Retirement and cognitive development in the Netherlands: Are the retired really inactive?

This paper uses longitudinal data to analyze the relation between retirement and cognitive development in the Netherlands. Controlling for individual fixed effects and lagged cognition, we find that retirees face lower declines in their cognitive flexibility than those who remain employed, which appears to be persistent 6 years after retirement. However, the information processing speed of low-educated retirees declines faster. The magnitude of both changes in cognition is such that retirees appear 5-6 years younger in terms of cognitive flexibility, and older in terms of information processin... Mehr ...