The impact of the Pension Fund on the decision to work one more year

Authors

  • Walt Woerheide Rochester Institute of Technology, 108 Lomb Memorial Drive, Rochester, NY 14623-5608, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00053-6

Keywords:

Net salary, Retirement, Defined benefit, Defined contribution, Pension

Abstract

The decision to retire or work one more year is quite complex. One factor that plays a role in this decision is the net salary derived from working one more year. The type of pension a person has, defined benefit or defined contribution, will influence whether the net salary is larger than, equal to, or less than the stated salary. The larger the net salary relative to the stated salary, the more likely an employee is to continue working. This paper defines the net salary percentage for each type of pension plan and looks at empirical estimates for these values. © 2000 Elsevier Science Inc. All rights reserved.

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Published

2000-03-30

How to Cite

Woerheide, W. (2000). The impact of the Pension Fund on the decision to work one more year. Financial Services Review, 9(1), 17–31. https://doi.org/10.1016/S1057-0810(00)00053-6

Issue

Vol. 9 No. 1 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 JAI Press Inc.

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