The retirement-health puzzle: Breathe a sigh of relief at retirement?

Objectives While the health effects of retirement have been well studied, existing findings remain inconclusive, and the mechanisms underlying the linkage between retirement and health are unclear. Thus, this study aimed to evaluate the effects of retirement on health and its potential mediators. Methods Using a national household survey conducted annually from 2004 to 2019 in Japan (the Japan Household Panel Survey), we evaluated the effects of retirement among Japanese men aged 50 or older on their health, in addition to other outcomes that could be attributed to health changes associated with retirement (i.e. health behaviours, psychological well-being, time use for unpaid activities, and leisure activities). As outcomes are not measured every year, we analysed 5,794–10,682 person-year observations by 975–1,469 unique individuals. To address the potential endogeneity of retirement, we adopted an instrumental variable fixed-effects approach based on policy changes in pension-eligible ages for employee pensions. Results We found that retirement improved psychological well-being, exercise habits, and time spent on unpaid work. The psychological benefits of retirement were no longer observed for longer durations after retirement, whereas healthy habits and unpaid activities continued. Moreover, health-related improvements after retirement occurred mostly in the higher-income group. Discussion Enhancement in personal quality of life owing to increased leisure time and stress reduction from work in addition to life style changes may be key to understanding the health benefits of retirement. Considering the mechanisms behind retirement–health relationships and potential heterogeneous effects is essential for healthy retirement lives when increasing the retirement age. Highlights In line with theories, previous studies report mixed results on effects of retirement on health. Empirical evidence on mechanisms underlying the linkage between retirement and health is scarce. Retirement effects on health and potential mediators are evaluated by a quasi-experimental approach. Retirement improves psychological well-being, exercise habits, time spent on unpaid work, and satisfaction with leisure. Health-related improvements after retirement occur mostly in the higher-income group.