Tag Archives: State Pension Age

Retiring early: the links with childhood

When we think of why someone might retire early, our minds are unlikely to make the leap to their childhood for the answer. But a group of researchers interested in what sorts of things affect our later working lives, believe that early retirement may indeed have some of its roots in our younger years. The research sheds new and important light on worldwide efforts to plug pensions gaps and get more people working longer. Hanno Hoven from the University of Dusseldorf outlines why he and colleagues from the International Centre for Lifecourse Studies at UCL think early retirement can be traced right back to having had a tougher childhood. He goes on to explain what the findings might mean for policy in this area.

All sorts of things are likely to influence the point at which older people stop working. External factors like tax incentives to stay in work or changes to when we can claim our State Pension play a role. Then there are our working conditions, what’s going on with our health and how our personal circumstances change as we get older.

A substantial body of research has shown in recent years that people whose socioeconomic circumstances are poor are more likely to retire early than their better off peers. But in our research, we wanted to see if retiring early can additionally be traced back to earlier stages of the life course, more specifically, to having had a tougher life as a child or during mid adulthood.

In addition we wanted to dig a bit deeper into older people’s working lives, by giving a clearer and more detailed picture that describes entire patterns of employment trajectories (and not retirement timing only). To do this, we took into account the employment history between 50 and 70, including details on type of job people did, whether they worked full- or part-time or whether they were self-employed.

We used information collected by the Survey of Health, Ageing and Retirement in Europe (SHARE), which has carried out interviews with more than 28,000 older people from 14 different countries. For our research, we focused on 5,857 men and women from the survey who wereaged 70 or over and who had provided details of their previous working and personal lives.

Work and retirement

We created clusters of their work and employment histories, and you can see in the table below the proportion of men and women in each cluster. On this basis we could link these clusters or types of employment histories to earlier adversity for both men and women.

Looking at types of employment histories between the ages of 50 and 70, we could see that men were more likely than women working in full-time employment or self-employed.. Women worked more likely in a part-time job or looked after home or family during those years.

Adversity in childhood

After modelling the effect of early life information and taking a range of background factors into account (e.g., among others, health conditions prior and during working life in mid adulthood), we were able to see that men who had experienced adversity in childhood were 5 percentage points more likely to have retired early (around age 55) from full-time employment, but they were less likely self-employed in late life. The same was true of men who experienced adversity in adulthood, although it is important to note that the effects were independent of each other.

Women who had suffered adversity in childhood were also less likely to be self-employed and retire later on. However, it was not related to early (around age 55) retirement from a full-time job. Women who faced adversity in adult life were more likely to work part-time or to look after the home/family than their peers who suffered no adversity during that period. This was not the case for childhood adversity.

Some other interesting things emerged from the research, which we believe provides a more comprehensive picture than has been provided before.

One very notable point was that early retirement was more closely associated with being in full-time employment rather than being self-employed. This could be because employed people have more restricted opportunities to work for longer (even if they want to) compared with their self-employed counterparts who have more freedom in deciding when to retire.

Food for thought

For those, including the Government’s Business Champion for Older Workers, who want to see thousands more older workers in British companies by 2022, this will be food for thought. More flexible retirement arrangements are likely to be necessary for employed workers who want to work longer, for example, through retirement schemes that allow a reduction of working time before leaving the labour market. This argument is further supported by the fact that such a cluster (where employed people reduced their working hours before retiring) was not found in our research.

Interesting differences emerged between men and women when it came to their employment histories and the way in which childhood adversity was linked to them. Whilst men were more likely to follow a path of full-time employment into retirement, women were more likely to have been continuously looking after home or family (without retirement) or have worked part-time.

When we factored in childhood adversity in the women’s lives, there was a close link with discontinuous employment in later life. This link was stronger for women than for men. Other research has suggested that traditional gender roles make it harder for women to gain a foothold in the labour market, a disadvantage that any adversity in childhood is likely to compound.

