WI21-02: Retirement in the Context of Intergenerational Transfers

Abstract

The literature examining the motivation for, and consequences of, retirement has tended to focus primarily on retirees and their spouses. However, since the decision to retire is deeply rooted in extended family dynamics—especially the exchange of economic and instrumental support across generations—the standard individual and couple-based approaches may be limited. This study aims to assess the dynamic relationship between retirement and two broad dimensions of social and family lives—important-matter discussion networks and intergenerational transfers—and characterize heterogeneity by gender and socioeconomic status in US and European countries. We summarize our findings in four regards. First, retirees who are men are more likely to discuss important matters with kin members—especially with non-resident children—after retirement. On the contrary, women retirees experience little change in important-matter discussions after retirement. Second, the change of discussion networks is observed only among men retirees with higher levels of education and assets. Third, men retirees are more likely to activate economic transfers with kin members after retirement, whereas women retirees are more involved in care work for grandchildren. Fourth, both men and women gradually increase their dependence on children by living together or moving closer to their children after retirement. We discuss genderspecific policy implications on social and family lives after retirement.