This brief reviews studies, mainly by the Social Security Administration’s Retirement Research Consortium, that examine how two types of non-financial factors affect retirement decisions: the worker’s on-the-job experience and the allure of retirement activities.
The discussion proceeds as follows. The first section presents evidence that a positive work experience is a critical component in decisions of workers ages 65 and over to remain in the labor force. The second section identifies job characteristics that either incline workers to retire or to remain on the job. The third section examines how personal objectives affect work/retirement decisions. The final section concludes that non-financial benefits seem far more important than non-financial costs – both in keeping some workers in the labor force and drawing others into retirement.