How delaying retirement could take a toll on your health and well-being 

With the retirement age creeping higher and higher, a recent study has shed light on the detrimental effects of delaying retirement on individuals’ health and well-being.

The findings reveal that extending work years beyond what people envision for themselves not only impacts their physical and mental health but also erodes their overall satisfaction with life.

The study conducted by experts from Flinders University and the Paris School of Economics serves as a timely reminder, highlighting the significance of autonomy in retirement decisions.

According to their research, individuals who have the freedom to retire at an earlier age experience more profound benefits in their later years.

However, the harsh reality is that only 30 percent of Australians can afford to retire before becoming eligible for a pension.

“We need to consider the unintended consequences of delayed retirement for health and wellbeing via a reduced sense of internal locus of control,” Dr Rong Zhu, a senior lecturer in economics at Flinders University College of Business, Government and Law told AAP.

“If workers work beyond retirement age, they are less likely to consider life outcomes as a result of their own choices and actions.”

The study’s findings suggest that retirement significantly improves older adult’s health and well-being, with a portion of this improvement attributed to an increase in internal locus of control.

“Our paper shows retirement significantly improves older people’s physical and mental health as well as their subjective well-being as measured by life satisfaction,” Dr Zhu said.

“One third of the positive impact of retirement on health and one fifth of that on wellbeing can be explained by the retirement-driven increase in internal locus of control.

“Facing an increased eligibility age for the age pension, if an older person defers retirement, then the health and wellbeing benefits associated with retirement also come at a later date.”

With the eligibility age for the age pension increasing to 67 for both men and women, many individuals may find themselves working longer than they anticipated.

This delay in retirement could postpone the health and well-being benefits associated with retiring, potentially depriving individuals of years of fulfillment and contentment in their later years.

“The increase in the retirement age to 67 for men and women can be tough, when they might have been enjoying the benefits of retirement a lot earlier,” Dr Zhu added.

As the discourse surrounding retirement policies continues, the study serves as a poignant reminder of the importance of affording individuals the opportunity to retire at a time that fosters their health, happiness, and autonomy.

Delaying retirement may not only jeopardise individual well-being but also strain social support systems already grappling with the challenges of an ageing population.