Wellington, May 16 NZPA - It's official -- working makes you happy, according to new research which shows that people over 65 who are still working feel better than those who have retired. The finding comes out of initial results from the Health, Work and Retirement Longitudinal Study, carried out by Massey University's school of Psychology.

The study collates information gathered from 6662 people aged between 55 and 70 about their transition from work to retirement, and how it affects their health.

Dr Fiona Alpass said data from the first questionnaire indicated those still employed past the age of 65 rated their own mental health higher than those who had stopped working."But we don't know yet whether retirement leads to poor mental health or whether poor mental health leads to an early retirement. I suspect it is a combination of both, but the data from upcoming questionnaires is needed to confirm that," she told Massey News.

Unease about finances once retired was also a concern, she said. Almost half the working respondents thought their living standards would decline in retirement, but a large percentage thought they would stay the same.

Dr Alpass said despite the study's participants expressing concerns about retirement, a significant number of those still employed had done little by way of retirement planning."Planning has mainly consisted of discussing retirement with their spouse or partner," she said.

The research team will carry out two-yearly questionnaires and track changes in the group's work and retirement situation.

"It will be interesting to see how their views change over the next few years."