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Health Important Factor in Retirement Plans

Tue, 10/24/2000 - 11:00pm — Karen Stevenson
Description: 

The National Academy on an Aging Society (NAAS) is studying the characteristics of people who retire early and those who continue to work past normal retirement ages in order to make predictions about the retirement of baby boomers. They are examining two groups of people, those who retire at ages 51 to 59, and those who continue to work past age 60. Staying healthy appears to be an extremely important factor in the timing and quality of retirement, and the ability of retirees to be financially independent.

They found that those who retire before age 60 are more likely to be:

  • Women
  • Less educated
  • In poorer health
  • Less well-off financially

Those who work past age 60 are most likely to be:

  • Men
  • More educated
  • In better health
  • Financially well-off

Health was a significant differentiator, with non-workers highly likely to be in fair to poor health.

Health Status

Age 51-59 Age 60+
Working Not Working Working Not Working
Good to Excellent Health 60% 32% 48% 26%
Good Health 28% 22% 36% 35%
Fair to Poor Health 12% 46% 16% 39%

There was also a correlation between health and financial status. Those in good health were likely to be far better off financially than those in poor health.

Financial Status

Median Household Wealth

Age 51-59 Age 60+
Not Working Working Not Working
Good to Excellent Health $200 $149 $140
Fair to Poor Health $34 $83 $58

In another study, NAAS found that health was a significant factor in the decision to retire. People with chronic health conditions were much more likely to say that health was an important factor in their decision to retire. For example, 76% of those with heart disease said their health was an important factor in their decision to retire, as opposed to 39% of those without heart disease.

The National Academy on an Aging Society (NAAS) is studying the characteristics of people who retire early and those who continue to work past normal retirement ages in order to make predictions about the retirement of baby boomers. They are examining two groups of people, those who retire at ages 51 to 59, and those who continue to work past age 60. Staying healthy appears to be an extremely important factor in the timing and quality of retirement, and the ability of retirees to be financially independent.

They found that those who retire before age 60 are more likely to be:

  • Women
  • Less educated
  • In poorer health
  • Less well-off financially

Those who work past age 60 are most likely to be:

  • Men
  • More educated
  • In better health
  • Financially well-off

Health was a significant differentiator, with non-workers highly likely to be in fair to poor health.

Health Status

Age 51-59 Age 60+
Working Not Working Working Not Working
Good to Excellent Health 60% 32% 48% 26%
Good Health 28% 22% 36% 35%
Fair to Poor Health 12% 46% 16% 39%

There was also a correlation between health and financial status. Those in good health were likely to be far better off financially than those in poor health.

Financial Status

Median Household Wealth

Age 51-59 Age 60+
Not Working Working Not Working
Good to Excellent Health $200 $149 $140
Fair to Poor Health $34 $83 $58

In another study, NAAS found that health was a significant factor in the decision to retire. People with chronic health conditions were much more likely to say that health was an important factor in their decision to retire. For example, 76% of those with heart disease said their health was an important factor in their decision to retire, as opposed to 39% of those without heart disease.