Health and retirement age: Comparison of expectations and actual retirement

Abstract

Aim: We examine the relationship between the subjective assessment of health status and retirement by using information on expected and actual retirement ages. Methods: Subjective data from cross-sectional surveys, conducted in Finland in 2003 and 2008, are linked to information on actual retirement age from register data from 2003 to 2013. Regression models are estimated for actual and expected retirement ages. Results: While the health status is positively correlated with both actual and anticipated full-time retirement age, the actual age of retirement is less sensitive to health. On average, individuals tend to retire later than they had anticipated. We examine potential biases in the health-retirement relationship. Measurement error in regard to health status biases the results downwards. Using data on observed retirement ages, omitting those who do not retire during the data period, leads to a selection problem. Ignoring the selection also leads to a downwards bias in the health-retirement age connection. As a more exogenous health variable we use health shocks, which are measured by average annual days of absence due to sickness in the follow-up period. These shocks are negatively related to retirement age in a subsample of initially healthy individuals. Conclusions: When subjective assessment of health is used for explaining retirement behavior, the effects of health can often be underestimated rather than overestimated. To lengthen working careers, attention should be given to both the ability (health) and willingness (perceptions of proper retirement age) of people to continue longer at work.

Qualidade de vida de idosos e sua relação com o trabalho

“…The fact that many elderly people are compelled to work due to financial difficulties does not mean that work causes suffering to these individuals. On the contrary, many people feel happy and have positive experiences associated with work, which may lead to greater personal and professional satisfaction, and hence, higher QoL (9) .…”

“…The non-working elderly had the lowest mean score in the Autonomy facet, since they depend on the retirement pension and/or in support from their families to cover their daily expenses, which reduces their financial independence, and compromises their ability to decide on various aspects related to their daily life, hence resulting in impairment of their QoL (8)(9) .…”

“…International studies emphasize the association between work and good health conditions in older people, since retirement is often related to declines in physical, psychological and cognitive capacity, as well as impairment in autonomy, independence, social support and interpersonal relationships (8)(9) . Therefore, the present study can have a positive impact on the QoL of older people, favoring the prevention of diseases and injuries and promoting the adoption of self-care practices (8) .…”

Higher Retirement Age? Trend And Growth Analysis Of Labour Market In Malaysia

“…Surprisingly, the lower Gross Domestic Product (GDP) per capita countries such as Thailand and Vietnam have a higher life expectancy as compared to Malaysia. The correlation between retirement age and health status jives with Ilmakunnas and Ilmakunnas (2018) regression analysis which concluded that the health status is positively correlated with both actual and anticipated full-time retirement age. 2010 to 2017, the number of tertiary graduates entering the job market has surpassed the number of jobs created for them.…”

Pieces in a big puzzle: On the relationship between health and employment

“…However, the role of health in retirement decisions often receives little attention. Ilmakunnas and Ilmakunnas [22] show in their article Health and retirement age: Comparison of expectations and actual retirement published in this special issue that the relationship between health and retirement decisions is complex. Overall, individuals tend to retire later than they have anticipated.…”