Looking across the lifecourse in this way sheds considerable new and important light on the timing of retirement, and offers some pointers for policymakers looking to increase the numbers of older workers. One specific implication is that certain measures are likely to work better for different age groups and should address different stages of the lifecourse.

There has been a great deal of focus on pension age and working conditions for older people. However, our research suggests that our childhood circumstances are also important and that policies to tackle childhood poverty and create good stable jobs for young people may also have a key role to play over time.

Early Adversity and Late Life Employment History—A Sequence Analysis Based on SHARE is research by Hanno Hoven, Nico Dragano, David Blane and Morten Wahrendorf and is published in Work, Aging and Retirement.

 

Could frailty screening help extend our working lives?

The Government’s Business Champion for Older Workers, Andy Briggs, has called for one million more older people to be in work by 2022. But to enjoy the benefits of working longer, we need to remain in good health. Professor Keith Palmer from the University of Southampton and colleagues investigated whether signs of frailty in mid-life can predict difficulties in continuing to work later on. Here he outlines their findings and makes the case for developing screening to identify those workers most in need of support.

By 2020 the over-50s will comprise almost one third of the UK’s working age population, and more recent Government policies, including changes to the age at which we can claim our State Pension, have been focused on extending our working lives.

But, according to the Centre for Ageing Better, the single biggest reason for people leaving the workforce before retirement age is health, and nearly half of all people between ages 50 and 64 have a long-term health condition. The charitable foundation has been highlighting the need for more support to allow older people to continue to work.

For people with poor health, previous studies have shown that extending their working lives may not be in their best interests. Our research is the first to measure frailty and symptoms of pre-frailty in people aged 50-65 and determine whether and how it is associated with employment difficulties. The idea was to see if there is a way to identify early those people most likely to find it difficult to continue working.

We used information about more than 8,000 people collected through the Health and Employment After Fifty (HEAF) Study, which involves patients from 24 geographically-dispersed GP practices in England.

They answered a range of questions about whether they suffered from exhaustion, had a slow walking speed, a weak grip (determined by whether they had problems opening new jars), low levels of physical activity and whether they had unintentional weight loss in the past year.

People with more than three of the above symptoms were classed as ‘frail’, while those with one or two symptoms were classed as ‘pre-frail’.

They were also asked employment-related questions: were they currently working and, if not, had their previous job ended for health reasons?

Those in work were asked:

  • their total sickness absence over the past 12 months
  • had they needed to cut down at work because of their health?
  • were they coping with the physical and mental demands of their work?
  • Did they expect to be able to do the same work in two years’ time?
  • Was their job secure?
  • Did their work affect their sleep?

Information about their well-being, including back and other pain, was also collected, and participants’ jobs were classified as higher managerial, intermediate or routine/manual.

Health problems

More than one third of the women, and 27 per cent of the men studied were no longer working. Of these, around one third of both sexes said they had left their job because of a health problem.

Disorders or pain affecting movement, such as bone, joint or nerve problems, and mental illness, were the most common reasons for stopping work.

Many of those still working reported difficulties with their jobs, with between 6 and 7 per cent having taken 20 or more days’ sick leave in the last year. Around one third reported problems coping with work’s physical demands, and 20 per cent said their job was insecure.

Four per cent of the group studied were classed as ‘frail’ and, within this group, more than three-quarters reported low physical activity, weak grip and slow walking speed, with women more likely to report symptoms. Nearly one third of the participants were classed as ‘pre-frail’.

When work situations were taken into account, we found three quarters of those classified as ‘frail’ were no longer working, with 60 per cent of these leaving their job for a health reason. Only a quarter of the ‘non-frail’ participants had stopped working.

The odds of not being in paid work were more than ten times higher for frail compared with non-frail participants, while the likelihood of leaving work for health reasons was higher still (up 30-fold). In frail people who were in work, the odds of prolonged sick leave, cutting down a lot at work and struggling with work’s physical demands were about 11 to 17 times greater than for non-frail workers.

