This study uses the German SAVE panel study in order to estimate the effect of
intergenerational transfers on the expected retirement entry age of
individuals. The literature in this field typically estimates the transfer
effect on the actual retirement probability. We suggest to base the analysis
on the expected retirement age instead. This entails two methodological
advantages: First, it is possible to exploit the within individual variation
for the entire sample (even of those who do not retire) and thereby permits to
analyze the life-cycle considerations of younger age groups. Second, the
effect size can easily be expressed in terms of time and thereby monetary
opportunity costs. We find that heirs expect to retire earlier, even when
receipts are expected to some degree. Specifically, heirs plan to retire four
to five months earlier and thereby accept costs in the form of foregone income
and pension entitlements corresponding to 20-30% of the inheritance
