Older workers and their selection of partial and full retirement: Evidence from Health and Retirement Study

The purpose was to investigate older workers\u27 retirement transitions by examining factors associated with partial retirement and full retirement during a four-year period. The study used data from three waves of the Health and Retirement Study. The sample consisted of 3,268 primary respondents who were working full time in Wave 1. A conceptual model was developed based on the life-cycle retirement model, the lifecycle income hypothesis, disengagement theory, activity theory, continuity theory, lifecourse perspectives, role theory, and the findings of previous research on retirement behavior. Binary logit regression and multinomial logit regression analyses were employed for model estimation. Major findings from the multinomial logit using baseline predictors to examine partial and full retirement in Wave 3 are (1) unearned income, Individual Retirement Account and Keogh plans positively impact the likelihood of partial retirement versus full-time work, while the ownership of defined benefit plans and the ownership of defined contribution plans negatively impact partial retirement versus full-time work; (2) the number of chronic conditions positively impact the likelihood of partial retirement; (3) perceived age discrimination, age, male, and a college degree are positively associated with the likelihood of partial retirement; (4) the expected age of Social Security benefit receipt is negatively related to the likelihood of full retirement versus full time work, while the ownership of defined benefit plans, the ownership of both defined benefit and defined contribution plans, the ownership of IRA and Keogh plans, the ownership of health insurance after retirement are positively related to the likelihood of full retirement; (5) excellent and good health, and the meaning of work is more important are negatively associated with the likelihood of full retirement; and (6) age is positively associated with the likelihood of full retirement. The conflicting effects of pension plans on partial retirement and full retirement show that pension are a stimulus to encourage working although part-time, while pension plans are important as retirement incentives for the full retirement decision. Theoretical, empirical, and practical implications are presented based on the findings