Early Retirement Windows
AbstractAn early retirement window is an offer, by an employer, of a special incentive to retire at a particular time, beyond that provided by the firm's pension plan. While such windows have attracted increasing attention in the academic literature and the business press, most of our current knowledge about them is based on case studies or compensation consultants' surveys of their clients. The Health and Retirement Study provides an opportunity to analyze the incidence and consequences of such offers among a representative sample of workers who are in the age range (51-61 in 1992) where such windows may be important. HRS data suggest that window offers increased in the early 1990s. At their peak in the mid- 1990s, employers were making about 5 offers per 100 workers age 55-59. One third of the offers were accepted. The economic impact of window offers depends on the extent to which those who accept such offers would have left the employer soon anyway, and those who are induced to leave one employer go to work elsewhere. But multiplying the frequency of such offers by the acceptance rate suggests a substantial potential impact on the employment of workers in the HRS age range. Window offers are generally made to workers in "career" jobs. Such workers have aboveaverage education, tenure with employer, and earnings. The attachment between the employer and such workers is often strengthened by defined-benefit pension plans, which discourage leaving before the early-retirement age of the pension plan but often also provide sharp incentives to leave "on time". Workers who received window offers were closer to early retirement age (as defined by their pension plan), and were expecting to retire sooner than other workers. Thus, one might expect that those who receive window offers would have retired earlier than other workers, even without the special window incentive. On the other hand, those receiving window offers are better paid and in better health than t
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Wharton School Pension Research Council, University of Pennsylvania in its series Pension Research Council Working Papers with number 98-17.
Date of creation:
Date of revision:
Publication status: Published in Forecasting Retirement Needs and Retirement Wealth. 2000: 253-273.
Contact details of provider:
Postal: The Wharton School, 3641 Locust Walk, 304 CPC, Philadelphia, PA 19104-6218
Web page: http://www.pensionresearchcouncil.org/
More information through EDIRC
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charles Brown, .
"Early Retirement Windows,"
Pension Research Council Working Papers
98-17, Wharton School Pension Research Council, University of Pennsylvania.
- Gustman, A.L. & Mitchell, O.S. & Steinmeier, T.L., 1993.
"The Role of Pensions in the Labor Market,"
93-07, Cornell - Center for Advanced Human Resource Studies.
- Robin L. Lumsdaine & James H. Stock & David A. Wise, 1990.
"Efficient Windows and Labor Force Reduction,"
NBER Working Papers
3369, National Bureau of Economic Research, Inc.
- Charles Brown, 2003.
"Early Retirement Windows,"
wp064, University of Michigan, Michigan Retirement Research Center.
- repec:hal:wpaper:halshs-00566855 is not listed on IDEAS
- Leora Friedberg & Michael T. Owyang, 2004.
"Explaining the evolution of pension structure and job tenure,"
2002-022, Federal Reserve Bank of St. Louis.
- Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc.
- Leora Friedberg & Anthony Webb, 2005.
"Retirement and the Evolution of Pension Structure,"
Journal of Human Resources,
University of Wisconsin Press, vol. 40(2).
- Randall Filer & Marjorie Honig, 2005.
"Endogenous Pensions and Retirement Behavior,"
CESifo Working Paper Series
1547, CESifo Group Munich.
- Randall K. Filer & Marjorie Honig, 2005. "Endogenous Pensions and Retirement Behavior," Hunter College Department of Economics Working Papers 410, Hunter College: Department of Economics.
- John Laitner, 2003. "Labor Supply Responses to Social Security," Working Papers wp050, University of Michigan, Michigan Retirement Research Center.
- Daniel Hallberg, 2011.
"Economic Fluctuations and Retirement of Older Employees,"
CEIS, vol. 25(3), pages 287-307, 09.
- Hallberg, Daniel, 2008. "Economic fluctuations and retirement of older employees," Working Paper Series 2008:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- John Laitner & Dan Silverman, 2007. "Life-Cycle Models: Lifetime Earnings and the Timing of Retirement," Working Papers wp165, University of Michigan, Michigan Retirement Research Center.
- Alan L. Gustman & Thomas L. Steinmeier, 2004. "Minimum Hours Constraints, Job Requirements and Retirement," NBER Working Papers 10876, National Bureau of Economic Research, Inc.
- Coe, Norma B. & Lindeboom, Maarten, 2008.
"Does Retirement Kill You? Evidence from Early Retirement Windows,"
IZA Discussion Papers
3817, Institute for the Study of Labor (IZA).
- Coe, N.B. & Lindeboom, M., 2008. "Does Retirement Kill You? Evidence from Early Retirement Windows," Discussion Paper 2008-93, Tilburg University, Center for Economic Research.
- Alan L. Gustman & Thomas L. Steinmeier, 2004. "How to Evaluate the Effects of Social Security Policies on Retirement and Saving When Firm Policies Affect the Opportunities Facing Older Individuals," Working Papers wp078, University of Michigan, Michigan Retirement Research Center.
- Alan L. Gustman & Olivia S. Mitchell & Thomas L. Steinmeier, 1994. "Retirement Research Using the Health and Retirement Survey," NBER Working Papers 4813, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Farrell).
If references are entirely missing, you can add them using this form.