Social engagement and retirement satisfaction: Evidence from Indonesia

Abstract

Little is known about the association between social engagement and retirement satisfaction in the developing world. This study examines the association between social engagement and retirement satisfaction in Indonesia, a developing country. The data come from the Indonesia Family Life Survey (IFLS fifth wave) which took place in late 2014 and early 2015. After narrowing the survey so that it would pertain exclusively to retired individuals, a sample of 1,316 Indonesian retirees was yielde. Logistic regression was performed to estimate this relationship after controls were established around a set of confounding variables. The main findings show that social engagement increases the odds of being satisfied with retirement. Specifically, an increase of one unit of social engagement is associated with an increase in the odds of being satisfied with retirement by 21%. The study suggests that policies and programs that can stimulate retired individuals to actively participate in social life in their environments should be developed and prioritized.