Working Paper: NBER ID: w1204
Authors: Olivia S. Mitchell; Gary S. Fields
Abstract: Using a new data file on pay and pensions, this paper presents and discusses new empirical evidence on how olde rworkers' income opportunities change as they age. It also develops a detailed description of private pension structures and the ways in which pensions reward deferred retirement. The data imply that the present discounted value of total lifetime income rises when people postpone retirement, but the size of the income increment varies with age. The data also show that some pension plans encourage early retirement while others penalize it.
Keywords: Retirement; Pensions; Labor Economics
JEL Codes: J26; J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Deferred retirement (J26) | Increased total lifetime income (J17) |
| Retirement age (J26) | Income opportunities (G19) |
| Pension plan structures (H55) | Retirement behavior (J26) |
| Deferred retirement (J26) | Increased net income (G39) |
| Retirement timing (J26) | Observed income for retirees (J26) |