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Patterns of Retirement as Reflected in Income Tax Records for Older Workers

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  • Frank T. Denton
  • Ross Finnie
  • Byron G. Spencer

Abstract

If retirement means a substantial and sustained reduction in the time spent working for pay or profit, measurement requires a definition of substantial and sufficient observations of the same individuals to determine whether a transition from “working” to “retired” status has occurred. Using the Statistics Canada Longitudinal Administrative Databank, a 20 percent sample of the individual income tax returns of all tax filers since 1980, we identify those with significant labour force attachment at ages 50-52, and follow them year by year. If retired means having no income from employment, the median age of retirement is about 63 for men, 62 for women. That is true for all cohorts. If earning up to half of one’s previous employment income is deemed consistent with being retired, the median age is about 60 for both men and women. Results obtained in this way are consistent with calculations based on Labour Force Survey data.

Suggested Citation

  • Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Patterns of Retirement as Reflected in Income Tax Records for Older Workers," Social and Economic Dimensions of an Aging Population Research Papers 257, McMaster University.
    • Handle: RePEc:mcm:sedapp:257
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    References listed on IDEAS

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    1. M. Shannon & D. Grierson, 2004. "Mandatory retirement and older worker employment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 528-551, August.
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    Cited by:

    1. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2011. "The Age Pattern of Retirement: A Comparison of Cohort Measures," Social and Economic Dimensions of an Aging Population Research Papers 283, McMaster University.
    2. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Income Replacement in Retirement: Longitudinal Evidence from Income Tax Records," Social and Economic Dimensions of an Aging Population Research Papers 261, McMaster University.
    3. Peter Hicks, 2012. "Later Retirement: the Win-Win Solution," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 345, March.

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    Keywords

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    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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