The Mental Health Effects of Asset Depletion in Retirement

6 Pages Posted: 1 Oct 2018

Date Written: September 30, 2018

Abstract

Numerous studies have examined the health effect of retirement, retirement behavior, and not having assets saved for retirement, however, few have analyzed the mental health effects of running out of money during retirement. This study examines the likelihood of having mental health issues in retirement when an individual runs out of money. This research article utilizes five waves of the Health and Retirement Study, spanning from 2006 through 2014. The result suggests that individuals who are going to run out of money two years from now have an increase in the probability of having mental health issues. However, there is an even further increase in the likelihood of mental health issues when the individual actually has actually run out of money. The larger the drop in asset level (ex. $25,000 down to below $1,000 vs $5,000 down to below $1,000) the large probability of having mental health issues. With the United States currently living longer and choosing to retire earlier there increased the risk of running out of money in retirement. Which leads to an increased risk of having mental health issues throughout retirement.

Keywords: Mental Health Financial Planning Retirement HRS

JEL Classification: D

Suggested Citation

Slabach, Colin, The Mental Health Effects of Asset Depletion in Retirement (September 30, 2018). Available at SSRN: https://ssrn.com/abstract=3258098 or http://dx.doi.org/10.2139/ssrn.3258098

Colin Slabach (Contact Author)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

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