Retirement Effects on Cognitive Functioning: Exploring the Role of Gendered Employment Histories

Arnhold, T. (2026). Retirement Effects on Cognitive Functioning: Exploring the Role of Gendered Employment Histories. IIASA Working Paper. Laxenburg, Austria: WP-26-003

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Abstract

Cognitive functioning varies markedly among Europeans around retirement age. In light of this heterogeneity, studies on retirement effects on cognitive functioning produced inconsistent results. Drawing on the concept of cognitive reserve and gender differences in work careers and cognitive outcomes, this study addresses this ambiguity, analysing the role of gendered employment histories for retirement effects on cognition in Europe. This study uses panel data from the Survey of Health, Ageing and Retirement in Europe (SHARE; Waves 1-9; 2004-2022) to estimate the causal effect of retirement on episodic memory while accounting for heterogeneity by gender and employment histories (n=25,876; 13,823 men, 12,053 women). The study applies a novel two-step design: first, sequence analysis is used to construct gender-specific employment history clusters based on retrospective information on occupational complexity (more complex, less complex) and intensity (full-time, part-time) between ages 15 and 50. Second, fixed-effects two-stage least squares models are used to estimate causal retirement effects on episodic memory for men and women. Results unveil heterogeneous retirement effects. Among men, retirement reduces episodic memory for full-time lower complexity employment histories, while no significant effects are found for higher complexity full-time employment. Contrarily, male part-time trajectories exhibit positive retirement effects. Among women, retirement effects are positive only in the full-time, higher-complexity cluster. Retirement duration effects on episodic memory are negative for women across all clusters and for men with full-time careers. Overall, the findings highlight the importance of gender-specific context and past employment complexity for retirement effects, cautioning against uniform retirement schemes.

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