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When do committed employees retire? The effects of organizational commitment on retirement plans under a defined‐benefit pension plan
Author(s) -
Luchak Andrew A.,
Pohler Dionne M.,
Gellatly Ian R.
Publication year - 2008
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20233
Subject(s) - pension plan , continuance , plan (archaeology) , pension , organizational commitment , business , value (mathematics) , labour economics , actuarial science , economics , finance , management , psychology , social psychology , archaeology , machine learning , computer science , history
The question of when committed employees retire is important to consider under a defined‐benefit pension plan, which credits employees with benefits of lower overall value for retiring either too early or too late. We find employees with higher levels of affective commitment more likely to plan to retire later and past the age when it is most financially attractive for them to leave the organization. In contrast, employees with moderate to high levels of continuance commitment plan to retire earlier and at ages when it is most attractive for them to do so. Implications for HR policy and practice are discussed. © 2008 Wiley Periodicals, Inc.