Non-financial determinants of retirement: A Literature Review

F.A.M. van Erp, Niels Vermeer, Daniël van Vuuren

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13 Citations (Scopus)

Abstract

Retirement is often concentrated at specific ages-in particular the 'normal retirement age' and an 'early retirement age'. Financial incentives cannot fully explain this. Moreover, the participation effect of a higher normal retirement age importantly exceeds the encompassing income effect. Based on a literature survey, we conclude that social norms, default options, and reference-dependent utility are likely explanations for the individual propensity to retire at specific retirement ages. Further empirical research on non-financial determinants of retirement is needed to fully understand individual retirement behavior.
Original languageEnglish
Pages (from-to)167-191
JournalDe Economist
Volume162
Issue number2
DOIs
Publication statusPublished - Jun 2014

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