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The prospect of 20-plus years of bitterness might make retirement seem more appealing. But the real gains in happiness from retirement go not to the outshone, but to the out-of-work. Unemployment is known to damage happiness because not working falls short of social expectations. This loss of identity cannot be compensated for by unemployment benefits or increased leisure time. A paper presented at the same conference by a team represented by Clemens Hetschko of Freie Universit?t Berlin uses the same German household data to show that the spirits of the long-term unemployed rise when they stop looking for work, go into retirement and no longer clash with social norms.

Those with jobs are no happier after they retire, however, perhaps because their lives already line up with social expectations. Indeed, retiring early from work can have nasty side-effects. Another paper, co-authored by Andreas Kuhn of the University of Zurich, investigates the effect of a change in Austrian employment-insurance rules that allowed blue-collar workers earlier retirement in some regions than others. Men retiring a year early lower their odds of surviving to age 67 by 13%. Almost a third of this higher mortality rate, which seemed to be concentrated among those who were forced into retirement by job loss, was caused by smoking and alcohol consumption. If you’re in a job, even an underpaid one, hang on in ther e.

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