Thinking about trading in the office for retirement? We've got good news.
Thinking about trading in the office for retirement? Good news. Taking early retirement won’t have an impact on when you die.
Some studies have suggested that early retirement leads to a loss of social networks and reduced mental and physical activity, which can impact health and longevity.
A groundbreaking study by the Australian School of Business, however, has debunked these myths.
Unfortunately, the idea that early retirement will lead to a later age of death due to reduced stress and greater enjoyment of life has also been quashed, with the study determining that no matter your retirement age, the length of your life will not be affected.
With a recent study by Deloitte finding that many Australian workers planning on retiring in the next 20 years would be forced to defer retirement due to a lack of super funds, the findings will come as a releif to many.
John Piggott, professor of economics at the Australian School of Business, says health is the primary determining factor in when we die, not retirement age.
“Health influences both the timing of retirement and when we die which has sometimes caused confusion in earlier studies,” he says.
The study involved accessing population data from the Norwegian government from 1990 to 2010.
During the 1990s, a significant number of companies in Norway reduced the pensions age from 67 to 62, causing employees in these companies to retire earlier than Norwegians working in other companies.
When comparing the longevity of individuals that retired early, with those who worked through to 67, the researchers could find no discernible difference.
“As Australia’s population continues to live longer, the amount of time spent in the post-work period is extending and this has significant cost implications for both individuals and governments,” says Piggott.
“In the future, if policymakers consider increasing the age of retirement as a way to cope with this rising fiscal burden, our study shows they need not worry about any adverse effect on the mortality rate of the population.”
Researchers did, however, give a word of caution for people that were forced out of work due to company closures and downsizes.
“When a person’s choice to leave work is removed, this does seem to impact mortality, probably because of a variety of factors such as depression and loss of social networks.”
Piggott says that while the dataset is Norwegian, the findings are equally relevant for Australia and other developed countries. The quality of the dataset, and its unique nature, have allowed for one of the most comprehensive studies on the topic to date.
Do you have plans for your retirement? Share your thoughts below.
Related:
