Joint retirement behaviour and pension reform in the Netherlands*
Garcia,Amparo Nagore van Soest,Arthur
Garcia,Amparo Nagore
van Soest,Arthur
Abstract
We examine the effects of a major pension reform in 2015 on the joint retirement decisions of working couples in the Netherlands. The reform abolished the partner allowance, a state pension supplement for a nonworking partner below the state pension age. At the same time, actuarially generous early retirement arrangements were made less attractive. Using rich administrative data, we estimate a multivariate mixed proportional hazards model that distinguishes between several sources of joint retirement: financial incentives, other causal mecha-nisms that make retirement of one spouse more likely when the other spouse retires (e.g., due to complemen-tarities in leisure or social norms) and correlated preferences (observed and unobserved heterogeneity). We find that, conditional on observed and unobserved characteristics, the reform reduced the tendency to retire jointly and argue that this is not only due to a change in financial incentives but also to a change in the social norm.
Description
Publisher Copyright: © 2022 The Author(s)
Date
2022-10
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
Household labour supply, Ageing, Partner allowance, Early retirement, SOCIAL-SECURITY, RESPONSES, COUPLES, AGE, D91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making, D31 - Personal Income, Wealth, and Their Distributions, J26 - Retirement ; Retirement Policies, SDG 1 - No Poverty
Citation
Garcia, A N & van Soest, A 2022, 'Joint retirement behaviour and pension reform in the Netherlands*', Journal of the Economics of Ageing, vol. 23, 100401. https://doi.org/10.1016/j.jeoa.2022.100401