Mental health around retirement: evidence of Ashenfelter's dip.

Abstract in brief

• The study investigates how retirement impacts mental health, particularly depression, among European adults using panel data from the SHARE survey between 2004-2017, showing that retirement motivated by positive reasons tends to reduce depression.
• Findings suggest that retirees who planned their retirement or experienced positive circumstances experienced less depression, aligning with the concept of Ashenfelters dip, where mental health temporarily improves before settling post-retirement.
• However, retiring under negative circumstances could worsen mental health, and the long-term mental health benefit diminishes two years after retirement as individuals adapt to their new life stages.