Retirement and the distribution of intra-household wellbeing

Abstract

This study analyses the links between retirement and the distribution of intra-household wellbeing among Australian mixed-sex couples. We study the implications of own and partner’s retirement on measures of life satisfaction, financial satisfaction, and free time satisfaction using household panel data from Australia. We also measure the intertemporal effects of each partner’s retirement on wellbeing accounting for anticipation effects in the lead up to each partner’s retirement and possible adaptation effects in the years following each partner’s retirement. The results reveal evidence of gendered outcomes where in the long run, women’s retirement has negative implications on men’s free time satisfaction, while men’s retirement has negative implications on women’s financial satisfaction. On the other hand, in accordance with the hedonic treadmill model, both men and women adapt to changes in overall life satisfaction associated with their own or their partner’s retirement.