RT Journal Article
SR Electronic
T1 Retirement and the Evolution of Pension Structure
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 281
OP 308
DO 10.3368/jhr.XL.2.281
VO XL
IS 2
A1 Leora Friedberg
A1 Anthony Webb
YR 2005
UL http://jhr.uwpress.org/content/XL/2/281.abstract
AB 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.