of compulsory pension savings on private savings. Evidence from the Netherlands, using pension funds supervisory data," Working Papers 747, DNB.
    14. Goda, Gopi Shah & Jackson, Emilie & Nicholas, Lauren Hersch & Stith, Sarah See, 2023. "Older workers’ employment and Social Security spillovers through the second year of the COVID-19 pandemic," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(4), pages 524-549, October.
    15. Lindeboom, Maarten & Montizaan, Raymond, 2018. "Pension Reform: Disentangling Retirement and Savings Responses," IZA Discussion Papers 11620, Institute of Labor Economics (IZA).
    16. Belloni, Michele & Alessie, Rob, 2009. "The importance of financial incentives on retirement choices: New evidence for Italy," Labour Economics, Elsevier, vol. 16(5), pages 578-588, October.
    17. Jappelli, Tullio & Padula, Mario & Bottazzi, Renata, 2005. "Retirement Expectations, Pension Reforms and Their Effect on Private Wealth Accumulation," CEPR Discussion Papers 4882, C.E.P.R. Discussion Papers.
    18. Coile Courtney C & Levine Phillip B, 2011. "The Market Crash and Mass Layoffs: How the Current Economic Crisis May Affect Retirement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-42, April.
    19. M. Baldini & C. Mazzaferro & P. Onofri, 2015. "Pension expectations and reality. What do Italian workers know about their future public pension benefits?," Working Papers wp1007, Dipartimento Scienze Economiche, Universita' di Bologna.
    20. Irina Merkurieva, 2018. "Late Career Job Loss and the Decision to Retire," Discussion Paper Series, School of Economics and Finance 201606, School of Economics and Finance, University of St Andrews.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eso:journl:v:44:y:2013:i:4:p:447-472. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aedin Doris (email available below). General contact details of provider: https://www.esr.ie .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.