Part-time pension is not a panacea for labor participation

A specifically designed survey in the LISS panel (Longitudinal Internet Studies for the Social Sciences), based on vignettes, shows that the preference for partial retirement
is high. The enthusiasm for partial retirement is about the same for people with different educational levels, genders and household incomes. Many people work longer if they can make use of a partial retirement provision. However, this positive participation effect is canceled out by the fact that others reduce their hours worked and start (partially) retiring at younger age. On balance, the possibility of a part-time pension does not lead to an increase in the number of hours worked. The possibility of a partial retirement does, however, lead to working longer if it is made financially attractive. There are however costs involved.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.


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