Socioeconomic Determinants of Early Retirement in Canada

Abstract

ABSTRACTIn view of the trend toward increasing early retirement observed in Canada since the 1960's, this study attempts to determine the main socioeconomic factors influencing the decision to retire before age 65 among Canadian men and women. Using data from the 1973 Canadian Mobility Study, we estimate a series of models in which retirement is measured as both the degree of involvement in the labour force and a subjective declaration of retirement status. We conclude that those Canadians who retire early tend to be single men and married women employed by others who are better educated and whose nonearned income is higher than those who retire at a later age. As anticipated, early retirement experiences are different for men and women, reflecting the more precarious position of women in the labour market.