Does retirement affect cognitive functioning?

Abstract

This paper analyses the effect of retirement on cognitive functioning using a longitudinal survey among older Americans, which allows controlling for individual heterogeneity and endogeneity of the retirement decision by using the eligibility age for social security as an instrument. The results highlight a significant negative effect of retirement on cognitive functioning. Our findings suggest that reforms aimed at promoting labour force participation at an older age may not only ensure the sustainability of social security systems but may also create positive health externalities for older individuals.

High-Density Lipoprotein Cholesterol Level Relates to Working Memory, Immediate and Delayed Cued Recall in Brazilian Older Adults: The Role of Cognitive Reserve

“…In individuals with healthy cognitive functioning, these mechanisms contribute to the adaptation of brain activity when the task difficulty level is increased and thereby enhance cognitive performance [4]. Empirically corroborating the predictions of the cognitive reserve concept, both correlational and causal evidence showed that longer education in early life, cognitively demanding occupation in midlife, and cognitive leisure activity in midlife and old age contribute to the buildup of cognitive reserve during the life course and are related to better cognitive functioning such as memory and executive functioning in old age [5,6,7,8,9,10,11,12,13,14,15,16,17]. …”

Cognitive Reserve and Social Capital Accrued in Early and Midlife Moderate the Relation of Psychological Stress to Cognitive Performance in Old Age

“…In individuals with healthy cognitive functioning, these mechanisms contribute to the adaptation of brain activity when the task difficulty level is increased and thereby enhance cognitive performance [4]. Empirically corroborating the predictions of the cognitive reserve concept, evidence showed that longer education in early life, cognitively demanding jobs in midlife, and leisure activities in midlife and old age contribute to cognitive reserve during the life course and are related to better cognitive functioning such as memory and executive functioning in old age [5-17]. Another research line related to the concept of reserves concerns social capital [18, 19].…”

A cross-country comparison of math achievement at teen age and cognitive performance 40 years later

“…Past studies have found that working until higher ages results in greater investment in cognitive skills, higher participation in on-the-job-training, healthier lifestyles, and greater mental activity levels (Bonsang, Adam, and Perelman 2012). The large differences in sexspecific employment, in particular the entry of the female population into the labour market that has taken place at different times across the countries considered (Boeri, Del Boca, and Pissarides 2005), may additionally account for cross-country variation in cognition.…”