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GRADUAL RETIREMENT: PREFERENCES AND LIMITATIONS.

Tunga Kantarci, Arthur VAN Soest

De Economist

|May 6, 2010

Summary

Gradual retirement offers a smoother transition from work to retirement compared to abrupt cessation. This study examines gradual retirement programs in Europe and the US, assessing their potential in the Netherlands to extend employment for older workers.

Area of Science:

Social Sciences
Economics
Gerontology

Background:

Traditional retirement involves abrupt cessation of work at a specific age.
Gradual retirement offers a more appealing, phased transition for individuals.
European countries have implemented gradual retirement programs to boost labor participation among older workers.

Purpose of the Study:

To survey the literature on gradual retirement in the US and Europe.
To analyze the relevance of gradual retirement in the Netherlands.
To assess gradual retirement as a tool for extending employment for older individuals.

Main Methods:

Literature review of gradual retirement programs in the US and Europe.
Analysis of existing gradual retirement schemes and their outcomes.

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Assessment of the applicability and potential impact in the Dutch context.

Main Results:

Gradual retirement programs have evolved in Europe, initially linked with early retirement, and later focused on increasing labor market participation.
Existing literature provides a foundation for understanding the benefits and challenges of gradual retirement.
The Netherlands can potentially leverage gradual retirement to retain older workers.

Conclusions:

Gradual retirement is a viable strategy for a smoother work-life transition.
Policy interventions can facilitate gradual retirement to enhance labor force engagement of older adults.
Further analysis is needed to tailor gradual retirement programs for the Dutch labor market.