Mental retirement
Open accessAbstract
Early retirement appears to have a significant negative impact on the cognitive ability of people in their early 60s that is both quantitatively important and causal. We obtain this finding using cross-nationally comparable survey data from the United States, England, and Europe that allow us to relate cognition and labor force status. We argue that the effect is causal by making use of a substantial body of research showing that variation in pension, tax, and disability policies explain most variation across countries in average retirement rates. (In an informal manner, we are arguing that public policies that affect the age of retirement may be used as instrumental variables to generate cross-country variation in retirement behavior in order to identify the causal effect of retirement on cognition.)
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In countries with younger compared with higher retirement ages, average cognitive performance drops more.
“In countries with younger compared to higher retirement ages, average cognitive performance drops more.49”
From Dementia prevention, intervention, and care: 2020 report of the Lancet Commission (2020) · cites this paper as [49]
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Self-citation
- Authors
- Rohwedder, S., & Willis, R. J.
- Affiliations
- Tilburg University (NL)
- University of Michigan (US)
- Venue
- Journal of Economic Perspectives
- Publisher
- American Economic Association
- Published
- 2010-02-01
- Volume
- 24
- Issue
- 1
- Pages
- 119-138
- ISSN
- 0895-3309 (ISSN-L)
- PMC
- PMC2958696
- OpenAlex
- W4233822389
- Cited by
- 434
- References
- 17
- Citations by year
- 2026: 15 · 2025: 25 · 2024: 17 · 2023: 28 · 2022: 29 · 2021: 32 · 2020: 40 · 2019: 40 · 2018: 39 · 2017: 32 · 2016: 29 · 2015: 45 · 2014: 19 · 2013: 20 · 2012: 13
- FWCI
- 37.92
- Type
- journal article
- Language
- en
- Open access
- green
- www.ncbi.nlm.nih.gov
- Locations
- The Journal of Economic Perspectives (publishedVersion)
- PubMed (publishedVersion)
- PubMed Central (acceptedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- National Institute on Aging (P01AG022481, P01AG008291, P01AG026571)
- Eunice Kennedy Shriver National Institute of Child Health and Human Development (R24HD041028)
- Topics
- Social Sciences › Demography › Retirement, Disability, and Employment
- Social Sciences › Business, Management and Accounting › Accounting › Financial Literacy, Pension, Retirement Analysis
- Social Sciences › Psychology › Neuropsychology and Physiological Psychology › Aging and Gerontology Research
- Keywords
- retirement, cognitive decline, mental exercise, cognitive ability, older adults, pension policy, endogenous retirement, daily routine, mental stimulation
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