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Non-financial Determinants of Retirement: A Literature Review

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  • Frank Erp
  • Niels Vermeer

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  • Daniel Vuuren
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    Abstract

    Retirement is often concentrated at specific ages—in particular the ‘normal retirement age’ and an ‘early retirement age’. Financial incentives cannot fully explain this. Moreover, the participation effect of a higher normal retirement age importantly exceeds the encompassing income effect. Based on a literature survey, we conclude that social norms, default options, and reference-dependent utility are likely explanations for the individual propensity to retire at specific retirement ages. Further empirical research on non-financial determinants of retirement is needed to fully understand individual retirement behavior. Copyright Springer Science+Business Media New York 2014

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    Bibliographic Info

    Article provided by Springer in its journal De Economist.

    Volume (Year): 162 (2014)
    Issue (Month): 2 (June)
    Pages: 167-191

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    Handle: RePEc:kap:decono:v:162:y:2014:i:2:p:167-191

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    Web page: http://www.springerlink.com/link.asp?id=100260

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    Keywords: Retirement age; Bounded rationality; Social norms; J26; D01;

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