Retirement Incentives and Expectations

This paper investigates the relationship between expectations concerning retirement and incentives for retirement provided by employer-sponsored pension plans and Social Security. Measures of pension wealth and broader measures including earnings, Social Security, and assets are significantly related to individuals' expectations to continue work in their 60s. Results show that individuals strongly consider these incentives when planning for retirement. However, the degree to which these incentives affect behavior varies greatly between OLS and fixed-effects estimation strategies.