Publication type
Journal Article
Authors
Publication date
August 27, 2026
Summary:
Retirement constitutes a major life transition with significant implications for well-being, yet whether economically vulnerable individuals benefit equally remains underexplored. Drawing on continuity theory, activity theory, and the job demands-resources (JDR) framework, this study develops competing predictions about how economic vulnerability shapes the relationship between retirement and well-being. We examine the relationship between retirement and subjective well-being among UK adults aged 50–75 and investigate whether low income, lack of pension coverage, and poor health alter these associations. We analyze 13 waves (2009–2022) of the UK Household Longitudinal Study, comprising 26,118 individuals and 180,848 person-years of observation. Fixed-effects regression models are employed to isolate within-person changes across the retirement transition. Results indicate that retirement is significantly associated with improved life satisfaction and reduced psychological distress. Contrary to continuity and activity theory, economic vulnerability did not weaken these beneficial effects. Low-income individuals experienced significantly greater improvements in both outcomes compared to their higher-income counterparts. Those without private pension coverage and those in poor health also demonstrated equal or larger well-being gains upon retirement. This is consistent with the JDR framework, which predicts that disadvantaged workers benefit most from exiting high-strain, low-reward employment. Robustness checks, including an absorbing-state retirement definition and the exclusion of COVID-19 pandemic waves, confirmed these patterns. This suggests that retirement may reduce well-being inequality, even though the vulnerable start at lower levels and differences persist after retirement. While timing is not explored, the economically vulnerable reap significant gains from retirement, and well-being should be part of discussions about longer working lives.
Published in
Work, Aging and Retirement
DOI
https://doi.org/10.1093/workar/waag013
ISSN
20544642
Subjects
Notes
Online Early
Copyright © 2026, © The Author(s) 2026. Published by Oxford University Press. All rights reserved.
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