Impact of retirement on life satisfaction

Abstract

This thesis examines the impact of retirement on life satisfaction using data from the SHARE survey. The study shows that retirement generally leads to a moderate increase in life satisfaction, particularly in the short term, as individuals are freed from work pressure and have more personal time. However, the positive effect diminishes over time and sometimes becomes negative, suggesting that retirement does not guarantee a long-term improvement in well-being. Key factors such as gender, health status, marital status and income influence how individuals experience retirement. While gender differences are minimal, people in better health, with strong social support and a stable financial situation experience a more positive transition to retirement. Conversely, people facing health problems or financial insecurity experience more difficulties. The study underlines that retirement often reinforces existing inequalities. Policymakers should take these factors into account when developing pension reforms, ensuring that retirement is seen as an important life transition that requires tailored support to improve quality of life.