Atalay, K., Barrett, G. F., & Staneva, A. (2019). The Effect of Retirement on Elderly Cognitive Functioning. Journal of Health Economics, 66, 37-53. Web.
According to this article, retirement is stopping work and becoming inactive or self-employed. It is a common occurrence in life that often leads to the loss of income and social support. It is associated with significant declines in cognitive functioning among older adults. These effects were found to be particularly severe among those who retired early, and they were limited to those who had previously been employed and had no health problems.
The study conducted an experiment in which they followed a group of older adults as they transitioned out of their jobs and into retirement. They found that individuals who retired before the age of 65 had lower levels of cognitive function than those who remained employed until age 65. The authors suggest that these findings may be due to the physical changes associated with retirement and other factors like social isolation and depression, which can lead to poorer cognitive functioning. They also note that this is not a new finding; previous research has shown associations between retirement and cognitive decline in younger populations.
Additionally, the authors of this study found that retirement has a detrimental effect on the cognitive functioning of older people. The results are based on a sample of 1,175 participants aged 65 to 94, who were followed for two years after retirement. They found that while their cognitive abilities were not significantly different from those of people still working, they had significantly lower mental processing speed, verbal ability, and memory than those still employed. The authors also found that the effect was stronger for women than men; women who retired before age 65 scored 9 points lower on cognitive tests than those who did not retire. This study can provide an evidence-based approach to determining whether retirement is beneficial for the cognitive functioning of older individuals.
Hastings, J., & Mitchell, O. S. (2020). How Financial Literacy and Impatience Shape Retirement Wealth and Investment Behaviors. Journal of Pension Economics & Finance, 19(1), 1-20. Web.
This article by Hastings and Mitchell examined the relationship between retirement wealth and financial literacy, as well as the impact of impatience on retirement-related behaviors. The authors found that financial literacy has a strong impact on retirement wealth, with individuals who are more financially literate having higher levels of savings and homeownership. In comparison, those who are less financially literate tend to have lower savings and fewer years of homeownership. They also found that impatience significantly impacts retirement-related behaviors, including investment choices, retirement planning, and retirement savings. In particular, they found that impatience is associated with lower savings and higher spending during retirement.
The authors conclude their study by suggesting that retirement planning should consider financial literacy and impatience. They note that financially literate individuals are less likely to make impulsive financial decisions than those who lack this knowledge. Thus, planners should consider how this knowledge might affect their clients’ ability or willingness to plan for their future financial security.
Morris, M. H., Soleimanof, S., & White, R. J. (2020). Retirement of Entrepreneurs: Implications for an Entrepreneurial Exit. Journal of Small Business Management, 58(6), 1089-1120. Web.
In this article, the authors examined the impact that retirement has on entrepreneurs’ ability to exit their businesses successfully. While some studies have shown that retirees have a harder time transitioning out of their businesses than younger entrepreneurs, others have found no significant difference in the ability to exit between retirees and younger entrepreneurs. The authors also found that while entrepreneurship is often considered a lifelong career choice, it can be difficult to transition from business owner to retiree. The authors offer suggestions for helping entrepreneurs make this transition smoothly.
Business owners are often reluctant to retire because they fear losing their drive, passion, and motivation to continue working. However, if one does not prepare themselves in advance for retirement, taking time off occasionally or planning how to handle unexpected events that may arise during retirement, such as death or illness, is difficult. They will likely experience stress when making this transition. The authors suggest that businesses should provide support during retirement by offering classes on running one’s own business. It should further have mentorship programs for those who want help transitioning into new careers after leaving their businesses behind.
Ramnath, S., Shoven, J. B., & Slavov, S. N. (2021). Pathways to retirement through self-employment. Journal of Pension Economics & Finance, 20(2), 232-251. Web.
According to this article, retirement is a significant concern for many people today. The authors studied the pathways to retirement for self-employed individuals. They note that these pathways are similar for those who do not have a retirement plan and those who do have one. However, there are differences in how long it takes to earn income as an employee and to receive it as a retiree. The study found that self-employed individuals had many options.
The first option was to continue working and save money for retirement. The second option was to take a job outside their current occupation or in a completely different field. The third option was to continue working part-time while developing their business plan. The fourth option was to work until they died; this was the most common choice among the self-employed. However, it did not necessarily mean they would be unable to retire. Some people chose this option because it allowed them freedom from financial worries and allowed them to stay active throughout their lives.
The authors concluded that there were many ways for people like this to retire successfully, provided they had sufficient savings or could find a means to earn income outside of their jobs. They later recommended that policymakers consider ways to encourage people to continue working past age 65, such as offering tax credits for those who stay in the labor force longer than planned.