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:5/28/2016)... ... , ... SuperCloset is proud to officially launch our “Helping Veterans Grow ... and obstacles veterans’ need to overcome in order to face their life changes upon ... veteran(s) with a donated SuperCloset product based on the needs and ability of helping ...
(Date:5/28/2016)... AL (PRWEB) , ... May 28, 2016 , ... May ... US Open Martial Arts Fighting Challenge with theme event of “K Warriors” on June ... Mobile, AL 36608. , The event is sponsored and hosted by Shaolin Institute ...
(Date:5/28/2016)... ... ... a part of the city where’s it’s easy to spot the neon lights of chains ... to attract diners with a taste for real food. , On May 13, the ... Grill, an urban casual restaurant focusing on dishes made by hand with wholesome, organic ingredients ...
(Date:5/27/2016)... SC (PRWEB) , ... May 27, 2016 , ... ... a line of classic American timber frame barn kits, which can be found on ... are inspired by historic American barn plans, and they highlight the craftsmanship of timber ...
(Date:5/27/2016)... ... May 27, 2016 , ... W.S. Badger Co. Inc ., ... it has been recognized as one of the best small businesses for new dads ... one of nine small businesses providing progressive benefits to new parents on the organization’s ...
Breaking Medicine News(10 mins):
(Date:5/25/2016)... NEW YORK , May 25, 2016 ... Device Market Size, Share, Development, Growth and Demand Forecast ... Insulin Syringe, Insulin Pump and Others)" published by P&S ... valued at $9,998.3 million in 2015, and it is ... 2016-2022. Based on type, the insulin pump segment is ...
(Date:5/25/2016)... -- MedDay, a biotechnology company focused on the ... entitled "High doses of biotin in progressive multiple sclerosis: extension ... Professor Ayman Tourbah , Principal Investigator of the Phase ... of Neurology (EAN) in Copenhagen, Denmark . ... place on Sunday, 29 May 2016 from 14:45 to 16:15 ...
(Date:5/24/2016)... May 24, 2016 Cirujanos holandeses ... ayudar a los médicos a compartir sus mejores prácticas ... escala mundial. Profesionales médicos de Europa, África, ... apuntado a la aplicación, que combina la transmisión en ... totalmente seguro. Educación   "Imagine un ...
Breaking Medicine Technology: