Identifying factors affecting the early retirement decisions of employees: Meaning for Vietnam to reduce the potential labour shortages due to the population ageing

Nguyen Thi Thu Ha


 As the proportion of the elderly population (those aged 60 and over) keeps increasing quickly in most countries in the world, issues related to older people’s employment behavior have drawn a great deal of public attention. The ageing workforce will result in the labor shortage and place a huge burden on the public pension system in the near future. Therefore, governments are encouraging older workers to continue working later in life, and to delay their retirement to offset the dependence on the support of younger workers. In the attention to delay the retirement age it is interesting and important to identify what factors affect employees’ decisions to early retire. This paper aims to identify factors affecting employee’s decisions to early retire by critical reviewing relevant literatures, which provides administrators and researchers with a specific and deeper view of early retirement intentions of older workers. Then this paper will give recommendations for enabling extended their working lives as well as for reducing the potential labor shortfall for Vietnam in the near future when the society becomes older.

Received: 11th­ April 2016; Revised: 27th September 2016; Accepted: 10th October 2016


Affecting; factors; older workers; retirement decisions; the ageing workforce.

Full Text:

 Subscribers Only


Arkani, Sepideh and Gough, Orla. 2007. “The impact of occupational pensions on retirement age.” Journal of Social Policy 36 (2): 297-318.

Arskey, Hilary et al.. 2005. Carers’ aspirations and decisions around work and retirement. University of York: Department for Work and Pensions (DWP), Research Report No 290.

Barr, Nicholas 2010. “Retirement age: a good news story”. British Politics and Policy at LSE (12 March 2010) Blog Entry

( Accessed August 2016.

Blekesaune, Morten, Mark Bryan and Mark Taylor. 2008. Life-course events and later-life employment. Great Britain: Department for Work and Pensions (DWP).

Blundell, Richard and Sarah Tanner. 1999. “Labour force participation and retirement in the UK”. Paper prepared for National Academy of Science.

( Accessed August 2016.

Brown, Jeffrey R., Courtney C. Coile and Scott J. Weisbenner. 2010. “The effect of inheritance receipt on retirement”. The Review of Economics and Statistics 92 (2): 425-434.

Chan, Sewin and Ann Huff Stevens. 2008. “What you don’t know can’t help you: pension knowledge and retirement decision making”. The Review of Economics and Statistics 90 (2): 253-266.

Coile, Courtney and Phillip B. Levine. 2009. “The market crash and mass lay-offs: how the current economic crisis may affect retirement”. NBER Working Paper No. 15395: 1-47.

Clement, Douglas. 2004. “Welcome to retirement. Now back to work”. Fedgazette 16: 8-10.

DfES. 2000. Factors affecting retirement: literature review. United Kingdom: Department for Education and Skills (DfES).

Duval, Romain. 2003. “The retirement effects of old-age pension and early retirement schemes in OECD countries”. OECD Economics Department Working Papers No. 370: 1-46.

Dwyer, Debra Sabatini and Olivia S. Mitchell. 1999. “Health problems as determinants of retirement: Are self-rated measures endogenous?” Journal of Health Economics 18 (2): 173-193.

Encel, Sol and Helen Studencki. 2004. “Older workers: Can they succeed in the job market?” Australasian Journal on Ageing, 23 (1): 33-37.

Gardyn, Rebecca. 2000. “Retirement redefined”. American Demographics 22: 51-57.

General Statistics Office. 2011. Population Projections for Vietnam 2009-2049.

( Accessed August 2016.

General Statistics Office of Vietnam. 2011. Fertility and mortality rates in Vietnam: Current status, trends and

differences/exceptions. The Statistics Publishing House: Ha Noi.

General Statistics Office of Vietnam. Statistical handbook in 1999, 2005, 2010, 2015 (Summary). The Statistics Publishing House: Ha Noi.

Gustman, Alan L and Thomas L.Steinmeier. 1994. “Retirement analysis, social security and pensions”. NBER Reporter, Summer: 14-18.

Hilary Arksey, Peter Kemp. 2005. Caroline Glendinning, Inna Kotchetkova and Rosemary Tozer.

Humphrey, Alun et al.. 2003. Factors affecting the labour market participation of older workers. Leeds: Department for Work and Pensions (DWP), Research Report No 200.

Leonard, B. 1999. “Growing number of older workers stay on in the job”. HR Magazine: 28.

Long, Doãn Tâm et al.. 2014. “Participation in the labor market of the elderly in Vietnam”. ( Accessed August 2016.

Mayhew, Les. 2010. Increasing longevity and the economic value of healthy ageing and working longer. London: Cass Business School, City University London.

Meadows, Pamela. 2003. Retirement ages in the UK: a review of the literature on key issues. The United Kingdom: Employment Relations Research Series No. 18: 1-86.

Mein, Gill et al.. 2000. “Predictors of early retirement in British civil servants”. Age and Ageing 29: 529-536.

Mock, Steven E and Cornelius, Steven W. 2007. “Profiles of interdependence: the retirement planning of married, cohabiting and lesbian couples”. Sex Roles 56 (11): 793-800.

O’Neill, G.L. 1998. “Managing performance and remuneration”, pp.170-179 in Managing an ageing workforce, edited by M. Patrickson and L.Hartmann. Warriewood: Business and Professional Publishing.

Parnes, Herbert S. and Sommers, David G. 1994. “Shunning retirement: Work experience of men in their seventies and early eighties”. Journal of Gerontology: Social Sciences 49: 117-124.

Parker, Simon C. and Rougier, Jonathan C. 2007. “The retirement behavior of the self-employed in Britain”. Applied Economics 39 (6): 697-713.

Patrickson, Margaret and Clarke, Marilyn. 2001. Voluntary redundancy: Its role in stimulating early retirement. Auckland: ANZAM, pp. 7.

Patrickson, Margaret and Ranzijn, Rob. 2004. “Bounded choices in work and retirement in Australia”. Employee Relations 26: 422-432.

The Ministry of Labor-Invalids and Social Affairs. 2014. "The quality of Vietnam’s young employees is low". ( Accessed August 2016.

Sainsbury, Robert James et al.. 2006. Self-employment and retirement. The United Kingdom: Department for Work and Pensions (DWP).

Salinge, Hanna van and Kène Henkens. 2010. “Living longer, working longer? The impact of subjective life expectancy on retirement intentions and behavior”. European Journal of Public Health 20 (1): 47-51.

Sheen, Veronica. 1999. Older Australians: Working for the future?: the ageing population & work in the 21st century. Melbourne, Victoria: Council on the Ageing and Committee for Economic Development of Australia.

Siegrist, Johannes et al.. 2007. “Quality of work, well-being, and intended early retirement of older workers”. European Journal of Public Health 17(1): 62-68.

Social Issues Commission of the National Assembly. 2015. Hội thảo “Chính sách bảo hiểm hưu trí và các khuyến nghị sửa đổi Luật Bảo hiểm xã hội” [Pension policy and social security act admenment conference]. ( Accessed August 2016.

United Nations. 2010. World Population Prospects: The 2010 Revision.

( Accessed August 2016.

United Nations Population Fund [UNFPA]. 2011. The Ageing Population in Vietnam: Current Status, Prognosis, and Possible Policy Response. Hanoi: UNFPA.

Vietnam Social Insurance. 2012. “Thousands of people retiring at age 35”.

( Accessed August 2016.

Vietnam Social Insurance. 2015. “Bổ sung nguồn tiền đảm bảo Quỹ bảo hiểm hưu trí: Phương án tăng độ tuổi nghỉ hưu cần có những chứng cứ khoa học”. [Additional fund to maintain the social security fund: raising retirement age needs scientific evidence].

( Accessed August 2016.

Vietnam News. 2012. “Poor working conditions lead to health problems”.

( Accessed August 2016.



  • There are currently no refbacks.



Trường Đại học Khoa học Xã hội và Nhân văn

Đại học Quốc gia Hà Nội

ISSN 2354-1172