• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Historical trends in labour force participation
      • Data
      • Economic models of retirement
      • The retirement hazard
      • Social Security and retirement
      • Health
      • Accounting for uncertainty
      • Joint retirement
      • Behavioural economics and retirement
      • Future course of research
    • See Also
    • Bibliography
    • How to cite this article

retirement

Michael Hurd
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

This article uses a simple life-cycle economic model of retirement to characterize the optimal retirement age and the effects of the wage rate, wealth, and the time horizon on that age. The model is then extended to include pensions, both public and private, which can produce non-convexities in the lifetime budget constraint. The model is further extended to include health effects on retirement, uncertainty and joint retirement (the coordination of retirement dates by husband and wife). The chapter concludes with a discussion of retirement in the context of behavioural economics.
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Keywords

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Article

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See Also

Financial support from the National Institute on Ageing is gratefully acknowledged. Many thanks to Susann Rohwedder for her valuable advice and suggestions.
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How to cite this article

Hurd, Michael. "retirement." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 22 July 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_A000225> doi:10.1057/9780230226203.1431

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