Drawing on an extensive administrative dataset, I use reform-induced inter-industry variations in mandatory retirement legislation, thereby separating this factor from other retirement determinants, such as financial incentives. I find that the demand-side determinants through mandatory retirement do affect retirement patterns: the exit rates from employment are estimated to be 10% higher when mandatory retirement is possible. This effect is mostly driven by individuals with high earnings, steep wage profiles and good health. Second, as the mandatory retirement age coincides with the full-rate age, I reveal a previously unexamined determinant of the bunching in retirement distribution at this age. Mandatory retirement is estimated to explain 12% of the observed spike at the full rate.