Private wealth and planned early retirement: An empirical analysis for the Netherlands 1994-2008

Raun van Ooijen 1, Mauro Mastrogiacomo1, Rob Euwals1
1CPB Netherlands Bureau for Economic Policy Analysis, The Netherlands, 2Netspar, The Netherlands, 3IZA, Germany, 4VU University Amsterdam, The Netherlands

We study the causal relation between wealth and retirement age. We propose three estimation strategies based on expected retirement age. The outcome variable is observed repeatedly over time. We correct first for the unobserved disutility of work by using panel data techniques. Next, we exploit information on expected wealth accumulation in order to identify the unexpected component in wealth accumulation. Finally, we exploit a quasi natural experiment based on a pension reform that has diminished pension wealth to a specific cohort of employees. In line with the literature we find a small effect of private wealth on planned retirement.

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