This research paper evaluates how part-time pension use affects the probability of retirement. The model used to estimate these effects allows individuals to switch from working to partial or full retirement and from partial retirement to full retirement. The model is estimated with individual data extracted from integral datasets of the Dutch population provided by the CBS. The dataset that estimates the models include all individuals between 51 and 65 and consists of yearly individual data from 2005 till 2008. The models also estimates how several individual household characteristics and characteristics from an individual’s work environment affect the transition to retirement. The results from the model indicate that part-time pension use increases the probability of retirement. This finding is contrary to the popular belief that part-time pensions induce individuals to continue working beyond the statutory retirement age.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.

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