‘Pre-frail’ subjects also had more work problems, although not to the same extent as frail subjects. For example, their odds of health-related job loss were up 3.7-fold, and their odds of having prolonged sick leave or having to cut down a lot at work in the past year were up 2.5 to 3-fold.

Frailty effect

The impact of frailty on not being in work, taking more sick leave, and not coping with work demands was about 2–3 times greater among those from poorer backgrounds. However, we found ‘frailty’ was strongly associated with poor work outcomes even for those in higher managerial positions.

Looking at the frailty symptoms individually, we found most of the work problems to be most strongly linked with slow walking speed. Strong links were also found with poor grip strength and exhaustion.

Our findings showed strong associations between certain symptoms, for example those with slow-walking speed also tended to be exhausted or have a weak grip. Similarly, there were links between weak grip and exhaustion, and slow walking speed and low physical activity.

Strong associations

While our findings need further follow up, assessing the same group of patients over time to confirm the links between different physical symptoms and future work problems, our large sample size has confirmed frailty symptoms are common in people aged 50-65.

As the first study linking frailty and pre-frailty symptoms to work outcomes, we have shown strong associations with worklessness, health-related job loss, sickness absence and not coping at work.

Through further study, these symptoms could be refined to form the basis for simple screening tests for older workers, and spearhead the development of targeted support to improve physical function in those most at risk.

To realise the call of the Government’s older workers’ champion for one million more older people to be in work in five years’ time, identifying those most likely to struggle to remain in the workplace will be crucial.

The Government, NHS and employers will need to heed the call from the Centre for Ageing Better to develop workplace adaptations and age-friendly practices, and extend occupational health support and targeted preventive approaches that help people stay in work and stay well.

Further information

Frailty, prefrailty and employment outcomes in Health and Employment After Fifty (HEAF) Study is research by Keith Palmer, Stefania D’Angelo, Clare Harris, Cathy Linaker, Catharine Gale, Maria Evandrou, Holly Syddall, Cyrus Cooper, Avan Sayer, David Coggon and Karen Walker-Bone of the University of Southampton and Tjeerd van Staa of the University of Manchester. It is published in Occupational and Environmental Medicine.

Photo credit: Roberto Trombetta

Organisational change: impact on early retirement

Motivating older employees to stay working longer is seen as a key way of tackling the current pensions crisis facing many countries. Something of a fly in the ointment for those looking to address the problem is the option to take voluntary early retirement, especially where among those who are in good health and best placed to continue working. Dr Nina Breinegaard and colleagues at the University of Copenhagen have been researching the situation in Denmark and, as Nina explains here, they find that a key area of focus for employers and policymakers could be organisational change.

A whole host of things influence our decision around when to retire. These include obvious things like our finances, the state of our physical and mental health and what’s going on with our family and close friends.

Another key influence is what is happening in the workplace. A job may have become too physically demanding for example. A number of studies have shown that when a company is restructuring or downsizing, employees may feel less secure about their position. This in turn can be a catalyst for early retirement, sometimes on the grounds of ill health.

In our research, however, we wanted to try to get to the bottom of how organisational change might influence those without any health problems to retire early. We also wanted to take a close look at the combined influences of the psychological and social sides of work on that decision.

Claiming benefits

In Denmark, men and women who have paid into an early retirement benefits insurance fund can claim those benefits between the ages of 60-64 even if they are in good health. At the end of 2012, 34 per cent of women and 27 per cent of men aged 60-64 received these early retirement benefits.

We linked Denmark’s DREAM database, which collects information on all public benefit payments, with a survey collected over a two month period in 2011 from more than 28,000 public sector workers. This enabled us to look at which employees decided to take early retirement benefits and whether changes at work were linked to that decision.

All this information was then linked to administrative data to take a range of social and economic background factors into account.

We ended up with a group of 3254 employees aged 60-64 who were entitled to early retirement benefits. Details of any changes at their workplace: a change of manager, a merging or demerging of departments or workgroups, moving to a different office or having a new base, were collected independently from current or previous managers.

