Does early access to pension wealth improve health?

• Main Authors: KIM, Seonghoon, KOH, Kanghyock
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: health; early access to pension wealth; regression discontinuity design; Asian Studies; Behavioral Economics; Finance; Health Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2437; https://ink.library.smu.edu.sg/context/soe_research/article/3436/viewcontent/Early_Access_Pension_Wealth_sv.pdf
• Institution: Singapore Management University

We examine the health impacts of early access to public pension wealth by exploiting a unique policy in Singapore allowing individuals to withdraw a proportion of their pension savings after their 55th birthday. For the identification, we employ a regression discontinuity design by comparing individuals before and after their 55th birthday. To address anticipated and lagged health impacts, we adopt the donut regression discontinuity approach. Using nationally representative monthly panel data, we find that early access to pension wealth improves self‐reported overall health.