Employment Relations

Publications (by Dionne Pohler)

Publications (by Dionne Pohler)

The Employee Psychology of Retirement and Pensions

Employment Relations Retirement

Are committed employees disadvantaged by retiring too late? What do employees think of their pensions? Understanding the employee psychology surrounding retirement and pensions is important in an era where many lament the replacement of employer-sponsored defined-beneift pension plans with defined-contribution plans.

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The Employee Psychology of Retirement and Pensions

Luchak, A., & Pohler, D. (2010) Pensions as Psychological Contracts: Implications for Work Outcomes. Industrial Relations, 49(1): 61-82

Luchak, A., Pohler, D., & Gellatly, I. (2008) When Do Committed Employees Retire? The Effects of Organizational Commitment on Retirement Plans Under a Defined-Benefit Pension Plan. Human Resource Management, 47(3): 581-599

Pensions as Psychological Contracts: Drawing on psychological contract theory, we develop predictions regarding the moderating influence of the meaning employees assign to their marginal quit costs, as well as on the role of stayer perceptions and saver effects, on various work outcomes under a defined-benefit pension. Results show pension incentives can have favorable or unfavorable effects depending on whether employees perceive them as supportive relational contracts or as low-trust transactional contracts. Read a summary of this article here.

When Do Committed Employees Retire? 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.

Are committed employees disadvantaged by retiring too late? What do employees think of their pensions? Understanding the employee psychology surrounding retirement and pensions is important in an era where many lament the replacement of employer-sponsored defined-beneift pension plans with defined-contribution plans.

2017-01-24 20:29:21