Retirement Outcomes in the Health

This study examines retireRetirement Outcomes in the Health ment outcomes in the first four waves of the 1992-1998 and Retirement Study Health and Retirement Study (HRS). The article compares by Alan L. Gustman and Thomas L. Steinmeier* outcomes under alternative definitions of retirement, deSummary that the large spike in the population scribes differences in outleaving nonretirement at age 65 obcomes among demographic This article examines retirement outserved in the 1969-1979 RHS has fallen groups, compares retirement comes in the first four waves of the from 18 to 11 percentage points in the dynamics based on self1992-1998 Health and Retirement Study HRS and that the share leaving reported retirement status, and compares retirement flows (HRS). Measured retirement is seen to nonretirement at 62 has increased from differ, sometimes substantially, with the 13 to 20 percentage points over time. in the 1990s and 1970s and between cohorts of the HRS. definition of retirement used and among The results presented here should Among other findings, meavarious groups analyzed. Moreover, help researchers improve their under„ sured retirement is seen to those differences vary with the wave of standing of the structure of the depen„ differ, sometimes substantially, the survey as respondents age. dent variable in retirement studies. with the definition of retireRetirement comprises a complex set Incorrect or arbitrary measurement of ment used and among the of flows among states representing the retirement variable may lead to a various groups analyzed. nonretirement, partial retirement, and misunderstanding of how Social complete retirement. Using the selfSecurity and related policies affect *Alan L. Gustman is Loren reported definition of retirement, 77 retirement outcomes. Thus, the imBerry Professor of Economics at Dartmouth College. Thomas L. percent of transitions continue in the proved understanding of retirement same or equivalent states between gained from this research will be Steinmeier is Professor of Economics at Texas Tech adjoining waves of the HRS, 17 percent helpful to those designing retirement University. involve a move from greater to lesser policies as they attempt to labor force participation, and 6 percent understand the effects of those involve a move from lesser to greater policies. labor force participation. Twenty-two percent of the sample report they were Introduction partially retired at some time in the first four waves, and by age 65, over a fifth This article analyzes retirement outof the population is partially retired. comes in the first four waves of the Altogether, 17 percent of the sample 1992-1998 Health and Retirement experienced a reversal in the course of Study (HRS). The article compares the survey, moving from a state of less outcomes under alternative definitions work to a state of more work. A of retirement, describes differences in comparison of retirement flows for men outcomes among demographic groups, between the HRS and the 1969-1979 compares retirement dynamics based Retirement History Study (RHS) shows on self-reported retirement status,