Health and Wealth in Early Retirement

TitleHealth and Wealth in Early Retirement
Publication TypeBook Chapter
Year of Publication2013
AuthorsWallace, GL, Haveman, R, Holden, KC, Wolfe, BL
EditorCouch, KA, Daly, MC, Zissimopoulos, JM
Book TitleLifecycle Events and Their Consequences: Job Loss, Family Change, and Declines in Health
Pagination261-279
PublisherStanford University
CityStanford, CA
KeywordsHealth Conditions and Status, Income, Retirement Planning and Satisfaction
Abstract

Retirement years are a precarious time for many older Americans. Even if successful in accumulating resources expected to be sufficient to maintain their pre-retirement standard of living, many retirees face unexpected adverse health shocks after retirement. Because of the uncertainty of shocks to physical and cognitive health, there exists the potential for significant deterioration in resource adequacy both at the time of retirement and into the retirement years due to their occurrence. In this study, we select a sample of new retirees constructed from the Health and Retirement Study (HRS) data and follow them during the first decade of their retirement. Using these data, we identify the nature of shocks to physical and cognitive health for which individuals are at risk during their retirement years, and estimate both the absolute and relative risk of these shocks. We then estimate the impact of the occurrence of these shocks on wealth-based measures of retirement adequacy.

Endnote Keywords

health shocks/retirement planning/retirement adequacy/physical health/cognitive health

Endnote ID

999999

Short TitleHealth and Wealth in Early Retirement
Citation Key5257