WI22-03: Family Proximity and Co-Residence in Retirement Heterogeneity in Residential Changes Across Older Adults’ Care Contexts

Abstract

Residential changes to live near or with family can facilitate caregiving for children and older adults, along with other supports, but family-based residential changes could also have implications for economic security in retirement, including if changes correspond with earlier receipt of retirement benefits through the Social Security Administration (SSA). This study examines: 1) How often do residential changes to live near or with family coincide with retirement? 2) How do caregiving responsibilities impact the risk of such a residential change? and 3) How do these associations correspond with early SSA claiming around retirement? Using the longitudinal data of the Health and Retirement Study (HRS) from 2000 to 2018, we follow 2,798 households pre- and post-retirement. Results show that the risk of a residential change that puts an older adult household in close proximity to their child is significantly higher at the onset of retirement, compared to pre-retirement years, while the risks of residential changes that result in co-residence with children are less tied to retirement. There is evidence that grandchild-caregiving responsibilities for the older adult increase the risk of these residential changes. Finally, we find little evidence that such changes are tied to earlier Social Security retirement benefits claiming when comparing those who make such changes around retirement to those who do not. Thus, although many older adults are making significant changes to their living arrangements as they manage family-care needs, they are not at disproportionate risk of claiming SSA retirement benefits early when doing so.