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The increased popularity of bridge employment has raised questions about its consequences for well-being in late adult life. This research explored the consequences of bridge employment for the level of life satisfaction of older adults during the retirement transition period. Changes in life satisfaction were considered to be a function of the different intentions and motives for taking bridge jobs. Furthermore, the impact of bridge employment was empirically examined conditional on the voluntariness of the exit from the career job. Panel data on Dutch retirees (N = 1248) were investigated using conditional change models. The results demonstrate that older adults willing to prolong their work careers but unable to find bridge jobs reported lower levels of life satisfaction compared with full retirees not considering bridge employment. In addition, participation in bridge employment for financial motives was associated with decreases in life satisfaction compared with postretirement working based on intrinsic motives. Moreover, compared with voluntary retirement, involuntary retirement was detrimental to life satisfaction, but participation in a bridge job was found to mitigate this negative shock. These findings contribute to the understanding of the consequences of various postretirement employment trajectories for older individuals.

In many countries economic and social concerns associated with ageing populations have focused attention onto flexible forms of working as key to encouraging people to work longer and delay retirement. This article argues that there has been a remarkable lack of attention paid to the role of gender in extending working lives and contends that this gap has arisen because of two, inter-related, oversights: little consideration of relationships between gender and flexible working beyond the child-caring phase of life; and the prevailing tendency to think of end of working life and retirement as gender-neutral or following a typical male trajectory. The findings of a qualitative study of people aged 50+ in the UK challenge some of the key assumptions underpinning the utility of flexible work in extending working lives, and provide insight into the ways in which working in later life is constructed and enacted differently for men and women.

This paper studies the large concentration of retirement behavior around statutory retirement ages, a puzzling stylized fact. To investigate this fact, I estimate bunching responses to 644 pension benefit discontinuities, using administrative data on the universe of German retirees. Financial incentives alone cannot explain retirement patterns, but there is a large direct effect of statutory retirement ages. I argue that the framing of statutory ages as reference points for retirement provides a plausible explanation. Simulations based on a model with reference dependence highlight that shifting statutory ages via pension reforms is an effective policy to influence retirement behavior.

In this paper we propose an approach to investigate a model of consumption and investment with a mandatory retirement date and early retirement option; we analyze properties of the optimal strategy and thereby contribute to understanding the interaction between retirement, consumption, and portfolio decisions in the presence of both the important features of retirement. In particular, we provide a characterization of the threshold of wealth as a function of time, and we show that it is strictly decreasing near the mandatory retirement date. The threshold is similar to the early exercise boundary of an American option in the sense that if the agent’s wealth is above or equal to the threshold level, then the agent immediately retires. We also provide comparative static analysis.

One of the solutions that could be used to resource the needs of ageing populations is the encouragement of individuals to extend working lives beyond retirement, often referred to as ‘bridge employment’. Although previous studies provide important insights into individual determinants of bridge employment, there is scant research on the extent to which differences across countries and between genders exist and how these might be explained by economic and societal differences in the pension context. The determinants of participation in bridge employment are investigated among male and female retirees in 16 European countries. Multilevel models are estimated based on data from the Survey of Health, Ageing and Retirement in Europe project. It was found that where there is high expenditure on pensions there is a lower likelihood of retirees participating in bridge jobs, while strong norms that support working past retirement are positively associated with bridge employment.

PurposeThe COVID-19 pandemic forced many employees to work from home, resulting in new demands that might cause older workers to reevaluate their retirement decisions. Building on the extended Job Demands-Resources model, which explains work-related outcomes in times of crisis, this study investigated the change in older workers’ intention to continue working during COVID-19 and the role of ICT-related strain and social support during teleworking.Design/methodology/approachA two-wave longitudinal study was conducted among 1,406 older workers (i.e. 50 years or older). Data were collected before the COVID-19 pandemic (2019: T1) and during the pandemic (2021: T2). In total, 967 older workers completed the survey at both waves.FindingsOlder workers’ nearing retirement experienced a decline in intentions to continue working during the pandemic, while intentions of older workers further away from their retirement increased. At T2, the negative relationship between telework intensity and the intention to continue working was mediated by ICT-related strain. Perceived social support at work seems to buffer the negative impact of telework intensity on ICT-related strain.Originality/valueThis study provides valuable insights into factors that may stimulate older workers' workforce participation by investigating effects of ICT-related strain and social support during telework. Organizations can implement interventions that enhance job resources and reduce job demands during telework to help mitigate ICT-related strain and postpone retirement.

As the Baby-Boomer generation approaches the retirement stage of the life cycle, understanding the implications of the labour market transition for individuals' well-being is increasingly important for policy making. In this article, we assess whether individuals successfully navigate the transition from work to retirement by analysing changes in subjective well-being with retirement using Australian panel data. To account for the fact that retirement is often a choice, we exploit social security eligibility rules to identify the causal effect of retirement on well-being. We find that life satisfaction significantly improves for the large majority of individuals who voluntarily retire from the labour force. However, there are also important disparities and individuals forced to retire early do not experience gains in life satisfaction with retirement. Moreover, the negative impact of involuntary retirement is greatest for individuals from disadvantaged backgrounds. We also present new evidence on intra-household retirement spillovers by assessing the effect of one partner's retirement circumstances on their spouse's life satisfaction. The article further extends the literature by examining the mechanisms through which retirement affects individuals' life satisfaction. We find that declines in life satisfaction are in part driven by an increase in financial hardship and reduced social interactions.

Retirement decisions are multiple choice, not true–false, because retirement takes many forms. Multiple theories have been used to predict retirement and to do research on it, but rational-economic decision-making theories, often assuming intentional behavior, dominate the retirement research domain. Although employment serves both manifest (economic) and latent (psychological) functions, research on the decision to move from employment to retirement has focused on the manifest function. Economics tend to play a strong role in employees’ retirement decisions, with health probably a close second predictor. Three phases of retirement decision-making are evident: (i) imagining the possibility of one’s future life during retirement; (ii) assessing the past to help decide when to retire; and (iii) the transition to retirement. Both predictors and consequences of retirement are reviewed, with special attention given to bridge employment, the phenomenon of retirees working for pay.

Households age 60 and older bear increasing responsibility for managing retirement portfolios, and they hold the majority of financial assets in the United States. Cognitive aging studies find evidence of a decline in fluid and crystallized intelligence in old age that may impact the ability to manage money effectively. Using a large sample of older respondents, we test whether knowledge of basic concepts essential to effective financial choice declines after age 60. We find a consistent linear decline in financial literacy score after age 60. A nearly identical rate of decline among men, stockowners, older, and college-educated respondents indicates that cohort effects are not driving the results. Confidence in financial decision-making abilities does not decline with age. A separate analysis using data that include measures of cognitive ability suggests that a natural decline in both fluid and crystallized intelligence in old age contributes to falling financial literacy scores. This paper was accepted by Brad Barber, finance.