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Non-financial Determinants of Retirement: A Literature Review

  • Frank Erp
  • Niels Vermeer

    ()

  • Daniel Vuuren

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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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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