Work

Fiscal Vulnerability and Adjustment to Retirement

Year: 2017

Type: article

Abstract: Much research examining adjustment to retirement overlooks the unique experiences facing individuals who do not have sufficient resources while they are working to accumulate fiscal stability post-retirement. Although retirement serves as a major transition for all individuals, the working poor and those who are financially vulnerable prior to retirement likely experience a different trajectory when they go on to retire than those who have the resources needed to maintain a high standard of living when they stop working. This study uses the 2004–2014 waves of the Health and Retirement Study to examine change in life satisfaction pre- versus post-retirement for three groups of full-time workers who go on to fully retire: those with incomes in ranges that qualify for social welfare programs (i.e., <250% of poverty – poor/near poor), those who are financially vulnerable but above qualifying thresholds (i.e., 250%-399% of poverty – financially vulnerable), and those who have sufficient fiscal resources (i.e., 400% of poverty or greater – financially stable). Controlling for baseline differences in overall life satisfaction, demographic factors, health status, job characteristics, social support and engagement, results show that although all groups experience an increase in overall life satisfaction, financially vulnerable individuals experience significantly less increase relative to poor/near poor and financially stable individuals. Sensitivity analyses reveal that the degree to which financially vulnerable individuals experience constraints over sense of personal control prior to retirement explains this increased loss. In this session we will discuss implications of these results for policy and programs that might support retirement adjustment processes.

Source: Innovation in Aging

DOI: 10.1093/geroni/igx004.4256

Authors: D. Carr, P. Moen, M. Perry-Jenkins, L. Powell, M. Smyer, L.B. Wilson