Retirement Well-being Research Articles

The Well-Being of Retirees: Evidence using Subjective Data

While previous economic research focuses on the financial well-being of retirees, this paper examines the determinants of overall well-being of retirees. Using data from the 2000 Health and Retirement Study, the strongest predictor of retirement well-being is the reason for entering retirement. If individuals were forced to retire, their well-being is significantly lower than those who chose to retire. This indicates the importance of expectations on retirement satisfaction. Additionally, health, current income, and comparison retirement income have important roles in determining overall well-being.

The Impact of Misperceptions About Social Security on Saving and Well-Being

Earlier research suggests that many people in their fifties and early sixties are not well informed about their Social Security entitlements. This paper investigates the effect of deviations between predicted and realized Social Security benefits on several measures of well-being in retirement, such as the change in consumption expenditures at retirement, a self-assessed measure of how retirement years compare to the years before retirement, and whether the individual is worried about having enough income to get by in retirement. The analysis is based upon US data from the Health and Retirement Study, following individuals over a long time period from their fifties into retirement. We find clear evidence that people who over estimated their Social Security benefits are worse off according to several measures of well being in retirement. This relationship seems to be more pronounced for respondents who claimed benefits earlier than anticipated than for those who were simply misinformed.

Retirement, Activity, and Subjective Well-Being in Israel and the Unites States

The purpose of the present study is to examine continuity and change in post-retirement leisure, and the relationship of such patterns to subjective well-being (SWB) in two national contexts. National data sets from the US (N=430) and Israel (N=383) are used to examine changes in leisure participation and their impact on SWB. Results indicate that in the US there is a general inclination toward continuity, while in Israel there are significant increases in rates and frequency of participation. In Israel some changes in activity are associated with life satisfaction, while in the US no such association is found. These differences are discussed in light of the higher pre-retirement participation in leisure activities in the US and the possibility that adjustment to retirement may be easier in more leisure-oriented societies.

Does gradual retirement have better outcomes than abrupt retirement? Results from an Australian panel study

ABSTRACTConventional wisdom promotes gradual retirement rather than an abrupt end to the working life. This paper compares the outcomes of abrupt and gradual retirement one and three years after the transition to retirement began using data from an Australian panel study. The outcomes included changes in health, positive and negative affect, wellbeing and marital cohesion. For many outcomes there was no difference between gradual and abrupt retirements, but those who retired abruptly were more likely to rate their health as having deteriorated and more likely to report better adjustment to retirement. Control over retirement decisions was also explored; it emerged as a more important factor in retirement wellbeing than whether the transition was gradual or abrupt. The absence of interaction or additive effects between the retirement pathway and the level of control over the process confirmed this result. Thus there is no simple answer to the question in the title. Retiring gradually allows time for people to make changes to their lifestyle, but having control over the timing and manner of leaving work had a greater positive impact on psychological and social wellbeing, and this persisted three years after retirement. The findings suggest that policies and employment practices that promote employees' control of their retirement decisions will enhance wellbeing in later life and facilitate longer workforce participation.

The Dynamics of Adult Education: Effectiveness of Financial Education Seminars

This study examines the impact of adult education seminars in superannuation investments for retirement has on the investment intentions and decision making of those adults attending the seminars. The socio-political context of the data is that of an aging population and a future government being unable to afford the current level of age pensions being paid, and attempting to encourage individuals to plan and provide for their own financial well-being in retirement. Three themes emerged from the data and were seen to be representative of the major issues found in adult education for financial self-sufficiency: education for knowledge, education for decision making, and education for action. In an attempt to measure the immediate impact of the seminar on the attendees decision making, the investment intentions of seminar attendees were captured at the start and end of the seminar. This was followed up three months later to see whether the intentions expressed at the end of the seminar had been implemented. The immediate impact of the seminar was to encourage the respondents to express an intention to increase their investment strategy, however when the follow-up was done three months later, the results were mixed. Some respondents who did not express an intention to change their investment strategy actually made changes, and other respondents who did express an intention to make a change, did not do so.

