Factors that influence voluntary and involuntary retirement

Abstract

The effect of early exit from the labour market over the past 20 years has been dramatic. The extent of this withdrawal has prompted a debate over the fiscal and social policy implications. Research focusing on retirement has largely been directed at examining participation rates of those aged over 50, using the Labour Force Survey (LFS) and International Labour Organization (ILO) surveys. There has been a concentration of longitudinal studies of participation rates concentrating on men's withdrawal from the labour market. This paper extends that research by examining the factors that influenced the decision-making of individuals on the timing of taking retirement, using a sample of 228 people aged between 55 and 67 with occupational pension scheme membership. The results suggest that state of health and the financial package offered by the organisation are key factors followed by the individual's attitude to retirement. Further, of the groups that emerged one could be described as being ‘pushed’ out of the labour market while another group were more inclined to ‘jump’ by factors such as a good company retirement pension package.