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 labor shortages and huge pension systems 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 (the fewer) younger workers. In the attention to delay the retirement age it is interesting and important to understand what factors affect employees’ decisions to retire. This paper aims to identify factors affecting employee’s decisions to retire by critical reviewing relevant literatures, which provides administrators and researchers with a better view of older worker’s retirement intentions, then gives recommendations for enabling extended working lives as well as for reducing the potential labour shortfall in the near future when the society becomes older.
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