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Well-Being During The Transition From Work To Retirement

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  • Lieze Sohiers
  • Luc Van Ootegem
  • Elsy Verhofstadt

Abstract

We investigate the consequences of retirement from work for the overall well-being of individuals aged 50 and above. The overall well-being is approximated by two indicators: the life satisfaction indicator which is a cognitive reflection of the satisfaction with life and a multidimensional indicator about Control, Autonomy and Self-realizations (CAS). The latter indicator is related to the capabilities concept (specifically agency-freedom) of Sen (1985, 1999). It evaluates overall well-being by the level of agency or the ability of people to pursue the things they want to do and be the humans they want to be. Using the longitudinal Survey of Health, Ageing and Retirement in Europe (SHARE), we find that employed and recently retired respondents have no different level of life satisfaction. Older workers do report a higher level of agency-freedom when they retire. This paper additionally investigates several forms of heterogeneities in the transition from work to retirement. We consider partial, early and joint retirement, part-time and self-employment, and job quality. We also investigate whether the extra leisure time of retired respondents affects well-being. We find that there is no difference in overall well-being between being partially and fully retired, between being retired before or after the normal retirement age or between those who retire simultaneously with their partner and those who don’t. However, for some older workers, such as those employed with a low quality job, retirement can be a relief from their current employment status. Retired respondents have more care duties which affects their well-being negatively. Charity work and sport activities affect well-being positively.

Suggested Citation

  • Lieze Sohiers & Luc Van Ootegem & Elsy Verhofstadt, 2019. "Well-Being During The Transition From Work To Retirement," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/957, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:19/957
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    Cited by:

    1. Nguyen, Ha Trong & Mitrou, Francis & Taylor, Catherine L. & Zubrick, Stephen R., 2020. "Does retirement lead to life satisfaction? Causal evidence from fixed effect instrumental variable models," GLO Discussion Paper Series 536, Global Labor Organization (GLO).
    2. Lieze Sohier & Bart Defloor & Luc Van Ootegem & Elsy Verhofstadt, 2022. "Determinants of the Willingness to Retire of Older Workers in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1017-1041, December.

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    Keywords

    retirement; life satisfaction; agency; CASP; aging; well-being;
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