Retirement Patterns of the Early and Middle Baby Boomers
AbstractDo the retirement patterns of the early and middle Baby Boomers resemble those of older cohorts? One well-documented finding from the retirement literature is that most Americans with career jobs later in life exit the labor force gradually, in stages. These stages include phased retirement, bridge employment, and reentry. Phased retirement entails a reduction in hours on one’s current job; bridge employment refers to a job change between career employment and complete labor force exit; and reentry refers to a return to the labor force following an initial retirement. Bridge employment has been the most common form of gradual retirement for much of the past three decades, at a time when older Americans are staying in the labor force later in life. A key question for policymakers is whether the retirement patterns of the Baby Boomers will resemble those of the cohorts that preceded them. We address this question using data on four cohorts of older Americans from the Health and Retirement Study (HRS), a nationally-representative longitudinal survey that began in 1992. We find that the Baby Boomers are retiring in nontraditional fashions, as their predecessors did, albeit with a later start to their transitions from career employment. This finding sheds light on how retirement pathways are emerging as societal aging accelerates.
JEL Codes: K13 Forensic Economics; J14 Economics of the Elderly; J22 Time Allocation and Labor Supply; J26 Retirement