Rewards to Continued Work: the Economic Incentives for Postponing Retirement

28 Pages Posted: 28 Jun 2004 Last revised: 17 Oct 2022

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

Gary Fields

Cornell University - School of Industrial and Labor Relations; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: September 1983

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.

Suggested Citation

Mitchell, Olivia S. and Fields, Gary S., Rewards to Continued Work: the Economic Incentives for Postponing Retirement (September 1983). NBER Working Paper No. w1204, Available at SSRN: https://ssrn.com/abstract=305581

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

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Gary S. Fields

Cornell University - School of Industrial and Labor Relations ( email )

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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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