They also rated the quality of their work environment e.g. how good their managers were at leading, how positive relationships were with other colleagues and how fairly and well concerns and conflicts were dealt with (organisational justice). The answers to all these questions were then used to create overall scores for each employee’s work environment.

Follow-up

When we followed up with our survey participants, we found that one in five women and one in seven men had taken early retirement benefits with early retirement being common in all occupational groups except for doctors and dentists.

65.1 per cent of the 2206 employees for whom we had information about all types of organisational change had experienced one or more changes. Change was most frequent among social and healthcare workers (74.9 per cent) and least frequent among laboratory technicians (46 per cent).

Employees whose workplace had undergone a change of management or a merger were much more likely to have taken early retirement than those who had not. After taking background factors including age, marital status, gender etc. into account where a change in management had occurred, the likelihood of early retirement increased even more. Adjusting for the same factors for those whose workplace had experienced a merger made no difference to the likelihood of early retirement.

Relocation was linked somewhat less closely to early retirement and the demerging of departments or workgroups had no effect at all.

On their own, poor quality work relationships and networks and low levels of organisational justice were also associated with early retirement. How well people felt they were managed had an effect only once background factors (apart from age) were taken into account. When any organisational change was factored in as well as the quality of the work environment variables, the likelihood of an employee retiring early increased further.

Organisational change matters

Taking everything into account, we can say, for the first time, and with considerable confidence, that when it comes to early retirement, organisational change makes a difference, particularly where it involves a change of management. Organisational changes on top of a work environment that is perceived to be poor compounds the likelihood of an employee retiring early.

Given that our research focuses on people who are not retiring because of poor health or disability – the very employees that organisations and policy makers want to encourage to work for longer – our findings are likely to be of considerable interest.

Key would seem to be careful consideration of the impacts of any restructuring within a business or organisation. Improving the workplace environment could also have a role in reducing the numbers of employees calling time on work before the age of 65.

The frequent occurrence of organisational change in the Danish healthcare sector is interesting in the light of medical doctors, nurses and other health and social care workers recently being identified as shortage occupations in Denmark. Managing those changes and improving the working environments of people working in these occupations could be a priority, not least because ageing populations not just in Denmark, but the world over, clearly need these groups of workers more than ever before.

Organizational change, psychosocial work environment, and non-disability early retirement: a prospective study among senior public employees
 is research by Nina Breinegaard, JH Jensen and JP Bonde and is published in the Scandinavian Journal of Work, Environment and Health.

Photo credit: Workers, Justin Lynham

Frailty: what is the connection with our working lives?

People are living longer, and the number of over-65s is expected to reach around one in four of the UK population by 2050. But is retirement a golden age, or will we be dogged by poor health? Wentian Lu from University College London and colleagues investigated how our working pattern throughout our lives affects our health after we retire, and found interesting differences between men and women.

Government policies are focused on extending our working lives, and record numbers of people are now working beyond state pension age. But what effect is it having on our health?

The UK government’s former older workers champion, and pensions expert, Dr Ros Altmann argues that raising the state pension age is a blunt instrument for managing old-age support, which could compound existing social and health inequalities.

With people being expected to work for longer, it is critical to understand whether and how people’s working lives affect their later life health.

A recent study led by colleague Dr Giorgio Di Gessa found no significant health benefits from working beyond state pension age, once social background, previous health and employment histories were taken into account.

Our investigation was the first in England to focus on the impact of earlier working patterns on health in later life.

We used information on more than 1,600 men and nearly 2,800 women from the English Longitudinal Study of Ageing. Health-related information on a range of things such as chronic conditions, pain, depression, heart disease, falls, fractures and joint replacement was used to develop a frailty index.

Using detailed work histories between the ages of 16 and 64 for men (16 and 59 for women), they were divided into groups which ranged from ‘full-time employment throughout’ to ‘unemployed throughout’. For men, we considered those who left work early, at either 60 or 49 years, and those who started work late (e.g because they went to University or spent time gaining other qualifications) and retired at 60.

