Abstract
Kevin E. Cahill, Michael D. Giandrea, and Joseph F. Quinn (2005)
"Are Traditional Retirements a Thing of the Past? New Evidence on Retirement Patterns and Bridge Jobs."
This paper investigates whether permanent, one-time retirements are coming to an end just
as the trend towards earlier and earlier retirements did nearly 20 years ago. We explore how common bridge jobs are among today's retirees, and how uncommon
traditional retirements have become. Methods: Using data from the Health and
Retirement Study (HRS), we explore the work histories and retirement patterns
of a cohort of retirees aged 51 to 61 in 1992 over a ten-year time period in
both a cross-sectional and longitudinal context. Bridge job determinants are
examined using bivariate comparisons and a multinomial logistic regression
model of the bridge job decision. Results: We find that one-half to
two-thirds of the HRS respondents with full-time career jobs take on bridge
jobs before exiting the labor force completely. We also find that bridge job
behavior is most common among younger respondents, respondents without
defined-benefit pension plans, and respondents at the lower- and upper-end of
the wage distribution. Implications: The evidence suggests that changes in
the retirement income landscape since the 1980s appear to be taking root. Going forward, traditional retirements will be the exception rather than the
rule.
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