[How successful are older employees in the timely implementation of retirement plans? : Social differences in concordance between planned and realized retirement age].

BACKGROUND

Retirement age limits of the pension system provide guidelines for the individual planning of retirement from employment. Empirical evidence shows that individual exit plans of older employees only delay and partly follow the raising of the retirement age by the statutory pension insurance; however, it is unclear how well the retirement plans of older employees predict the actual transition behavior and which individuals are able or unable to implement their own plans.

OBJECTIVE

Therefore, this article addresses the concordances and discrepancies between the planned and the actual age of retiring from work of older employees. Gender-specific, qualification-specific and east-west differences in the probability of retiring earlier or later than planned were examined with respect to social and regional differences of realization chances.

DATA AND METHODS

Longitudinal data of the German Ageing Survey (DEAS) were used and the planned age to stop working of the 55 to 61-year-old employees (survey year 2008) were compared with their labor status in 2014 and their actual age of retirement from work. An empirical typology of temporal correspondence or discrepancy of plan and reality of the retirement were generated. Applying logistic regression analysis several theses on social and regional differences in fulfilling the transition plans were empirically tested.

RESULTS

Original timing plans to stop or continue working were achieved by the majority of respondents. During the 6‑year observation period approximately half of the older employees realized their plans with a high agreement of the timing. Retiring earlier than planned was somewhat more frequent than working longer than intended. There was a higher probability to retire earlier and unplanned for low-skilled workers and respondents with health impairments. Women face a higher probability to stay active for longer than planned compared to men.

CONCLUSION

The planned age of exit from employment is a useful indicator for prospective action. Individual plans of older employees on when to retire are not unrealistic wishful thinking but relevant to the actual exit; however, realization of plans is not only at the discretion and control of employees themselves. Developments may occur that necessitate a change from the original plan. Deterioration of health and employment hazards increase the risk of retirement earlier than planned. Conversely, the closing of options for early retirement, such as the elimination of the early pension for women, can lead to a longer stay in employment than originally planned.