Governance of ageing and functional health: the impact of retirement policies on grip strength in Europe

Purpose – This paper aims to investigate how retirement and its duration affect functional health, using grip strength as an early biomarker of ageing. It examines the implications of pension policy and cultural context for physical functioning among older adults in Europe. 

Design/methodology/approach – We analyse panel data from the Survey of Health, Ageing and Retirement in Europe, covering 2004–2019. A fixed effects instrumental variable (FE–IV) approach is employed, using eligibility for state pension age as an exogenous instrument to address endogeneity in retirement status.

Findings – Retirement improves grip strength, particularly among older women and in individualistic welfare regimes. However, extended time in retirement leads to functional decline, especially among men and in collectivist societies. These patterns suggest both health-promoting and health-risk phases within retirement, shaped by policy and cultural environments. 

Originality/value – By linking pension eligibility rules with functional health outcomes across countries, this study provides governance-relevant evidence for designing retirement systems that support healthy ageing. Findings highlight the need for integrating physical resilience programs within retirement policy, tailored to national contexts and cultural norms, to reduce long-term health risks and promote equity in ageing.