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Phasing into Retirement

Author

Listed:
  • Steven G. Allen
  • Robert L. Clark
  • Linda S. Ghent

Abstract

To help workers navigate the transition from work to retirement more effectively, employers have been launching phased retirement programs, which allow older employees to work part-time and receive full retirement benefits. This paper examines the experience of the phased retirement system for tenured faculty in the University of North Carolina system over the years 1996–98. After phased retirement was introduced, there was a sizable increase in the overall separation rate in the system. The key finding from an empirical analysis of the retirement decision as a function of pension incentives, employee performance, demographics, and campus characteristics is that the odds of entering phased retirement were strongly and inversely related to employee performance, as measured by recent pay increases.

Suggested Citation

  • Steven G. Allen & Robert L. Clark & Linda S. Ghent, 2004. "Phasing into Retirement," ILR Review, Cornell University, ILR School, vol. 58(1), pages 112-127, October.
    • Handle: RePEc:sae:ilrrev:v:58:y:2004:i:1:p:112-127
    DOI: 10.1177/001979390405800106
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    References listed on IDEAS

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    1. Ippolito, Richard A, 1985. "The Labor Contract and True Economic Pension Liabilities," American Economic Review, American Economic Association, vol. 75(5), pages 1031-1043, December.
    2. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
    3. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-1180, September.
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    Cited by:

    1. Lachowska, Marta & Sundén, Annika & Wadensjö, Eskil, 2009. "The Impact of a Phased Retirement Program: A Case Study," IZA Discussion Papers 4284, IZA Network @ LISER.
    2. Alassane Diaw, 2017. "Retirement Preparedness in Saudi Arabia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 78-86.
    3. Robert Hutchens, 2007. "Phased Retirement: Problems and Prospects," Work Opportunity Briefs wob_8, Center for Retirement Research, revised Feb 2007.
    4. Pettersson, Jan, 2011. "Instead of Bowling Alone? Unretirement of Old-Age Pensioners," Working Paper Series 2011:14, Uppsala University, Department of Economics.

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