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Related Experiment Videos

Why older Americans stop working.

C J Ruhm

    The Gerontologist
    |June 1, 1989
    PubMed
    Summary
    This summary is machine-generated.

    Most people retire based on economic incentives, not health issues. Changes to private pension plans may significantly impact retirement timing more than social security reforms.

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    Area of Science:

    • Economics
    • Labor Economics
    • Retirement Studies

    Background:

    • Most individuals respond to economic incentives when deciding retirement timing.
    • A small fraction of the labor force exits due to health deterioration.
    • Current social security reforms are expected to have minimal effects on retirement behavior.

    Purpose of the Study:

    • To analyze the impact of economic incentives on retirement decisions.
    • To investigate the potential effects of private pension plan modifications on retirement behavior.
    • To highlight the need for research into the post-career transition period.

    Main Methods:

    • Analysis of economic incentive structures in retirement decisions.
    • Evaluation of the potential impact of social security and private pension plan changes.

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  • Identification of research gaps concerning the retirement transition process.

    • Main Results:

    • Economic incentives are a primary driver of retirement decisions for most individuals.
    • Private pension plan incentives could significantly influence retirement timing.
    • The transition from career to retirement remains under-researched.

    Conclusions:

    • Retirement decisions are predominantly influenced by economic factors.
    • Policy interventions targeting private pensions may offer greater leverage for influencing retirement behavior than social security adjustments.
    • Further research is crucial to understand the retirement transition phase.