The impact of back problems on retirement wealth

Deborah Schofield, Simon Kelly, Rupendra Shrestha, Emily Callander, Megan Passey, Richard Percival

    Research output: Contribution to journalArticle

    18 Citations (Scopus)

    Abstract

    This study undertook an economic analysis of the costs of early retirement due to back problems, with the aim of quantifying how much lower the value of accumulated wealth of individuals who exit the workforce early due to back problems is by the time they reach the traditional retirement age of 65 years - compared to those who remained in the workforce. This was done using the output dataset of the microsimulation model Health&WealthMOD. It was found that over 99% of individuals who are employed full time will have accumulated some wealth at age 65 years, whereas as little as 74% of those who are out of the labour force due to back problems will have done so. Those who retire from the labour force early due to back problems will have a median value of total accumulated wealth by the time they are 65 of as little as $3708 (for women aged 55-64 years). This is far lower than the median value of accumulated wealth for those women aged 55-64 years who remained in the labour force full time, who will have $214,432 of accumulated wealth at age 65 years. Not only will early retirement due to back problems limit the immediate income available to individuals, but it will also reduce their long-term financial capacity by reducing their wealth accumulation. Maintaining the labour force participation of those with back problems, or preventing the onset of the disease, should be a priority in order to maintain living standards comparable with others who do not suffer from this condition
    Original languageEnglish
    Pages (from-to)203-210
    Number of pages8
    JournalPain
    Volume153
    Issue number1
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    Retirement
    Economics
    Costs and Cost Analysis
    Health

    Cite this

    Schofield, D., Kelly, S., Shrestha, R., Callander, E., Passey, M., & Percival, R. (2012). The impact of back problems on retirement wealth. Pain, 153(1), 203-210. https://doi.org/10.1016/J.PAIN.2011.10.018
    Schofield, Deborah ; Kelly, Simon ; Shrestha, Rupendra ; Callander, Emily ; Passey, Megan ; Percival, Richard. / The impact of back problems on retirement wealth. In: Pain. 2012 ; Vol. 153, No. 1. pp. 203-210.
    @article{a4982ae3629340ea90a97f3b291c1ede,
    title = "The impact of back problems on retirement wealth",
    abstract = "This study undertook an economic analysis of the costs of early retirement due to back problems, with the aim of quantifying how much lower the value of accumulated wealth of individuals who exit the workforce early due to back problems is by the time they reach the traditional retirement age of 65 years - compared to those who remained in the workforce. This was done using the output dataset of the microsimulation model Health&WealthMOD. It was found that over 99{\%} of individuals who are employed full time will have accumulated some wealth at age 65 years, whereas as little as 74{\%} of those who are out of the labour force due to back problems will have done so. Those who retire from the labour force early due to back problems will have a median value of total accumulated wealth by the time they are 65 of as little as $3708 (for women aged 55-64 years). This is far lower than the median value of accumulated wealth for those women aged 55-64 years who remained in the labour force full time, who will have $214,432 of accumulated wealth at age 65 years. Not only will early retirement due to back problems limit the immediate income available to individuals, but it will also reduce their long-term financial capacity by reducing their wealth accumulation. Maintaining the labour force participation of those with back problems, or preventing the onset of the disease, should be a priority in order to maintain living standards comparable with others who do not suffer from this condition",
    author = "Deborah Schofield and Simon Kelly and Rupendra Shrestha and Emily Callander and Megan Passey and Richard Percival",
    year = "2012",
    doi = "10.1016/J.PAIN.2011.10.018",
    language = "English",
    volume = "153",
    pages = "203--210",
    journal = "Pain",
    issn = "0304-3959",
    publisher = "Elsevier",
    number = "1",

    }

    Schofield, D, Kelly, S, Shrestha, R, Callander, E, Passey, M & Percival, R 2012, 'The impact of back problems on retirement wealth', Pain, vol. 153, no. 1, pp. 203-210. https://doi.org/10.1016/J.PAIN.2011.10.018

    The impact of back problems on retirement wealth. / Schofield, Deborah; Kelly, Simon; Shrestha, Rupendra; Callander, Emily; Passey, Megan; Percival, Richard.

    In: Pain, Vol. 153, No. 1, 2012, p. 203-210.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - The impact of back problems on retirement wealth

    AU - Schofield, Deborah

    AU - Kelly, Simon

    AU - Shrestha, Rupendra

    AU - Callander, Emily

    AU - Passey, Megan

    AU - Percival, Richard

    PY - 2012

    Y1 - 2012

    N2 - This study undertook an economic analysis of the costs of early retirement due to back problems, with the aim of quantifying how much lower the value of accumulated wealth of individuals who exit the workforce early due to back problems is by the time they reach the traditional retirement age of 65 years - compared to those who remained in the workforce. This was done using the output dataset of the microsimulation model Health&WealthMOD. It was found that over 99% of individuals who are employed full time will have accumulated some wealth at age 65 years, whereas as little as 74% of those who are out of the labour force due to back problems will have done so. Those who retire from the labour force early due to back problems will have a median value of total accumulated wealth by the time they are 65 of as little as $3708 (for women aged 55-64 years). This is far lower than the median value of accumulated wealth for those women aged 55-64 years who remained in the labour force full time, who will have $214,432 of accumulated wealth at age 65 years. Not only will early retirement due to back problems limit the immediate income available to individuals, but it will also reduce their long-term financial capacity by reducing their wealth accumulation. Maintaining the labour force participation of those with back problems, or preventing the onset of the disease, should be a priority in order to maintain living standards comparable with others who do not suffer from this condition

    AB - This study undertook an economic analysis of the costs of early retirement due to back problems, with the aim of quantifying how much lower the value of accumulated wealth of individuals who exit the workforce early due to back problems is by the time they reach the traditional retirement age of 65 years - compared to those who remained in the workforce. This was done using the output dataset of the microsimulation model Health&WealthMOD. It was found that over 99% of individuals who are employed full time will have accumulated some wealth at age 65 years, whereas as little as 74% of those who are out of the labour force due to back problems will have done so. Those who retire from the labour force early due to back problems will have a median value of total accumulated wealth by the time they are 65 of as little as $3708 (for women aged 55-64 years). This is far lower than the median value of accumulated wealth for those women aged 55-64 years who remained in the labour force full time, who will have $214,432 of accumulated wealth at age 65 years. Not only will early retirement due to back problems limit the immediate income available to individuals, but it will also reduce their long-term financial capacity by reducing their wealth accumulation. Maintaining the labour force participation of those with back problems, or preventing the onset of the disease, should be a priority in order to maintain living standards comparable with others who do not suffer from this condition

    U2 - 10.1016/J.PAIN.2011.10.018

    DO - 10.1016/J.PAIN.2011.10.018

    M3 - Article

    VL - 153

    SP - 203

    EP - 210

    JO - Pain

    JF - Pain

    SN - 0304-3959

    IS - 1

    ER -

    Schofield D, Kelly S, Shrestha R, Callander E, Passey M, Percival R. The impact of back problems on retirement wealth. Pain. 2012;153(1):203-210. https://doi.org/10.1016/J.PAIN.2011.10.018