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Retirement and the Evolution of Pension Structure

Year: 2005

Type: article

Abstract: Defined benefit pension plans have become considerably less common since the early 1980s, while defined contribution plans have spread.Previous research showed that defined benefit plans, with sharp incentives encouraging retirement after a certain point, contributed to the striking postwar decline in American retirement ages.In this paper we find that the absence of age-related incentives in defined contribution plans leads workers to retire almost two years later on average, compared to workers with defined benefit plans.Thus, the evolution of pension structure can help explain recent increases in employment among people in their 60s, after decades of decline.

Source: The Journal of Human Resources

DOI: 10.3368/jhr.xl.2.281

Authors: Leora Friedberg, Anthony Webb

Institutions: National Bureau of Economic Research, University of Virginia, Boston College, International Longevity Centre

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W1922581385