Navigation Links
People who retire early due to back problems face long-term financial disadvantage
Date:1/31/2012

Philadelphia, PA, January 31, 2011 Back problems are a highly prevalent health issue, and people with the condition have a significantly greater chance of retiring early from the workforce, much more so than for any other health condition. A group of Australian researchers reports that not only does early retirement limit the immediate income available to these individuals, but it also reduces their long-term financial capacity, by reducing their ability to accumulate wealth to a significant degree. Their study is published in the January issue of Pain.

"Relative to those who retired early due to other health problems, there are more than twice as many people who have retired early due to back problems who are estimated to have no savings by the time they reach the traditional retirement age of 65," according to lead investigator Professor Deborah Schofield, PhD, Chair of Health Economics at the NHMRC Clinical Trials Centre and Sydney School of Public Health, University of Sydney, Australia. "For most of the age and sex groups analyzed, even those who reported back pain and were working full time accumulated less wealth than full-time workers who suffered no chronic health conditions."

Researchers based their study on "Health&WealthMOD," a microsimulation model designed to measure the economic impacts of ill health on Australian workers aged 45-64 years. The model uses data from the nationally representative 2003 Survey of Disability, Ageing and Careers (2003 SDAC). The authors estimated the value of retirement wealth that would be available to individuals at retirement age, and assumed that respondents converted their private retirement accounts, cash, shares, and investment properties into cash and invested it in an income stream, such as an annuity. This income stream, plus any government pension benefit, provided a basis for comparing different living standards in retirement.

The 2003 SDAC data included 147 individuals between 45-64 years who were out of the labor force due to back problems, 168 respondents who were employed part time and had back problems, and 356 who were employed full time and had back problems.

By age 65, almost all the individuals who were employed full time with no health condition will have accumulated some wealth, but only 75% to 85% of those who are out of the labor force due to their back condition will have done so. Men aged 45-54 years who retired early due to back problems are expected to have a median value of wealth, by the time they are 65, of only $5,038, which generates an annuity of only $291 per annum (all dollar values are in 2009 Australian dollars). This amount is far lower than the expected median value of wealth for men in the same age group who remained in the labor force full time, with $339,121 of wealth at retirement age, and an estimated annuity value of $19,592. Women aged 45-54 years who retired early due to back problems are expected to have a median wealth value at age 65 of only $20,064, whereas their counterparts who remained in the workforce full time will have $237,496 of wealth. The corresponding annuity values for these two groups were $1,015 and $12,014, respectively.

"Preventing early retirement due to back problems will increase the time individuals have to amass wealth assets to finance their retirement," says Professor Schofield. "Adopting cost-effective approaches to prevention and treatment of back problems may contribute to extending the labor force participation of individuals and help prevent the costs of lower wealth assets associated with early retirement due to back problems."


'/>"/>

Contact: Christine Rullo
painmedia@elsevier.com
215-239-3709
Elsevier Health Sciences
Source:Eurekalert

Related medicine news :

1. Statins May Stave Off Liver Cancer in People With Hepatitis B
2. People May Lie More When Texting: Study
3. UNH research: US hospitality industry often reluctant to hire people with disabilities
4. Queens study shows the rights of people with disabilities are not being promoted
5. Inner Dialogue Might Aid People With Autism
6. Lifestyle counseling reduces time to reach treatment goals for people with diabetes
7. Many people continue to smoke after being diagnosed with cancer
8. Nicotine replacement therapies may not be effective in helping people quit smoking
9. Why Some People Live to 110
10. Like Babies, Dogs Pick Up on Peoples Intent
11. Music May Help Ease Pain for Anxious People
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/23/2017)... ... March 23, 2017 , ... “My Journey Through Heaven”: the true-life account of ... profound faith of God’s promise of Heaven for His people. “My Journey Through Heaven” ... with his wife, three children and six grandchildren living and doing for God as ...
(Date:3/23/2017)... ... March 23, 2017 , ... “A ... God. “A Respectful Response To Atheist Manifesto” is the creation of published author ... wife, Nancy, for sixty years. He holds graduate degrees from Kent State University ...
(Date:3/23/2017)... ... March 23, 2017 , ... “More Corruption”: a simple and strong explanation of the ... of the rulers of Heaven was asked by God to write a book about Him. ... me just because I kept my commitment to the Lord God. They have not walked ...
(Date:3/22/2017)... ... ... Death anxiety is unconscious and needs understanding and non-judgmental support in a loving ... book titled “ As Good as Goodbyes Get ” (published by Balboa Press AU), ... experiencing at the bedside of patients who were dying. The book centers about questions ...
(Date:3/22/2017)... ... March 23, 2017 , ... ... solutions for drugs, biologics and consumer health products, today announced that it had ... currently taking place at the Suntec Singapore International Exhibition & Convention Centre, Singapore. ...
Breaking Medicine News(10 mins):
(Date:3/23/2017)... YORK , March 23, 2017 ... sample preparation market is expected to reach USD 7.2 billion ... of 7.1%. Sample preparation is a procedure in which a ... crucial step in most analytical procedures since the methods are ... preparation is one of the most shared procedures in the ...
(Date:3/23/2017)... Denmark , March 23, 2017 Ascendis ... its innovative TransCon technology to address significant unmet medical ... will host a conference call and webcast on Monday, ... the Endocrine Society in Orlando, Florida ... disease pipeline candidates (TransCon Growth Hormone, TransCon PTH and ...
(Date:3/23/2017)... , March 23, 2017  Cornerstone Pharmaceuticals, ... a major milestone today.  Following successful End-of-Phase ... U.S. Food and Drug Administration (FDA), the ... and regulatory path forward to conduct pivotal ... patients with acute myeloid leukemia (AML) and ...
Breaking Medicine Technology: