Ageing is a problem for most Western societies. In trying to tackle this issue, which potentially can upset intergenerational solidarity, nations have begun to reform their welfare states. One such...Show moreAgeing is a problem for most Western societies. In trying to tackle this issue, which potentially can upset intergenerational solidarity, nations have begun to reform their welfare states. One such reform type popular regarding pension schemes is that of implementing active ageing policies (AAP’s). These policies aim to persuade people not to retire early and to increase the legal retirement age. The Netherlands was one of the first countries to implement these policies, but are these policies effective in that country? This thesis has looked at the age and the total number of early retirees of the Dutch population in the ESS questionnaire rounds one to nine to see if a noticeable time trend exists. It also has explained what makes an individual decides to retire based on the Life-cycle Hypothesis of consumption. Using OLS and conducting multiple time-series regressions, it was sought out what factors influenced age and early retirement and if a time-trend on the average age of the respondents and the population of early retirees could be found. This thesis has found that the average age of the retired respondents increased, in line with the ageing of society; furthermore, it found out that a significant negative relationship existed between the early retired population and time. It appeared that something caused the decrease in the total number of people who went with early retirement. Regarding the income, it was found that no significant relations were found between low or high incomes and the age or early retirement of the respondent. The only significant factor in all regressions was household-level incomes, which had a significant negative effect on age and a significant positive effect on the possibility of early retirement. Overall, these conclusions are very weak since all regression models had an R2 smaller than 0.12. Also, in some instances, the used data was lacking. This thesis has concluded that a time-trend exists; respondents get older over time, and the population of early retirees is dropping. However, the question remains to what extent these trends can be directly assigned to the ageing of the population and the effects of AAP’s. Further research must therefore be conducted to determine the direct effect of AAP’s on the retirement decision making process.Show less
