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Does Retirement Improve Cognitive Functioning? Causal Evidence From Vietnam
Duc Dung Le1, Long Thanh Giang2
1Waseda Institute for Advanced Study, Waseda University, Tokyo, Japan.
Summary
Retirement enhances cognitive functioning in Vietnam, particularly in rural areas. Activities like self-care and social engagement may explain this cognitive benefit in older adults.
Area of Science:
- Gerontology
- Cognitive Neuroscience
- Public Health
Background:
- Research on retirement's impact on cognition is limited, especially in middle-income countries.
- Previous studies in developed nations yield inconclusive results regarding retirement and cognitive function.
- Understanding this relationship in diverse economic contexts like Vietnam is crucial for global aging populations.
Purpose of the Study:
- To investigate the causal effect of retirement on cognitive functioning in Vietnam.
- To contribute evidence from a middle-income country to the existing, limited body of research.
- To explore potential mechanisms linking retirement to cognitive changes.
Main Methods:
- Analysis of a national survey data from 2,123 older persons in Vietnam.
- Utilized official retirement ages as an instrumental variable to address endogeneity of retirement decisions.
- Employed econometric techniques to establish a causal link between retirement and cognitive outcomes.
Main Results:
- Retirement was found to significantly improve cognitive functioning.
- The positive effect of retirement on cognition was more pronounced in rural populations.
- Mechanisms include increased engagement in self-care, social activities, media consumption, and sexual activity.
Conclusions:
- Retirement positively impacts cognitive function in the Vietnamese older population.
- Promoting active aging, family solidarity, and community cohesion can support cognitive health in old age.
- Interventions should focus on facilitating engaging activities for retirees to maintain cognitive vitality.
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