The effects of retirement on health and health care expenditure


David Laibson and Itzik Fadlon


The goal of this study is to analyze the effects of retirement on the health, wellbeing and cognition of older workers. It focuses on the potential heterogeneity of these effects across several dimensions (e.g., occupation and education level), as well as on the timing of these effects – whether changes in outcomes start immediately upon retirement or in anticipation to it. In order to get closer to understanding the welfare effects of retirement-­related policy changes, we will also examine the consequential effects on health care utilization and the associated costs.