Finance Choices
Work longer, live longer
Contrary to popular opinion, early retirement does not mean a longer life.
Research for the British Medical Journal has shown that people who retire at 55 are nearly twice as likely to die in the first ten years after they finish work as those who work on to 65.
"The long-term survival of people who retire early at ages 55 or 60 is no better than those who retire at 65, especially those who retire at 55," said Dr Shan Tsai, who led the study.
"On the contrary, it improved with increasing age at retirement for people from both high and low socioeconomic groups, defined according to employment grade."
The greater number of deaths among those that retire early may be partly the result of people forced to retire through ill heath, the researchers note. Additionally, men are more likely to die younger than women, and those earning more are more likely to live longer.
But even when all these factors are discounted, there are still differences in life expectancy between those retiring at 55, 60, and 65.
This report comes amid increasing pressure to increase the state retirement age to ease the UK's pension crisis as life expectancy grows.
In the last four years people have become 30 per cent less likely to die in their 60s, adding three years to life expectancy.
The Actuarial Profession, which carried out this research, looked into data from 1999 to 2002 - examining how likely someone was to die at any given age.
It is estimated that as things stood pensioners were set to be 30 per cent poorer in retirement than currently - and that workers would need to save £57 billion a year more to bring UK pensions in line with the European average.
But with news that life expectancy is increasing for those reaching retirement age, savings will need to increase even faster.
"For pensioners, improved mortality rates mean spending longer in retirement and the latest tables show why many commentators have been calling for retirement ages to increase," the Actuarial Profession said.
Last month two major reports called for an increase to the retirement age to help stave off poverty in retirement. The National Association of Pension Funds suggested a steady increase in retirement age to 69 (full story) and the Institute of Directors said the state pension age should be raised to 70.
Research for the British Medical Journal has shown that people who retire at 55 are nearly twice as likely to die in the first ten years after they finish work as those who work on to 65.
"The long-term survival of people who retire early at ages 55 or 60 is no better than those who retire at 65, especially those who retire at 55," said Dr Shan Tsai, who led the study.
"On the contrary, it improved with increasing age at retirement for people from both high and low socioeconomic groups, defined according to employment grade."
The greater number of deaths among those that retire early may be partly the result of people forced to retire through ill heath, the researchers note. Additionally, men are more likely to die younger than women, and those earning more are more likely to live longer.
But even when all these factors are discounted, there are still differences in life expectancy between those retiring at 55, 60, and 65.
This report comes amid increasing pressure to increase the state retirement age to ease the UK's pension crisis as life expectancy grows.
In the last four years people have become 30 per cent less likely to die in their 60s, adding three years to life expectancy.
The Actuarial Profession, which carried out this research, looked into data from 1999 to 2002 - examining how likely someone was to die at any given age.
It is estimated that as things stood pensioners were set to be 30 per cent poorer in retirement than currently - and that workers would need to save £57 billion a year more to bring UK pensions in line with the European average.
But with news that life expectancy is increasing for those reaching retirement age, savings will need to increase even faster.
"For pensioners, improved mortality rates mean spending longer in retirement and the latest tables show why many commentators have been calling for retirement ages to increase," the Actuarial Profession said.
Last month two major reports called for an increase to the retirement age to help stave off poverty in retirement. The National Association of Pension Funds suggested a steady increase in retirement age to 69 (full story) and the Institute of Directors said the state pension age should be raised to 70.
posted by Bruce Wayne at 7:21 AM
Work longer, live longer
3 Comments:
I think work gives alot of people purpose, which keeps them alive. I know that seems illogical, but it amazes me how many people stay alive to see important milestones for other family members (a birth, wedding, etc.) and die shortly thereafter. Also, it amazes me how many people die shortly (within 6 months) of their spouse. I guess when you're ready, you're ready!
If you retire early, perhaps you can accomplish more in your younger days and not feel the need to stick around...
I enjoy my data entry job, while I finish college off. I think it's wonderful, I work with a colorful collage of people (3rd shift). The pay isn't horrible, there is little to no responsiblity. Also, considering I've been working on computers since I was twelve, I'm a very fast typer. So all I get is praise. However, in reply to your article, I have never linked long life with retirement other than thinking I'd be happier the earlier in my life I could retire.
What I have noticed is that many people, especially men, base their worth on the fact that they work. When they lose the sense of self-esteem from bringing in an income, they slide downhill.
Also, someone who is depressed may miss the control of being in a work environment and not keep themselves active after retiring.
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