Retirement return migration from Sweden

This study deals with return migration among immigrants in Sweden who are between 51 and 80 years old. An important question regards the impact of retirement on return migration. Some circumstances connected to the withdrawal from the labour market suggest an increased propensity to return, such as the transition from a wage income to a pension, which weakens the link between place of residence and income. In addition, patterns of return migration at the end of working life may indicate whether or not temporary migration is a planned strategy. It is found that when reaching the age of 65, the legal retirement age in Sweden, the probability of return migration increases, in particular for men. The effect of retirement is immediate; the probability of return migration declines again beyond the age of 65, indicating a conscious plan to return to the home country when the labour market career is over. Furthermore, immigrants who receive early retirement compensation have a considerably higher probability of return migration compared to those who are not retired. These clear "retirement effects" show that return migration can be an important ingredient in the welfare optimization strategies of migrants. When it comes to income selectivity, the analysis shows that there is a positive selection, something that is expected when migrants are target savers with a temporary migration strategy.