Three essays exploring the migration of retirees and the associations between residential location and retiree well-being

This dissertation consists of three essays examining retiree migration and how residential location is associated with retiree well-being. Currently, there is very little financial-planning research that examines topics that are related to retiree migration and retirement migration planning. However, these topics warrant research attention. As the number of individuals transitioning into retirement continues to rise, financial planners will increasingly need to consider their clients’ post-employment residential goals. The first essay explores the association between retiree migration and retirement satisfaction. The hypothesis is that retirement satisfaction often is dependent on retirement experiences, and retirees who align their residential locations with locations that can facilitate these experiences will have a more satisfactory retirement. To test the hypothesis, a fixed-effects logistic regression model is estimated, where retirees’ level of satisfaction is the dependent variable and the key explanatory variable is an indicator variable for whether the retiree migrated. The results suggest that migration in retirement is associated with being satisfied with retirement. Thus, retirees that migrate to a residential location that aligns with their life interests, residential preferences, or that is near their family and friends may help in promoting an enjoyable retirement. The key implication is that financial planners should consider, as a part of their systemic retirement planning process, increasing the attention that is given to the residential location in which their clients will reside during retirement. The second essay examines the catalysts that prompt retirees to migrate. Consumer theory suggests that individuals select a residential location that maximizes their utility, subject to constraints. Fully retired individuals are relieved from employment constraints, whereas employed individuals are usually required to live within a commutable distance to their employers. The relief of employment constraints means that retirees’ decisions to migrate are driven by variables other than employment. This paper examines a collection of theoretically relevant variables that may help explain the drivers of retiree migration. The findings from the multivariate analysis suggests that residential location, net worth, age, education, and marital status are associated with retirees’ migration decisions. There may exist incomplete information about retirees’ cultural, climate, social, and economic environments that may lead to adverse health outcomes. The third and final essay uses panel data from the Health and Retirement Study (HRS) to examine the associations between retirees’ residential location and whether they have diabetes, lung disease, cancer, arthritis, and heart disease. After controlling for Body Mass Index (BMI), smoking behavior, alcohol consumption, and other relevant factors, this paper finds associations between retirees’ residential location and their health.