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 journalArticlepeer-review

3 Citations (Scopus)


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 languageEnglish
Pages (from-to)576-584
Number of pages9
JournalEconomic Record
Issue number283
Publication statusPublished - Dec 2012
Externally publishedYes


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