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Firm Pension Policy and Early Retirement

In: Age, Work and Social Security

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  • David A. Wise

Abstract

The American population is ageing rapidly. Persons 65 and over who now constitute about one-fifth of the population will constitute about two-fifths of the population by 2040. In addition, individuals are living longer. Yet the labour force participation of older Americans has fallen dramatically in recent years. This chapter discusses this trend, with emphasis on the effect of firm pension plan provisions. The chapter is in two parts. The first part reviews trends in labour force participation and associated trends in social security (SS) coverage, firm pension plan coverage, and other factors that are likely to be associated with the labour force participation trends. The second part of the chapter discusses the incentive effects of SS and retirement plans, with emphasis on firm pension plans. The presentation is primarily graphical. I begin with a simple conceptual framework.

Suggested Citation

  • David A. Wise, 1993. "Firm Pension Policy and Early Retirement," Palgrave Macmillan Books, in: A. B. Atkinson & Martin Rein (ed.), Age, Work and Social Security, chapter 3, pages 51-88, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-22668-9_3
    DOI: 10.1007/978-1-349-22668-9_3
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