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The Pension Acceptance Decision of Older Workers

  • Richard V. Burkhauser

This study focuses on factors related to an older worker's decision to accept a pension and on how this influences subsequent market work. A life-cycle model is used which emphasizes the asset nature of the pension decision and in particular includes changes in potential earnings streams due to the work restrictions imposed by a pension. The empirical results show that the timing of acceptance of a pension depends upon the actuarial value of the plan at different ages, not on payments in any one year. While health affects the pension decision, voluntary economic decision variables play a major role in the timing of pension acceptance for both the healthy and those in ill health.

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File URL: http://www.jstor.org/stable/pdfplus/145538
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 14 (1979)
Issue (Month): 1 ()
Pages: 63-75

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Handle: RePEc:uwp:jhriss:v:14:y:1979:i:1:p:63-75
Contact details of provider: Web page: http://jhr.uwpress.org/

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