Variables affecting early retirement

Abstract

The primary purpose of this study was to consider the extent to which the intent to retire early before age 65) is influenced by organizational commitment, job satisfaction, self-perception of faculty vitality, department head’s perception of faculty vitality, retirement salary, age and academic rank. A survey was administered to all male faculty (N=309) between 50 and 60 years of age and to the department heads of the respondents at a comprehensive research university. Complete data sets were received from 48% of the respondents (N=147).

Intent to retire early was assessed by one open ended question. The Organizational Commitment Questionnaire (Mowday, Steers, & Porter, 1979) was used to assess organizational commitment while the Specific Satisfactions scale (Hackman & Oldham, 1975) measured over-all job satisfaction. Self-perception of faculty vitality and department head’s perception of faculty vitality were measured with a seven point Likert scale to determine perceived level of performance as compared to departmental colleagues in research, teaching, and service. Retirement salary (the percentage of final salary available as a retirement benefit), age, and academic rank were provided by administrative offices on campus.

The variables were arranged in a fully recursive path model. Intent to retire early was significantly influenced by organizational commitment, retirement salary and self-perception of faculty vitality. Higher salaries and greater vitality led to a later intended age of retirement, while greater organizational commitment led to early retirement. Job satisfaction had a significant direct effect on organizational commitment. Both self-perception of faculty vitality and department head’s perception of faculty vitality had significant direct effects on job satisfaction. Self-perception of faculty vitality was significantly influenced by the department head’s perception of faculty vitality. Department head’s perception of faculty vitality was influenced significantly by the rank of the faculty.

Results are discussed in terms of the policies that universities might implement to influence faculty to retire at a later age. These suggestions may provide alternative to the projected imbalance of faculty supply and demand. Recommendations for future research are discussed.