John W. R. Phillips National Institute on Aging 16 th Annual Meeting of the Retirement Research Consortium August 7-8, 2014 Comments do not necessarily.

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Presentation transcript:

John W. R. Phillips National Institute on Aging 16 th Annual Meeting of the Retirement Research Consortium August 7-8, 2014 Comments do not necessarily reflect the views of the federal government.

 Research has examined the factors the are associated with retirement (e.g. wealth, health, pensions/insurance systems)  Given improved healthy life expectancy, concerns about savings/pension changes and strain on social insurance systems, working longer seen as a way to improve economic well- being.  What about other dimensions of well-being? How can we tell, overall, how people are doing?

“Gross National Product … counts air pollution, and cigarette advertising, … It does not allow for the health of our children, the quality of their education or the joy of their play… it measures everything, in short, except that which makes life worthwhile.” Robert Kennedy, 1968

 2009 Commission on the Measurement of Economic Performance and Social Progress  Governments should measure well-being to assess societal progress because market-based measures do not capture life quality  2013 National Research Council Study on Subjective Well-Being  SWB measures offer opportunity to improve understanding of factors that contribute to better lives  Assess the effects of events/policies without explicitly asking people to focus their attention on them  More surveys now include some measure of SWB

 Positive Affect Predicts  Reduced mortality  Maintenance of physical activity over time  Stroke recovery  Onset of frailty  Income and unemployment are two of the most important and reliable determinants of SWB  Unemployment exerts a larger negative influence than the associated reduction in income.  Importantly, SWB has shown people don’t like commuting with their bosses

 Use methods to address challenges identifying impact of retirement on SWB  SEM of retirement, income, SWB  Cross-national pension variation as IV  Use comparable measures from HRS and SHARE: life satisfaction and depression  Find retirement has a positive effect on life satisfaction

 Evaluative well-being: Global judgments of overall life satisfaction or purposeful engagement/personal growth  Experienced well-being : Reports of momentary positive and rewarding, or negative and distressing states connected to time-use/activities

From NRC Report:  “Although life evaluation, positive experience, and negative experience are not completely separable—they correlate to some extent—there is strong evidence that multiple dimensions of SWB coexist. ExWB is distinctive enough from overall life evaluation to warrant pursuing it as a separate element in surveys; their level of independence demands that they be assessed as distinct dimensions.”

 On a scale from 0 to 10 where 0 means completely dissatisfied and 10 means completely satisfied, how satisfied are you with your life?  I have a sense of direction and purpose in my life.

 Instruct respondent to focus on activities  How did you feel when you were working or volunteering?  Happy?  Frustrated?  Bored?  Pain?  Interested?  Etc.

Kahneman, D. & Deaton, A. High income improves evaluation of life but not emotional well-being. PNAS, 2010.

 “I just realized that in order to have a sense of well-being, I needed to be engaged in something that made a difference to people,” Source: Squared Away Blog, “A Short-Lived Retirement”

 Consider other measures to capture different dimensions of SWB as these may vary importantly over a diverse older population  Longitudinal transitions (work/retirement) could be very informative  HRS, ELSA and SHARE all adopted (or are adopting) comparable experience-based measures to compliment evaluative measures  Can inform about non-economic benefits of extending the work life – work keeps people socially engaged (prevents loneliness/SI), cognitively engaged (slows ARCD), etc.