The impact of illness on retirement finances

Simon J. Kelly; Richard Percival; Deborah J. Schofield; Rupendra N. Shrestha; Emily J. Callander; Megan E. Passey

doi:10.1111/j.1475-4932.2012.00845.x

The impact of illness on retirement finances

Simon J. Kelly, Richard Percival, Deborah J. Schofield^*, Rupendra N. Shrestha, Emily J. Callander, Megan E. Passey

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

Early retirement due to illness reduces financial capacity over the long term. Using a microsimulation model called Health&WealthMOD, it was found that for Australians aged 45-64, those out of the labour force due to ill health would accumulate a significantly lower amount of savings by age 65 than what they could have accumulated if they had no chronic condition and remained in the labour force. They will also have access to an annuity, which provides as little as $40 per year. This is a concern as self-reliance is seen to be a key strategy of government to offset the financial burden of ageing populations and to raise living standards of older persons.

Original language	English
Pages (from-to)	576-584
Number of pages	9
Journal	Economic Record
Volume	88
Issue number	283
DOIs	https://doi.org/10.1111/j.1475-4932.2012.00845.x
Publication status	Published - Dec 2012
Externally published	Yes

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title = "The impact of illness on retirement finances",

abstract = "Early retirement due to illness reduces financial capacity over the long term. Using a microsimulation model called Health&WealthMOD, it was found that for Australians aged 45-64, those out of the labour force due to ill health would accumulate a significantly lower amount of savings by age 65 than what they could have accumulated if they had no chronic condition and remained in the labour force. They will also have access to an annuity, which provides as little as $40 per year. This is a concern as self-reliance is seen to be a key strategy of government to offset the financial burden of ageing populations and to raise living standards of older persons.",

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AU - Passey, Megan E.

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AB - Early retirement due to illness reduces financial capacity over the long term. Using a microsimulation model called Health&WealthMOD, it was found that for Australians aged 45-64, those out of the labour force due to ill health would accumulate a significantly lower amount of savings by age 65 than what they could have accumulated if they had no chronic condition and remained in the labour force. They will also have access to an annuity, which provides as little as $40 per year. This is a concern as self-reliance is seen to be a key strategy of government to offset the financial burden of ageing populations and to raise living standards of older persons.

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The impact of illness on retirement finances

Abstract

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