Retirement and the Evolution of Pension Structure

TitleRetirement and the Evolution of Pension Structure
Publication TypeJournal Article
Year of Publication2005
AuthorsFriedberg, L, Webb, A
JournalJournal of Human Resources
Volume40
Issue2
Pagination281-308
KeywordsPensions, Retirement Planning and Satisfaction
Abstract

Defined benefit pension plans have become considerably less common since the early 1980s, while defined contribution plans have spread. Previous research showed that defined benefit plans, with sharp incentives encouraging retirement after a certain point, contributed to the striking decline in American retirement ages. In this paper we find that the absence of age-related incentives in defined contribution plans leads workers to retire almost two years later on average, compared to workers with defined benefit plans. Thus, the evolution of pension structure can help explain recent increases in the typical retirement age, after decades of decline.

Endnote Keywords

Retirement Behavior/Pension Plans

Endnote ID

13172

Citation Key7000