Does Retirement Improve Health and Life Satisfaction?

TitleDoes Retirement Improve Health and Life Satisfaction?
Publication TypeReport
Year of Publication2015
AuthorsGorry, A, Gorry, D, Slavov, SNataraj
KeywordsHealth Conditions and Status, Pensions, Public Policy, Retirement Planning and Satisfaction, Social Security

We utilize panel data from the Health and Retirement Study to investigate the impact of retirement on physical and mental health, life satisfaction, and health care utilization. Because poor health can induce retirement, we instrument for retirement using eligibility for Social Security and employer sponsored pensions and coverage by the Social Security earnings test. We find strong evidence that retirement improves both health and life satisfaction. While the impact on life satisfaction occurs within the first 4 years of retirement, many of the improvements in health show up 4 or more years later, consistent with the view that health is a stock that evolves slowly. We find little evidence that retirement influences health care utilization.

Endnote Keywords

Health Status/Retirement planning/life satisfaction/life satisfaction/public policy/social security earnings and benefits/pensions

Endnote ID


Citation Key5856