Working for a Good Retirement

Workers drain national resources in two ways when they retire – they begin collecting Social Security and Medicare benefits and they stop paying federal income and payroll taxes. Policies that encourage workers to delay retirement and increase labor supply could generate more gains to individuals, the retirement system, and the economy than other types of Social Security reforms. Drawing on the Urban Institute’s Dynamic Simulation of Income model (DYNASIM3), this report examines how delaying retirement for non-disabled workers would affect individual retiree benefits, the solvency of the Social Security trust fund, and general revenues. The results suggest that delaying retirement by itself does not generate enough additional revenue to make Social Security solvent by 2045. That is, even if everyone delayed their retirement by five years, benefit cuts or supplementary funding sources will be necessary to achieve solvency. However, the size of the benefit cuts or tax increases could be minimized if individuals worked longer. This additional work also substantially increases worker’s retirement well-being. Lower-income workers, to the extent they can work longer, have the most to gain from their additional labor. Policy changes that encourage work at older ages will substantially improve both economic and personal wellbeing in the future.

Honeymoons and joint lunches: effects of retirement and spouse's employment on depressive symptoms.

With hypotheses derived from a life course perspective in conjunction with life event stress and role theories, we examine whether a spouse's employment and length of retirement affect a person's postretirement depressive symptoms and whether such effects differ by gender. Analyses use pooled data from Waves 1-4 of the Health and Retirement Survey, using a subsample of married individuals who either remained continuously employed over time or completely retired since the Wave 1 interviews (N = 2,695). Recently retired men seem to be negatively affected by their spouses' continuous employment when compared with men whose wives were continuously not employed. In contrast, spouses' joint retirement has a beneficial influence on both recently retired and longer-retired men. However, for recently retired men, the positive effect of wives' retirement seems to be contingent on spouses' enjoyment of joint activities. Among women, effects of spouses' employment occur only among very recently retired wives (0-6 months). These wives report more depressive symptoms if their spouses were already nonemployed prior to wives' retirement. These results demonstrate the complexity of retirement adaptation processes and suggest that marital context plays an important role in retirement well-being.

It's All Relative: Understanding the Retirement Prospects of Baby-Boomers

The aim of this paper is to compare baby boomer retirees with previous generations on their overall level, distribution, and composition of family income and on the adequacy of this income in maintaining their economic well-being in retirement. To do this analysis we use projections of retirement income from the Social Security Administration's Modeling of Income in the Near Term (MINT) data system.In absolute terms, measured by real per capita income and poverty rates, we find that baby boomers will be better off than current retirees. In relative terms, however, many baby boomers will be worse off than current retirees. First, MINT predicts changes over time in the relative ranking of important subgroups within specific cohorts, with some subgroups experiencing substantial gains in real per capita income and other subgroups experiencing little gain over time. Second, while both pre- and post-retirement incomes are rising, post-retirement incomes do not rise as much as pre-retirement incomes. Consequently, baby boomers are less likely than current retirees to have enough post-retirement income to maintain their preretirement living standards. These findings hold up to various definitions of family income and replacement rates.

Midcourse in the United States: Does unpaid community participation replace paid work?

This study examines the links between formal community participation (defined as volunteer work for an organization) in the United States and psychological well-being, focusing on retirement as a key status transition. It draws on data from 762 American retirees and not-yet-retired older workers in the midcourse years (in their 50s, 60s, and early 70s) to examine: (1) whether unpaid community participation of retirees compensates for the loss of connectedness associated with their paid career jobs, and (2) whether community participation predicts the well-being of various subgroups of retirees. We find little difference in the community participation of midcourse Americans by their retirement status. But community participation does predict the well-being of retirees, supporting a compensatory hypothesis. Dividing the sample of retirees into those who engage in post-retirement paid work and those who do not reveals a positive association between community participation and well-being for non-workers only. Community participation appears especially salutary for the well-being of some subgroups of retirees in the United States (men more than women, those with less income, and those in poor health).

Is Retirement Good or Bad for Subjective Well-Being?

Retirement has been viewed either as a transition that is accompanied by psychological distress or as a time of continued, or even enhanced, subjective well-being. Existing evidence is mixed, with some studies reporting retirement as positively related to well-being and others reporting a negative relationship or none at all. Our research indicates that developmental and social contexts shape an individual's retirement decisions and experiences, so that retirement should be studied in its ecological and life-course context. Research on marital quality and subjective well-being in retirement has demonstrated both similarities and differences between men and women, as well as the need to consider couples conjointly (rather than viewing individuals in isolation). Future research focusing on the retirement process as it unfolds over time and in ecological context can serve to illuminate the circumstances under which retirement promotes or detracts from the quality of life.

