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·	From Theory To Practice

The existing theoretical and empirical literature on the determinants of retirement highlights that retirement decisions generally respond to market incentives such as the person’s expected wage and job opportunities as well as pension benefits from public and private plans. As well, they are sensitive to the persons particular circumstances, especially their health and wealth (and hence ability to afford to retire).

But existing data, however, has serious weaknesses, in part because all of the determinants of retirement are not available in a single data set. In particular, it is generally very difficult to incorporate the features of public and especially employer pension plans into data sets that have other determinants of retirement. The weakness is particularly pronounced with respect to employer plans, especially because they have a wide range of features that are designed specifically to influence retirement decisions.