Health, pensions, and the retirement decision: evidence from Canada.

This article examines, on the basis of longitudinal data from the Canadian Survey of Labour and Income Dynamics, the effects of health and employer-provided pensions on retirement decisions, which have not been studied simultaneously in the Canadian context. The results indicate that employer-provided pensions have substantial and significant incentive effects on retirement behaviour. Having poor health substantially increases the likelihood of entering retirement, by up to 25 percentage points. The results corroborate previous evidence regarding the relative importance of attenuation and justification bias in self-reported health measures. Further, the results confirm U.S. and European evidence that employer-provided pensions and health are significant determinants of retirement.