Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age

Using a specifically designed survey, we investigate the role of the social network in shaping workers' retirement preferences. We find that the preferred retirement age is influenced by the advice and retirement decisions of coworkers, family, and friends. Workers value in particular the advice of their spouse and children and take their personal circumstances into consideration. Responses to vignette questions imply that workers increase their preferred retirement age with on average 3 months in response to a 1 year increase in the retirement age of coworkers, family and friends. Workers are particularly willing to postpone retirement if the planned retirement age was below the statutory retirement age. The results suggest that advice of the social environment and factors like 'social embeddedness' or social norms likely play a role when it comes to retirement decision-making.