Retirement Patterns and Employee Benefits: Do Benefits Matter?

This article investigates the impact of postretirement employee benefits on the likelihood that workers expect to retire before age 62 and age 65. Results show that postretirement pension benefits and the availability of retiree health benefits have a significant influence on workers' retirement age expectations. Individuals with a defined benefit plan are 43 more likely to expect to retire before age 62 than individuals with a stand-alone defined contribution plan. Furthermore, the probability of expecting to retire before age 62 increases by 59 if retiree health insurance is offered.

Labor Force/Economic Status/Retirement Behavior/Benefit Formulas

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