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Early retirement through back problems creates financial trouble

Early retirement through back problems creates financial trouble
1st February 2012

People who are forced to retire early because of back problems could be placed at a long-term financial disadvantage, according to a new study.

Employees are more likely to leave the workforce early because of back problems than any other condition, but by doing so they are reducing their financial capacity and their ability to accumulate wealth for their retirement, researchers at the University of Sydney claim.

Lead investigator Professor Deborah Schofield explained: "There are more than twice as many people who have retired early due to back problems who are estimated to have no savings by the time they reach the traditional retirement age of 65."

The study also found that those who reported having back pain but continued to work full time still had less wealth in older age than those who had no chronic health conditions.

Researchers based their findings on a microsimulation model to measure the economic impact of ill health on workers.

The study coincides with research claiming that nearly one in five Britons are expected to retire in debt this year.

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