Early retirement patterns in Germany, the Netherlands and the United Kingdom

The main research questions dealt with in this paper are: Is the likelihood of early retirement
according to the various routes different for different groups within the working population? To
what extent do the existence of more flexible and more generous early retirement schemes result
in higher entry rates into early retirement for the working population? To what extent does the generosity differ between the various exit routes and between the countries or regime types? This will be analysed using three unique long-running panel studies, i.e. BHPS 1990-2004 (the United Kingdom), the GSOEP 1990-2005 (Germany) and the SEP 1990-2001 (Netherlands). Using a discrete-time competing-risks model the exit patterns of older workers are examined in these three very different countries in terms of their pension and social security systems. The results show that hazards into retirement and social security are significantly highest in Germany and the Netherlands
reflecting the institutional support for these exit pathways. In the United Kingdom early exit is most
common through the retirement route but restricted to specific ages. Furthermore, the observed differences in retirement hazards are related to the generosity of the routes. Replacement rates of retirement schemes are highest in Germany and the Netherlands while for all countries it is true that social security replacement rates are lower than those of the retirement schemes.