Leaving the labour market: the impact of exit routes from employment to retirement on health and wellbeing in old age

Abstract

The study analyses whether and to what degree specific routes into retirement affect older people, i.e. the relationship between heterogeneous exit patterns and post-retirement health and wellbeing. We used longitudinal data from two points in time; data related to were collected in 1993, 1994, 1995 and 1996 and data related to were collected in 2002 and 2003 ( = 589). We focused on older people (55+ at ) who were employed at and retired at . We used confirmative factor analysis to identify identical measures of health and wellbeing at both and . Hence, we were able to control for pre-retirement health and wellbeing when evaluating the effects of different exit routes. These routes were defined as dependence on incomes from sickness benefit, disability pension, part-time pension, unemployment insurance and active labour market programmes. Our initial structural equation model showed a clear relation between exit routes and post-retirement wellbeing. People who prior to retirement were pushed into social benefit programmes related to health and unemployment were significantly worse off as retirees, especially those with health-related benefits. However, these relationships disappeared once pre-retirement wellbeing was added to the model. Our main conclusion is that post-retirement wellbeing first and foremost is a consequence of accumulation of advantages and disadvantages during the life course. Both labour market exit routes and post-retirement wellbeing can be seen as outcomes of this process. There are no independent effects of the retirement process. Judging from our findings, there is no reason to believe that involvement in social security programmes allowing early retirement on health grounds has any additional negative consequences for health and wellbeing.

Retirement as a lens for socioeconomic differences in Cognition and well-being

“…This was empirically supported by several studies that found no effects of retirement on different measures of well-being (Coe & Zamarro 2011;Halleröd et al 2012;Hyde et al 2004). Continuity theory assumes that people relate to their previous jobs even after retirement, so differences in societal acceptance, job prestige, and self-esteem might continue.…”

“…However, also for other groups, the work role might provide a buffer in case of other nonwork roles are posing stress and pressure on the individual (Barnett & Hyde 2001;Kim & Moen 2002). In reverse, if the work role is a source for stress, retirement would then offer a relief from this strenuous role balance (Halleröd et al 2012;Kim & Moen 2002). This could also be a rather short-term effect as suggested by Atchley (1976), who ascribes the loss of a stressful role to a 'honeymoon' phase.…”

“…In contrast to our assumption of retirement as a lens, continuity theory expects no clear change of well-being following retirement and suggests a life-course perspective (Atchley 1976;Coe & Zamarro 2011;Halleröd et al 2012).…”

Involuntary and Delayed Retirement as a Possible Health Risk for Lower Educated Retirees

“…He relates this finding to changes in disability pensions in Sweden. Halleröd et al (2012) investigated earlier cohorts and found a strong relationship between early exit routes (disability pensions, sickness benefits, unemployment benefits) and decreasing health after retirement. They conclude that post-retirement health and well-being is related mainly to pre-retirement conditions, not to the transition itself.…”

On leaving work as a calling: retirement as an existential imperative

“…Some researchers emphasise that current heterogeneous exit patterns mean that retirement no longer represents a drastic break or entry into old age (Hyde et al 2004;Sargent et al 2013). Longitudinal studies show that an individual's well-being before and after retirement seldom changes, but mainly depends on the individual's social resource position in his or her previous life (Ekerdt 2001;Hallerö d et al 2013;Hyde et al 2004;Tornstam 2005). There are, however, researchers who underline that regardless of when and in what way people retire, the process is still an important life phase.…”