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:2/22/2017)... (PRWEB) , ... February 22, 2017 , ... The SeniorCare ... the 2017 Forecast —on Thursday, February 23, 2017, at 1:00 PM ET. A recording ... is part of the Interactive Webinar Series. , If you want to find out ...
(Date:2/22/2017)... Marlton, NJ (PRWEB) , ... February 22, 2017 ... ... has served military veterans who suffer from combat-related PTSD. , Established in 1977, ... During the Vietnam-era, the challenges of military returning to civilian life were evident ...
(Date:2/22/2017)... ... February 22, 2017 , ... ... itself - the Vector™ Series Multi-Cook Oven offers up to four ovens in ... exclusive Structured Air Technology™ for unmatched evenness in cooking. Alto-Shaam has partnered with ...
(Date:2/21/2017)... ... February 21, 2017 , ... Robins ... Clinic in Durant, Oklahoma, on Feb. 21. , The celebration began with a ... members, clinic employees, the construction team and tribal leadership. , Choctaw Nation ...
(Date:2/21/2017)... ... ... As recently as 2015, rhinoplasty was one of the Top 5 cosmetic ... patients want to make a change in the appearance of their nose while others ... team at usrhinoplasty.org is expanding its article database to better inform its ...
Breaking Medicine News(10 mins):
(Date:2/22/2017)... SEATTLE , Feb. 22, 2017 ... translational development of novel immune modulating therapies, today ... the a9a10 nicotinic acetylcholine receptor (nAChR), demonstrates robust ... preclinical pain models. The study also establishes the ... the treatment of chronic pain. The findings were ...
(Date:2/22/2017)... , Feb. 22, 2017  Soligenix, Inc. ... Company), a late-stage biopharmaceutical company focused on developing ... there is an unmet medical need, announced today ... been granted a European patent for the treatment ... and methods of treatment of skin conditions, complements ...
(Date:2/21/2017)... -- IBM (NYSE: IBM ) Research has today announced new ... the eye,s retina. The Melbourne based ... recognize abnormalities in retina images, which could in the future ... of patients who may be at risk of eye diseases ... the developed world. The research began in ...
Breaking Medicine Technology: