<p>Loneliness among older adults represents a significant public health concern with far-reaching social and economic implications, currently emphasised by a large cohort of Baby Boomers making the transition into retirement and the proposed extensions to retirement age in many countries. This paper investigates the impact of retirement on loneliness using two decades of detailed longitudinal data from Australia that ask respondents uniquely about their feelings of loneliness in every wave (year). Employing a fixed-effects instrumental variables (FE-IV) strategy, we exploit the eligibility threshold for the Australian Age Pension as an exogenous determinant of retirement decisions. Our analysis reveals no statistically significant effects of retirement on loneliness, a result consistent across various demographic groups and individual circumstances. These findings suggest individuals mostly adapt to retirement successfully, and that retirement itself may not substantially alter older adults’ social connectedness. Policy efforts aimed at reducing loneliness might therefore consider factors beyond retirement transition, focusing instead on promoting sustained social engagement throughout later life.</p>

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The impact of retirement on loneliness: Evidence from Australia

  • Johannes S. Kunz,
  • Trong-Anh Trinh,
  • Michael Berk,
  • Arul Earnest,
  • Lidia Engel,
  • Kate Filia,
  • Long Khanh‑Dao Le,
  • Michelle H. Lim,
  • Helen Skouteris,
  • Michael A. Shields,
  • Cathrine Mihalopoulos

摘要

Loneliness among older adults represents a significant public health concern with far-reaching social and economic implications, currently emphasised by a large cohort of Baby Boomers making the transition into retirement and the proposed extensions to retirement age in many countries. This paper investigates the impact of retirement on loneliness using two decades of detailed longitudinal data from Australia that ask respondents uniquely about their feelings of loneliness in every wave (year). Employing a fixed-effects instrumental variables (FE-IV) strategy, we exploit the eligibility threshold for the Australian Age Pension as an exogenous determinant of retirement decisions. Our analysis reveals no statistically significant effects of retirement on loneliness, a result consistent across various demographic groups and individual circumstances. These findings suggest individuals mostly adapt to retirement successfully, and that retirement itself may not substantially alter older adults’ social connectedness. Policy efforts aimed at reducing loneliness might therefore consider factors beyond retirement transition, focusing instead on promoting sustained social engagement throughout later life.