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Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age

Author

Listed:
  • Niels Vermeer

    (Ministry of Finance)

  • Maarten Rooij

    (DNB
    Netspar)

  • Daniel Vuuren

    (Netspar
    Tilburg University)

Abstract

Using a specifically designed survey, we investigate the role of the social network in shaping workers’ retirement preferences. We find that the preferred retirement age is influenced by the advice and retirement decisions of coworkers, family, and friends. Workers value in particular the advice of their spouse and children and take their personal circumstances into consideration. Responses to vignette questions imply that workers increase their preferred retirement age with on average 3 months in response to a 1 year increase in the retirement age of coworkers, family and friends. Workers are particularly willing to postpone retirement if the planned retirement age was below the statutory retirement age. The results suggest that advice of the social environment and factors like ‘social embeddedness’ or social norms likely play a role when it comes to retirement decision-making.

Suggested Citation

  • Niels Vermeer & Maarten Rooij & Daniel Vuuren, 2019. "Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age," De Economist, Springer, vol. 167(4), pages 307-345, December.
    • Handle: RePEc:kap:decono:v:167:y:2019:i:4:d:10.1007_s10645-019-09350-0
    DOI: 10.1007/s10645-019-09350-0
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    2. Albinowski, Maciej, 2024. "Part-time employment opportunities and labour supply of older workers," The Journal of the Economics of Ageing, Elsevier, vol. 28(C).
    3. Tomasz Jedynak, 2022. "Does the Formulation of the Decision Problem Affect Retirement?—Framing Effect and Planned Retirement Age," IJERPH, MDPI, vol. 19(4), pages 1-30, February.
    4. Gallego-Losada, Rocío & Montero-Navarro, Antonio & Rodríguez-Sánchez, José-Luis & González-Torres, Thais, 2022. "Retirement planning and financial literacy, at the crossroads. A bibliometric analysis," Finance Research Letters, Elsevier, vol. 44(C).
    5. M. Kauppi & K. C. Prakash & M. Virtanen & J. Pentti & V. Aalto & T. Oksanen & M. Kivimäki & J. Vahtera & S. Stenholm, 2021. "Social relationships as predictors of extended employment beyond the pensionable age: a cohort study," European Journal of Ageing, Springer, vol. 18(4), pages 491-501, December.
    6. Oude Mulders, Jaap & Henkens, C.J.I.M. & van Dalen, Hendrik Peter, 2021. "Employees’ emotional, cognitive, and behavioral responses to increasing statutory retirement ages," Other publications TiSEM 4aab8515-50c9-4c23-bd2f-3, Tilburg University, School of Economics and Management.
    7. Dan Goldhaber & Cyrus Grout & Kristian L. Holden & Josh B. McGee, 2024. "Evidence on the Relationship between Pension-Driven Financial Incentives and Late-Career Attrition: Implications for Pension Reform," ILR Review, Cornell University, ILR School, vol. 77(2), pages 175-198, March.

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    More about this item

    Keywords

    Retirement planning; Retirement preferences; Reference points; Statutory retirement age;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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