Retirement and mental health

This study investigates the relationship between mental health and retirement behaviour of older Europeans using longitudinal data from the first two waves of the Survey of Heath, Ageing and Retirement In Europe (SHARE). We find a significant association between retirement and mental health when controlling for other characteristics, including age, in a static regression framework. Focusing on the dynamic dimension, our results show that the impact of retirement on depression symptoms is captured typically after a few years after the event. The main finding is that retirement may induce the onset of depression symptoms, even if with a delay. This result provides one more reason for policy makers to make it possible for individuals to work longer, in a favourable working environment