A new study released by the Center For Retirement Research at Boston College entitled, “Older Americans On The Go: Financial and Psychological Effects of Moving” examines the differences between two types of retirees: the Planners and the Reactors. The study focuses on financial and psychological outcomes between the two types based upon various changes that occur during their retirement. Factors affecting change include newly widowed, nursing homes, newly divorced and health shocks. The study finds that In terms of financial outcomes, movers who experience negative shocks are more likely to reduce their housing equity, which indicates that households may use their equity as a precautionary asset. Regarding psychological outcomes, as expected, households with shocks tend to have more negative changes in psychological well-being than those without shocks.
For the full report, click “Older Americans On The Go: Financial and Psychological Effects of Moving”