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Retirement Expectations and Satisfaction with Retirement Provisions
Author(s) -
Bresser Jochem,
Soest Arthur
Publication year - 2015
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12079
Subject(s) - pessimism , optimism , economics , pension , life satisfaction , subjective well being , job satisfaction , panel data , demographic economics , actuarial science , labour economics , econometrics , psychology , happiness , social psychology , finance , philosophy , management , epistemology
This paper investigates the relationship between subjective expectations regarding the replacement rate of income at retirement and several measures of pension satisfaction. We use panel data on D utch employees, analyzed with fixed effects models, allowing for correlation between unobserved heterogeneity in satisfaction and optimism or pessimism in expectations. The level of the expected replacement rate is found to be positively related to satisfaction: respondents who revise their expectations of the level of their replacement rate upwards tend to become more satisfied with their pension provisions, in particular with the level of the expected benefits. We do not find robust evidence for a relationship between uncertainty and pension satisfaction.