Yahoo Finance Could an Early Retirement Help You Live Longer?
You should plan to retire sooner rather than later if you want to live longer. At least that's the conclusion of a 2017 study in the journal Health Economics, which has linked early retirement with longer lifespans. The study, which was conducted in the Netherlands, considered the mortality of civil servants who took advantage of a temporary government program that would let them retire as early as age 55.
However, the secret to maximizing your chances of living longer isn't so simple. "I think it's a little more complicated than just retiring early," says Ben Barzideh, wealth advisor with finance firm Piershale Financial Group in Crystal Lake, Illinois. The circumstances under which someone retires, their health and how they spend their time after leaving the workforce could all contribute to a person's longevity.
Read on to learn more about the recent findings, gather key takeways from experts and decide for yourself if an early retirement fosters well-being and a longer life.
[See: 10 Ways to Gradually Retire.]
There's conflicting research on the connection between retirement and life expectancy. While some studies show workers planning an early retirement could increase their lifespan, other research suggests different findings.
The 2017 study from the Netherlands found that men who retired early were 2.6 percentage points less likely to pass away within the next five years. The sample of women included in the study was too small for the research to draw any conclusions on the effect of early retirement on female workers. An earlier paper -- The Health Consequences of Retirement -- published in 2014 by the University of Wisconsin System, found that retiring could provide people with more leisure time that could lead to the adoption of healthy habits such as increased exercise and reduced smoking. It relied on data provided by 6,276 individuals through the Health and Retirement Study, organized by the University of Michigan and the National Institute on Aging.
In addition to better habits, an early retirement may foster improved health by reducing stress. "If someone has been in a demanding profession, I can imagine [retirement] could come as a relief," says Jeffrey Arnett, senior research scholar in the department of psychology at Clark University in Worcester, Massachusetts.
However, other studies don't paint the same picture of early retirement. A 2016 study published in the Journal of Epidemiology and Community Health found healthy people who worked a year later lowered their chance of death by 11 percent. Like the University of Wisconsin study, this report used information from the Health and Retirement Study and focused on nearly 3,000 men between the ages of 50 and 62. And a 2016 paper published by the Journal of Health Economics estimated retirement increased a man's chances of becoming obese in the next two to four years by 12 percent.
[See: How to Save $1 Million by Retirement.]
The drawbacks of early retirement. Joe McLean, managing partner of financial advisory firm Intersect Capital LLC in San Ramon, California, knows firsthand that people can have vastly different experiences when retiring early.
McLean's mom retired at age 59 and now, at age 78, still enjoys a fulfilling and active retirement. However, McLean's dad also retired early but had a different experience. He left the workforce at 61 and passed away at age 66. While McLean's mom has been pursuing different interests in retirement, his dad didn't have the same drive. "He didn't really have a plan," he adds.
While it's hard to quantify how much personal attitudes toward retirement play into life expectancy, some researchers have been delving into the topic. Oliver Robinson, program leader and senior lecturer in the department of psychology at the University of Greenwich in London, led a study published in 2011 that explored how retirees viewed their change in work status. Those who saw retirement as a challenge or a liberation were more likely to feel positively about retirement than those who saw it as a loss or a restriction.
A related issue may be the circumstances under which someone retires. "It depends hugely on if it's your choice or not," Arnett says. Those forced into retirement because of a layoff may be less likely to embrace the possibilities of their new free time. Meanwhile, people who retire early because of poor health could die prematurely for reasons unrelated to their employment status.
Finding a purpose in retirement is paramount for health and happiness. Instead of worrying about the length of one's lifespan, McLean says people should focus on making sure their time is well-spent.
"I would begin to define new milestones for your life," McLean says. People often have goals throughout their life and then stop planning once they reach retirement, he adds. He further suggests people look internally to consider what they want out of their retirement years rather than what society says is the norm. "Don't use other people's retirements as the definition of what yours should be," he says.
Barzideh says those who are single or widowed may benefit from working to create new connections later in life. Without the camaraderie of the workplace or no spouse at home, loneliness can become an issue for early retirees. Feeling isolated can also bring health risks such as an increased chance of heart disease and stroke.
[See: Your 10-Step Checklist to Retire in 2018.]
The bottom line: While some studies suggest leaving the workforce can have positive health benefits, before you submit your notice, make sure you plan for retirement early on and establish healthy habits to boost your standard of living, and potentially, live longer.
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