Australian baby boomers retiring ‘early’: Understanding the benefits of retirement preparation for involuntary and voluntary retirees

Abstract

The first of the baby boomers have reached retirement age, but some have retired ‘early’ with varying degrees of personal choice. Preparation for retirement can lead to well-being in later life, but few studies have considered the preparations of involuntary retirees or the pathways that link their preparations with retirement outcomes. This research draws on a sample of 304 retirees from the Ageing Baby Boomers in Australia Study (2009) to examine how preparedness for retirement relates to voluntary and involuntary retirees' life satisfaction and how this relationship is explained by psychological, activity-based, and economic theories. Preparedness predicted life satisfaction for voluntary and involuntary retirees and each of theoretical pathways was supported. Although those retiring involuntarily were less prepared than voluntary retirees, their preparatory behaviours were still associated with life satisfaction. These results suggest that retirement policy and planning initiatives should aim to facilitate a holistic approach to retirement planning for future retirees, particularly those facing an early and unexpected retirement.