Transition to grandparenthood and early retirement in midlife

This paper aims to capture the interrelationship between two life transitions linking the generation of elderly parents and their adult children: early retirement and the transition to (grand)parenthood. A (grand)parents' early retirement might be driven by the need to care for a grandchild. Conversely, the transition of their adult children into parenthood might be shaped by the availability of flexible, reliable, and affordable childcare provided by retired (grand)parents. Employing an event history approach, we examine the reciprocal influence that the birth of the first grandchild and early retirement have in midlife. Our study focuses on gender and socio-economic differences drawing on the SHARE multi-country dataset. Results show that becoming a grandparent increases the chances of early retirement for both men and women, slightly more among grandmothers than grandfathers. Among new grandfathers, those with higher education are more likely to go into early retirement compared to their less-educated counterparts. Early retirement, on the contrary, does not predict grandparenthood in a significant way, though there is a relatively higher chance of becoming a grandfather if the person who retired is highly educated.