Top

Social Indicators Research

Published in:

18-01-2015

Transition into Retirement Affects Life Satisfaction: Short- and Long-Term Development Depends on Last Labor Market Status and Education

Authors: Martin Wetzel, Oliver Huxhold, Clemens Tesch-Römer

Published in: Social Indicators Research | Issue 3/2016

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The effect of retirement on life satisfaction is a research topic that received a lot of attention, yet provided heterogeneous results. The current study suggests a remedy for this situation by taking two predictors of diversity (i.e. education and last labor market status) into account. We assumed that changes in social status and changes in resources influence retirement adjustment. The social status change affects retirees in the short-term, whereas individuals’ resources indicated by education predict long-term adjustment. To disentangle these processes, we contrasted exits from full-time employment and transitions from unemployment. We used data from the German Socio-Economic Panel to estimate a multi-group, multi-episodes dual change score model. The development of life satisfaction is lastingly interrupted by retirement. A short-term increase in life satisfaction was found for both transition groups but was more pronounced for those being previously unemployed. Life satisfaction develops in the long-term education-specific: retirees who have more education show almost constant life satisfaction whereas those retirees who have less education experience a decline. The results indicate that retirement entails a major change in the way people live. Adjustment to this can be characterized by two processes: A status change enfolds in the short-term. A building of new daily routines using individuals’ resources develops in the long-term. Both processes can be interpreted in terms of cumulative inequality: last labor market status differences decrease in the short-term but remain. Educational differences increase after retirement.

previous article The Determinants of Life Satisfaction Among Adolescents: The Role of Metacognitive Awareness and Self-Efficacy

next article Education, Intelligence, and Well-Being: Evidence from a Semiparametric Latent Variable Transformation Model for Multiple Outcomes of Mixed Types

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

Acock, A. C. (2005). Working with missing values. Journal of Marriage and Family, 67(4), 1012–1028. doi:10.1111/j.1741-3737.2005.00191.x.CrossRef

Atchley, R. C. (1976). The sociology of retirement. Cambridge, MA: Schenkman.

Beck, S. H. (1982). Adjustment to and satisfaction with retirement. Journal of Gerontology, 37(5), 616–624. doi:10.1093/geronj/37.5.616.CrossRef

Bösch-Supan, A., Reil-Held, A., & Schnabel, R. (2001). Pension provision in Germany. In R. Disney & P. Johnson (Eds.), Pension systems and retirement incomes across OECD countries. Cheltenham: Edward Elgar.

Crystal, S., & Waehrer, K. (1996). Later-life economic inequality in longitudinal perspective. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 51B(6), S307–S318. doi:10.1093/geronb/51B.6.S307.CrossRef

Damman, M., Henkens, K., & Kalmijn, M. (2013). Late-career work disengagement: The role of proximity to retirement and career experiences. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 68(3), 455–463. doi:10.1093/geronb/gbt001.CrossRef

Dannefer, D. (1988). Differential gerontology and the stratified life course: Conceptual and methodological issues. In G. L. Maddox & M. P. Lawton (Eds.), Varieties of aging (Vol. 1988, pp. 3–36). Berlin: Springer.CrossRef

Dekker, P., & Ester, P. (1992). Authoritarianism and beliefs about the unemployed. Politics & the Individual, 2(1), 13–28.

Diener, E., Inglehart, R., & Tay, L. (2013). Theory and validity of life satisfaction scales. Social Indicators Research, 112(3), 497–527. doi:10.1007/s11205-012-0076-y.CrossRef

Diener, E., Lucas, R. E., & Scollon, C. N. (2006). Beyond the hedonic treadmill: Revising the adaptation theory of well-being. American Psychologist, 61(4), 305–314. doi:10.1037/0003-066X.61.4.305.CrossRef

DiPrete, T. A., & Eirich, G. M. (2006). Cumulative advantage as a mechanism for inequality: A review of theoretical and empirical developments. Annual Review of Sociology, 32, 271–297. doi:10.1146/annurev.soc.32.061604.123127.CrossRef

Dorfman, L. T. (2013). Leisure activities in retirement. In M. Wang (Ed.), The Oxford handbook of retirement (pp. 339–353). New York: Oxford University Press.

Ekerdt, D. J., Bossé, R., & Levkoff, S. (1985). An empirical test for phases of retirement: Findings from the Normative Aging Study. Journal of Gerontology, 40(1), 95–101. doi:10.1093/geronj/40.1.95.CrossRef

Farkas, G. (2003). Human capital and the long-term effects of education on late-life inequality. In S. Crystal, D. Shea, & K. W. Schaie (Eds.), Annual review of gerontology and geriatrics: Economic outcomes in later life (Vol. 22, pp. 138–154). New York: Springer.

Fasang, A. E. (2010). Retirement: Institutional pathways and individual trajectories in Britain and Germany. Sociological Research Online. doi:10.5153/sro.2110.

Gall, T. L., Evans, D. R., & Howard, J. (1997). The retirement adjustment process: Changes in the well-being of male retirees across time. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 52B(3), P110–P117. doi:10.1093/geronb/52B.3.P110.CrossRef

Gallo, W. T. (2013). The association or retirement with physical and behavioral health. In M. Wang (Ed.), The Oxford handbook of retirement (pp. 325–338). New York: Oxford University Press.

George, L. K. (2009). Conceptualizing and measuring trajectories. In G. H. J. Elder & J. Z. Gieler (Eds.), The craft of life course research (pp. 163–186). New York: The Guilford Press.

Halleröd, B., Örestig, J., & Stattin, M. (2013). Leaving the labour market: The impact of exit routes from employment to retirement on health and wellbeing in old age. European Journal of Ageing, 10(1), 25–35. doi:10.1007/s10433-012-0250-8.CrossRef

Hetschko, C., Knabe, A., & Schöb, R. (2013). Changing identity: Retiring from unemployment. The Economic Journal. doi:10.1111/ecoj.12046.

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. doi:10.1080/10705519909540118.CrossRef

Huxhold, O., Fiori, K. L., & Windsor, T. D. (2013). The dynamic interplay of social network characteristics, subjective well-being, and health: The costs and benefits of socio-emotional selectivity. Psychology and Aging, 28(1), 3–16. doi:10.1037/a0030170.CrossRef

Hyde, M., Ferrie, J., Higgs, P., Mein, G., & Nazroo, J. (2004). The effects of pre-retirement factors and retirement route on circumstances in retirement: Findings from the Whitehall II study. Ageing and Society, 24(02), 279–296. doi:10.1017/S0144686X03001624.CrossRef

Kim, J. E., & Moen, P. (2002). Retirement transitions, gender, and psychological well-being: A life-course, ecological model. Journal of Gerontology: Psychological Science, 57B(3), P212–P222. doi:10.1093/geronb/57.3.P212.CrossRef

Kohli, M. (2007). The institutionalization of the life course: Looking back to look ahead. Research in Human Development, 4(3–4), 253–271. doi:10.1080/15427600701663122.CrossRef

Löckenhoff, C. E. (2012). Understanding retirement: The promise of life-span development frameworks. European Journal of Ageing. doi:10.1007/s10433-012-0241-9.

Lucas, R. E., & Donnellan, M. B. (2012). Estimating the reliability of single-item life satisfaction measures: Results from four national panel studies. Social Indicators Research, 105, 323–331. doi:10.1007/s11205-011-9783-z.CrossRef

Luhmann, M., Hofmann, W., Eid, M., & Lucas, R. E. (2012). Subjective well-being and adaptation to life events: A meta-analysis. Journal of Personality and Social Psychology, 102(3), 592–615. doi:10.1037/a0025948.CrossRef

McArdle, J. J. (2009). Latent variable modeling of differences and changes with longitudinal data. Annual Review of Psychology, 60, 577–605. doi:10.1146/annurev.psych.60.110707.163612.CrossRef

McArdle, J. J., & Hamagami, F. (2001). Latent difference score structural models for linear dynamic analyses with incomplete longitudinal data. In L. M. Collins & A. G. Sayer (Eds.), New methods for the analysis of change (pp. 139–175). Washington, DC: American Psychological Association.CrossRef

McArdle, J. J., & Hamagami, F. (2003). Structural equation models for evaluating dynamic concepts within longitudinal twin analyses. Behavior Genetics, 33(2), 137–159. doi:10.1023/a:1022553901851.CrossRef

Moen, P. (2004). Midcourse: Navigating retirement and a new life-stage. In J. T. Mortimer & M. J. Schanahan (Eds.), Handbook of the life course (pp. 269–391). New York: Springer.

Motel-Klingebiel, A., & Engstler, H. (2008). Einkommensdynamiken beim Übergang in den Ruhestand. In H. Künemund & K. R. Schroeter (Eds.), Soziale Ungleichheiten und kulturelle Unterschiede in Lebenslauf und Alter: Fakten, Prognosen und Visionen (pp. 141–159). Wiesbaden: VS Verlag.CrossRef

Mückenberger, U. (1985). Die Krise des Normalarbeitsverhältnisses: Hat das Arbeitsrecht noch eine Zukunft? Zeitschrift für Sozialreform, 7(8), 415–435, 457–475.

Muthén, B. O., & Muthén, L. K. (2011). MPlus user’s guide (6th ed.). Los Angeles: Muthën & Muthën.

Neugarten, B. L. (1996). Retirement in the life course. In D. A. Neugarten (Ed.), The meanings of age: Selected papers of Bernice L. Neugarten (pp. 221–230). Chicago: University of Chicago Press.

Ormel, J., Lindenberg, S., Steverink, N., & Verbrugge, L. M. (1999). Subjective well-being and social production functions. Social Indicators Research, 46(1), 61–90. doi:10.1023/A:1006907811502.CrossRef

Pinquart, M., & Schindler, I. (2007). Changes of life satisfaction in the transition to retirement: A latent-class approach. Psychology and Aging, 22(3), 442–455. doi:10.1037/0882-7974.22.3.442.CrossRef

Promberger, M. (2006). Arbeit, Arbeitslosigkeit und soziale Integration. Aus Politik und Zeitgeschichte (APUZ), 40–41, 7–15.

Quick, H. E., & Moen, P. (1998). Gender, employment, and retirement quality: A life course approach to the differential experiences of men and women. Journal of Occupational Health Psychology, 3(1), 44–64. doi:10.1037/1076-8998.3.1.44.CrossRef

Reitzes, D. C., & Mutran, E. J. (2004). The transition to retirement: Stages and factors that influence retirement adjustment. The International Journal of Aging and Human Development, 59(1), 63–84. doi:10.2190/nypp-rffp-5rfk-8eb8.CrossRef

Richardson, V., & Kilty, K. M. (1991). Adjustment to retirement: Continuity vs. discontinuity. International Journal of Aging and Human Development, 33(2), 151–169. doi:10.2190/6RPT-U8GN-VUCV-P0TU.CrossRef

Rinklake, A., & Buchholz, S. (2011). Increasing inequalities in Germany. Older people’s employment lives and income conditions since the mid-1980s. In H.-P. Blossfeld, S. Buchholz, & K. Kurz (Eds.), Aging populations, globalization and the labor market (pp. 35–64). Cheltenham: Elgar.

Ross, C. E., & Mirowsky, J. (2003). Social structure and psychological functioning. In J. Delamater (Ed.), Handbook of social psychology (pp. 411–447). New York: Kluwer Academic.

Scherger, S., Hagemann, S., Hokema, A., & Lux, T. (2012). Between privilege and burden: Work past retirement age in Germany and the UK. ZeS-Arbeitspapier (Vol. 04). Bremen: Centre of Social Policy Research.

Scherger, S., Nazroo, J., & Higgs, P. (2011). Leisure activities and retirement: Do structures of inequality change in old age? Ageing & Society, 31, 146–172. doi:10.1017/S0144686X10000577.CrossRef

Sen, A. (1984). The living standard. Oxford Economic Papers, 36, 74–90. doi:10.2307/2662838.

Szinovacz, M. E. (2003). Contexts and pathways: Retirement as institution, process, and experience. In G. A. Adams & T. A. Beehr (Eds.), Retirement: Reasons, processes, and results (pp. 6–42). New York: Springer.

van Solinge, H. (2013). Adjustment to retirement. In M. Wang (Ed.), The Oxford handbook of retirement (pp. 311–324). New York: Oxford University Press.

van Solinge, H., & Henkens, K. (2008). Adjustment to and satisfaction with retirement: Two of a kind? Psychology and Aging, 23(2), 422–434. doi:10.1037/0882-7974.23.2.422.CrossRef

Wagner, G. G., Frick, J. R., & Schupp, J. (2007). The German Socio-Economic Panel Study (SOEP): Scope, evolution and enhancements. Schmollers Jahrbuch, 127(1), 139–169. doi:10.2139/ssrn.1028709.

Wang, M. (2007). Profiling retirees in the retirement transition and adjustment process: Examining the longitudinal change patterns of retirees’ psychological well-being. Journal of Applied Psychology, 92(2), 455–474. doi:10.1037/0021-9010.92.2.455.CrossRef

Wang, M., Henkens, K., & van Solinge, H. (2011). Retirement adjustment: A review of theoretical and empirical advancements. American Psychologist, 66(3), 204–213. doi:10.1037/a0022414.CrossRef

Westerlund, H., Kivimäki, M., Singh-Manoux, A., Melchior, M., Ferrie, J. E., Pentti, J., et al. (2009). Self-rated health before and after retirement in France (GAZEL): A cohort study. The Lancet, 374, 1889–1896. doi:10.1016/S0740-6736(09)61570-1.CrossRef

Willson, A. E., Shuey, K. M., & Elder, G. H. J. (2007). Cumulative advantage processes as mechanisms of inequality in life course health. American Journal of Sociology, 112(6), 1886–1924. doi:10.1086/512712.CrossRef

Young, C. (2012). Losing a job: The nonpecuniary cost of unemployment in the United States. Social Forces, 91(2), 609–634. doi:10.1093/sf/sos071.CrossRef

Title: Transition into Retirement Affects Life Satisfaction: Short- and Long-Term Development Depends on Last Labor Market Status and Education
Authors: Martin Wetzel
Oliver Huxhold
Clemens Tesch-Römer
Publication date: 18-01-2015
Publisher: Springer Netherlands
Published in: Social Indicators Research / Issue 3/2016
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-015-0862-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 3/2016

Examining Mediator Role of the Social Safeness on the Relationship Between Vengeance and Life Satisfaction

Statistical and Perceived Diversity and Their Impacts on Neighborhood Social Cohesion in Germany, France and the Netherlands

Education, Intelligence, and Well-Being: Evidence from a Semiparametric Latent Variable Transformation Model for Multiple Outcomes of Mixed Types

Livelihood Assets and Vulnerability Context of Marine Park Community Development in Malaysia

Age and Gender Differences in the Relation Between School-Related Social Support and Subjective Well-Being in School Among Students

Women’s Political Empowerment and Investments in Primary Schooling in India