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Fact-of-the-Week: 6 February 2012


fact of the week

Early Retirement More Likely when Retiree Health Insurance Available

When employers offer retirement health insurance, the probability of early retirement increases. "Retiree health coverage has its strongest effects at ages 62 and 63, resulting in a 3.7 percentage point (21.2 percent) increase in the probability of turnover at age 62 and a 5.1 percentage point (32.2 percent) increase in the probability of turnover at age 63; it has a more modest effects for individuals under the age of 62," according to a 2011 analysis of employee retirement data.

Nyce, S., Schieber, S., Shoven, J. B., Slavov, S., & Wise, D. A. (2011). Does retiree health insurance encourage early retirement? (NBER Working Paper No. 17703). Washington, DC: National Bureau of Economic Research. Retrieved from papers.nber.org.

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