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Early retirement and the financial assets of individuals with back problems

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Abstract

This paper quantifies the relationship between early retirement due to back problems and wealth, and contributes to a more complete picture of the full costs associated with back problems. The output data set of the microsimulation model Health&WealthMOD was analysed. Health&WealthMOD was specifically designed to measure the economic impacts of ill health on Australian workers aged 45–64 years. People aged 45–64 years who are out of the labour force due to back problems have significantly less chance of having any accumulated wealth. While almost all individuals who are in full-time employment with no chronic health condition have some wealth accumulated, a significantly smaller proportion (89%) of those who have retired early due to back problems do. Of those who have retired early due to back problems who do have some wealth, on average the total value of this wealth is 87% less (95% CI: −90 to −84%) than the total value of wealth accumulated by those who have remained in full-time employment with no health condition controlling for age, sex and education. The financial burden placed on those retiring early due to back problems is likely to cause financial stress in the future, as not only have retired individuals lost an income stream from paid employment, but they also have little or no wealth to draw upon. Preventing early retirement due to back problems will increase the time individuals will have to amass savings to finance their retirement and to protect against financial shocks.

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Notes

  1. The conditions had lasted, or were likely to last, for six months or longer 23. Australian Bureau of Statistics, Information Paper—Disability, Ageing and Carers, Australia: User Guide ABS 4431.0.55.001. 2003, ABS: Canberra.

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Acknowledgments

The development of the microsimulation model used in this research, Health&WealthMOD, is funded by the Australian Research Council (under grant LP07749193), and Pfizer Australia is a partner to the grant. The authors have no conflicting interests and are independent of the funding sources.

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Authors and Affiliations

  1. NHMRC Clinical Trials Centre and Sydney School of Public Health, University of Sydney, Parramatta Rd, Camperdown, NSW, 1450, Australia

    Deborah J. Schofield, Rupendra N. Shrestha & Emily J. Callander

  2. National Centre for Social and Economic Modelling (NATSEM), University of Canberra, University Drive, Canberra, ACT, Australia

    Richard Percival & Simon J. Kelly

  3. Northern Rivers University Department of Rural Health, Sydney School of Public Health, University of Sydney, Uralba Street, Lismore, NSW, 2480, Australia

    Megan E. Passey

Authors
  1. Deborah J. Schofield
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  2. Rupendra N. Shrestha
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  3. Richard Percival
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  4. Emily J. Callander
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  5. Simon J. Kelly
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  6. Megan E. Passey
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Correspondence to Deborah J. Schofield.

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Schofield, D.J., Shrestha, R.N., Percival, R. et al. Early retirement and the financial assets of individuals with back problems. Eur Spine J 20, 731–736 (2011). https://doi.org/10.1007/s00586-010-1647-8

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  • DOI: https://doi.org/10.1007/s00586-010-1647-8

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