Gender, Risk, and Retirement

(2001). Gender, Risk, and Retirement. Journal of Economic Issues: Vol. 35, Papers From The 2001 AFEE Meeting, pp. 345-356.

Graying of Japan: Choju Shakai

Japan has completed its demographic transition and has been forced to face the aging of a substantial proportion of the population prior to other developed nations. Extreme population aging has led to increases in the demand for social services for the aged and the family, which have far exceeded existing supply of services. This article examines family relations, health services, retirement, and economic well-being of the aging population in Japan. Challenges and implications for future elder care are discussed.

When I'm 64' Public Policy Influences on Wellbeing in Retirement

Findings from a qualitative study of recently retired non-professional men in the southern metropolitan area of Adelaide, South Australia, highlighted policies that contributed to the men's feelings of increased autonomy and acceptance of retirement as a life stage; factors they related strongly to their experience of wellbeing in retirement. The policies aimed for full employment, high levels of home ownership, financial security in retirement, centralised wage fixing, high minimum wages and optional retirement age. However, the discourse of economic rationalism of Australian governments since the late 1980s appears to be placing many of these policies in jeopardy. Health workers are in a prime position to review, report and act on the effects on the health of citizens of such major policy changes. This article challenges them to do so in collaboration with the communities with whom they work.

Public Attitudes and Concerns about Population Ageing in Japan

AbstractJapan is the most rapidly ageing developed country in the world. Economic, political, and social changes will be necessary in the next 20 years as Japan attempts to adjust to the rapid ageing of its population. This paper examines survey responses by Japanese men and women regarding their attitudes toward the ageing of their country's population, concerns about the impact of anticipated demographic changes on their economic well-being in retirement, and preferences among alternative policy options for changes in the Japanese social security programme. Responses to a nationally representative survey, conducted by Mainichi Newspapers in 1992, were analysed. Key findings indicate that: (1) the Japanese are concerned about the impact of population ageing on their economic well-being in retirement, (2) most Japanese anticipate that earnings will be an important source of their retirement income, but they are worried about employment opportunities, (3) they favour increasing social security taxes instead of cutting retirement benefits, and (4) they favour raising the age of eligibility for social security benefits.

Women and Well-Being in Retirement:

Despite neater said work commitment on the part of women approachiig retirement age, work absences and intermittent careers, as well as concentration in low-wage work, ensure their continued heavy dependence on Social Security. A strong argument can be made in favor of Social Security reform that better reflects the marital status, living arrangements, and work experiences of individuals and families at the end of the twentieth century. Women would also benefit from a number of proposed reforms to the private pension system. This article highlighls the need and prospects for public policies to expand and strengthen the nation's retirement income system. It concludes the prospects for significant reform and expansion are gloomy and that longer worklives may be necessary as a result.

A recursive model of economic well-being in retirement.

Although investigators have identified some of the social and economic forces that influence levels of economic resources among elderly adults, little has been done to organize these factors into predictive lifespan models of economic well-being. Applying path analysis to data on retiring workers from the Panel Study of Income Dynamics, the present research offers a beginning recursive model. It traces the influences of demographic/family background, human capital, and work-related characteristics on economic position in retirement. Controlling for differences in labor force participation and other human capital measures, race and family background lose their direct significance, whereas sex remains directly significant in predicting economic resource levels for recently retired workers. In addition, the model estimates the direct and indirect effects played by industrial sector location and social class position. In total the structurally based capital attainment model explains 65% of the variance in a measure of economic well-being that includes retirement income and wealth.

Perceived health, life satisfaction, and activity in urban elderly: a controlled study of the impact of part-time work.

To determine whether part-time employment affects the perceived health, life satisfaction and activity of urban retirees, 25 experimental and 30 control subjects were selected randomly from a pool of 98 elderly applicants in a demonstration employment program for retirees. Program participants were hired to perform park maintenance and beautification work for 20 hours per week. Structured interviews conducted at the end of the 6-month program revealed significant, positive effects of paid employment on measures of perceived health and life satisfaction. Only one of the control subjects had found alternative part-time employment 6 months following randomization. These findings suggest that the provision of optional, paid employment opportunities can have demonstrably positive effects upon the well-being of retirees.