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Why are Retirement Rates So High at Age 65?

Year: 1995

Type: report

Abstract: In most data sets of labor force participation of the elderly, an empirical regularity that emerges is that retirement rates are particularly high at age 65. While there are numerous economic reasons why individuals may choose to retire at 65, empirical models that have attempted to explain the age-65 spike have met with limited success. Interpreted another way, while many models would predict a jump in the hazard rate at age 65, the magnitude of the spike indicates excessive response given the economic considerations that retirees typically face. This paper considers the puzzle of why retirement rates are so high at age 65 and explores a variety of explanations.

Source: National Bureau of Economic Research

DOI: 10.3386/w5190

Authors: Robin Lumsdaine, James Stock, David Wise

Institutions: National Bureau of Economic Research, American University, Erasmus University Rotterdam, Harvard University

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1593381706

Cites:

Cited by: 47

Related to: 10