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unfortunately you and I we've been lied
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to and it's on a really important topic
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and that is if we choose to retire early
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is that likely going to extend our
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lifespan or is it going to shorten our
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lifespan and many of us have heard both
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but fortunately there's been some
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studies that have been done and in
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today's video I want to share with you
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what the facts say and then I'm going to
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wrap up and kind of share my thoughts
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based on those facts Okay so so two of
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these reports two of these reports come
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from things that happened in the
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Netherlands one was uh a change in the
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retirement age in the Netherlands that
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allowed people to retire sooner for a
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short period of time and then later
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there was a study when the Dutch wanted
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people to continue working so they they
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changed the tax law to incentivize
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people to work longer so we have both of
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those studies and then we also have a
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study by an HR or organization here in
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the United States that surveyed folks
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that chose to retire early so let's jump
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in let's do the first study by the Dutch
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and this is one where people were
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encouraged to retire early and I was
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able to jump on a a research Library Pub
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Med actually pulled pulled down the
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report and and the study is called the
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causal effect of retirement on mortality
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evidence from targeted incentives to
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retire early this is the Dutch system
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system when they allowed people to
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retire like here in the US instead of a
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normal retirement age of 65 their their
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system changed where Dutch people could
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retire sooner than that and it it only
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was in effect for a short period of time
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but here's what the summary of that is
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and they go on to say that we find that
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induced early retirement decreases the
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probability that a man dies within 5
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years by 2.6%
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points which is significant right the
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second study I want to go through is
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from the HR department uh they they also
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have a research organization it's the
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Journal of human
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resources and it's the health
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consequences of early retirement and
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both of these studies say that you know
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it's really hard to to actually pinpoint
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whether it's cause or effect right but
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here's what the the Journal of Human
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Resources Reports say the results
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indicate that retirement's effect on
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health is beneficial and significant
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investigation into behavioral data such
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as smoking and exercise suggests that
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retirement may affect Health through
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those channels encouraging people to be
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healthier with additional Leisure Time
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many retirees practice healthier habits
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so I wanted before we jump into the the
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third study uh which was done here in
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the US by the Retirement Research Center
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for re research um I want to jump into
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an article by CNBC make it where they
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summarize some of these some of these
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findings and the headline of the article
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is you can live longer if you retire
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early here's why and they describe this
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study male Dutch civil servants over the
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age of 54 who retired early were an
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astounding 42% less likely to die over
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the subsequent 5 years compared to those
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who continued working
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and there were too few women to to be in
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that study okay let's keep going and
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then they talk about the reasons why
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that might be it it it frees up retirees
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allowing more time to invest in your
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health and that benefits you whether
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you're sleeping more exercising more or
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simply going to a doctor as soon as an
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issue arises and then second the second
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reason the article States is second
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where can be stressful and you've heard
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me talk about this right it's the it's
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the pressure on your shoulder ERS it's
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that you you carry it's it's having
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deadlines it's having to put up with
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commuting work is just stressful and
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retiring can alleviate some of that
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stress and stress unfortunately can
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cause hypertension high blood pressure a
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risk factor for various fatal conditions
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and retirees in this study were
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significantly less likely to die from
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stroke or from cardiovascular disease
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okay I'm starting to feel really good
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right so let's let's keep going G um so
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CNBC the first two articles that's good
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news it says that if we retire early
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there's a good chance there's no
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guarantees but there's a good chance
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that it's going to be beneficial to our
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healthy lifespan and our overall
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lifespan okay and those those studies
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were done in the 2018 2020 timeline and
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now we're going to come to May of 2021
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this is from the center for re for
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Retirement Research which is done at
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Boston College and the research paper is
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called do men who work longer live
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longer evidence from the Netherlands so
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before the earlier study in the
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Netherlands Dutch people were able to
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retire earlier they changed the law for
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a little bit of time but in this study
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what happened is they use they use the
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carot they incentivized people they gave
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people tax incentives to continue
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working longer right so it was it was a
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carrot both cases it was a carrot okay
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so here's here's the the center for
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Retirement Research use the data from
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this second Dutch
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situation and and first off they talk
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about why is the effect of work on
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mortality hard to measure a simple
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estimate would likely find that work
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lives and lower mortality rate are
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correlated in other words if you
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continue to work you're going to live
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longer is what a simple study would say
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say but the question is does working
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cause the worker to live longer the
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effect could actually work in the
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opposite direction Better Health may
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cause people to keep working so
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healthier people have the freedom to
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continue working in addition some other
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factors such as income could cause both
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better health and a desire to keep
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working so you can see where these are
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intertwined so it's not an easy
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question okay using the door work bonus
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as a natural experiment the door work
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bonus policy in the Netherlands use tax
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incentives to encourage working longer
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and this presents an ideal opportunity
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for a study like this um and their
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conclusion is the results indicate that
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Dutch men ages 62 to 65 induced to work
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by the policy change do live longer
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their mortality rate their mortality
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Falls at a rate that implies at least
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two extra months of longevity and up to
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two years if the effect is longer
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lasting okay so we were doing pretty
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well right we had all kinds of good news
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so so what do I think of this I think
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what really matters is is you know why
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you choose to retire if you're choosing
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to retire early because you have a
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health issue obviously you know I think
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that's probably a wise decision if you
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can afford to retire right because you
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have less time to enjoy your retirement
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but obviously that's going to impact U
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how you spend your time in retirement
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but I think why you retire and
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unfortunately over 40% report that they
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did not choose when to retire they
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either got laid off from their job they
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had a health issue maybe they had a a
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adult child a younger child or an aging
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parent that they had to take take care
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of but you know losing your job quitting
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your job can be stressful unless you're
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prepared for it and it's something that
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you wanted to do so I think part of it
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is it depends on why you retired and it
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also depends on what you do in
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retirement if you use retirement as a
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chance to to take full advantage of the
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Youth of your senior years and to do
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these things that you've held off for
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years to do I think it's going to be a
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great thing and and I've been a
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financial adviser for over two decades
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now and that's what I've seen the vast
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majority of people are excited that they
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chose to retire early and the secret is
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is finding new purpose in retirement and
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that can be scary right that there's
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there's two challenges to being able to
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retire one is the financial Challenge
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and that's not easy uh that's a tough
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challenge but the other one is the
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mental challenge getting ready finding
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your new
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purpose so that so that you're excited
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to get up in the morning so that life
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continues to be an adventure so it's an
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enormously uh important decision and
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it's important how how you transition
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into retirement and that's why I made
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this video here that talks about what's
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the right time to retire and maybe you
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want to think about retiring early
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retiring at 65 why that might be a big
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mistake thanks for watching this video
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and I'll see you in that one
