Retirement timing and changes in quality of life: a retrospective analysis of transition from employment to old-age retirement in Finland

Retirement marks a significant life transition that is often accompanied by profound changes in perceived quality of life (QoL). The direction and magnitude of those changes depend on multiple factors whose combined effects remain under-researched. This study analyses the association between retirement timing and perceived changes in overall QoL and looks at how this association is mediated by changes in self-rated health, coping, satisfaction with leisure time, social relationships, and income adequacy. We use a register-supplemented cross-sectional survey conducted in 2022 among 2 212 old-age retirees who were previously employed and who retired in 2020 or 2021. Change in QoL and its domains is measured by comparing current perceptions with retrospective assessments of QoL pre-retirement. We apply the KHB method to decompose the association of retirement timing with QoL into direct and indirect parts to evaluate the role of each mediator. Before retirement, QoL was lowest for those retiring at the earliest eligibility age and highest for those who postponed retirement by at least 12 months. QoL increased most among the former and remained nearly unchanged among the latter. Most of the increase in QoL for those retiring at the earliest eligibility age was explained by improved coping and increased satisfaction with the amount of leisure time. Our results add to the multidisciplinary knowledge on retirement and suggest that retirement timing can act as a mechanism to improve QoL once employees have reached their statutory retirement age.