Publications
Publications
- April 2021
- Psychological Science
The Effects of Retirement on Sense of Purpose in Life: Crisis or Opportunity?
By: Ayse Yemiscigil, Nattavudh Powdthavee and Ashley V. Whillans
Abstract
Does retirement lead to an existential crisis or present an opportunity to experience a renewed sense of purpose in life? Prior research has documented a negative association between retirement and sense of purpose in life, suggesting that retirement could lead people to feel aimless and lost. We revisit these findings using a quasi-experimental approach and identify the causal impact of retirement on purpose in life. In a nationally representative panel of American adults (N = 8,113), we apply an instrumental variable analysis and use the differences in the likelihood of retirement driven by Social Security retirement incentives in the U.S. to find a sizable increase in purpose in life as an outcome of retirement. These improvements are driven by lower socioeconomic status individuals who retire from dissatisfying jobs. The findings suggest that retirement may provide an opportunity to experience a renewed sense of purpose, especially among socioeconomically disadvantaged populations.
Keywords
Citation
Yemiscigil, Ayse, Nattavudh Powdthavee, and Ashley V. Whillans. "The Effects of Retirement on Sense of Purpose in Life: Crisis or Opportunity?" Psychological Science (April 2021): 1856–1864.