For women’s employment histories, we also took account of part-time working, long and short career breaks, family care, and those who only had occasional work and retired early.

Frailty over time

The study confirmed that frailty increased with age, accelerating after 65 for women and 70 for men.

The findings showed that women who took a short break for family care and then worked part-time until they were 59 had better health at retirement age than those who were mostly in full-time work. Experiencing long career breaks or only working occasionally also appeared to be more detrimental for women’s health. This finding supports the importance of work-life balance for women’s health in later life.

Women who returned to work part-time after a short career break were healthier than those who went from family care to full-time work. If further studies confirm this result, it would indicate that working part-time while their children are young can have long-term positive benefits for women’s health. The key to maintaining the long-term health of today’s generation of working mothers will be to promote flexible working policies, such as flexible start and finish times, allowing women to balance work and childcare.

Consistent with previous studies, our investigation found that women who have never worked tend to have poorer health than those who worked full-time until the age of 60. What was more surprising was that women who never worked experienced a slower decline in their health beyond the age of 60, even when social background and health-affecting behaviours such as smoking and drinking were taken into account.

Early retirement

Men who retired early at either 49 or 60 had poorer health than those who worked until they were 65. However, leaving paid employment before the age of 65 slowed down the progress of poor health in later life.

This supports the findings of previous studies which show that the burden of ill-health is substantially relieved by early retirement. With Government policies encouraging older people to work longer, our research lends further weight to concerns that this may not be good for those already suffering poor health.

Another unexpected finding was that men who started working later in life and retired at around 60, who tended to be those more highly educated and with greater social advantage, actually experienced more rapid declines in health after the age of 65 than those who worked full-time from an earlier age and retired early. This was a small group, so further research is needed to explore this in more depth.

Despite limitations imposed by some of our employment history groups being quite small, as well as possible biases coming from participants’ subjective reporting of health issues, our findings offer important pointers for developing effective strategies to improve health for older people in the UK.

If, as Dr Altmann suggests, the government could replace the blunt instrument of raising state pension age with more finely-tuned policies, allowing those who can and want to extend their working lives to do so in a flexible way, this would be fairer and give the most vulnerable a better chance of enjoying a healthy retirement.

Further information

Relationship between employment histories and frailty trajectories in later life: evidence from the English Longitudinal Study of Ageing is research by Wentian Lu, Rebecca Benson and Amanda Sacker of University College London, Karen Glaser and Laurie Corna of King’s College London, Loretta Platts of Stockholm University, Diana Worts and Peggy McDonough of the University of Toronto, Giorgio Di Gessa from the London School of Economics and Political Science, and Debora Price of the University of Manchester. It is published in the Journal of Epidemiology & Community Health.

 

Are permanently sick people less sick nowadays?

Brexit aside, there have few topics more hotly contested in recently years than who should get incapacity benefits. The steady rise in the incapacity benefits bill over several decades led some to question whether greater numbers of people could actually be sick and whether this group is actually healthier, with less serious health problems, than had been the case in decades past. But what does research evidence tell us? Bola Akinwale from Public Health England and colleagues at the ESRC International Centre for Lifecourse Studies have looked at 30 years’ worth of data to see.

In the last 30 years of the 20th century, life expectancy for those aged 65 increased more than it had in the previous 70 years. A job market that had been almost completely dominated by men became dramatically more diverse. By the turn of the century, very few men aged 60-64 were in paid work, although that number has since increased.

On the face of it, many of these changes represent good news, but they have also created new challenges around funding pensions and how to keep increasing numbers of older people healthy and active for longer.

Our research looked at the proportions of men and women around State Pension Age who were employed, unemployed, permanently sick (those we might expect to claim incapacity benefits) or retired. We went on to look at their health immediately after retirement age to see if they had died prematurely or had a limiting long-term illness or disability.

When we compared the labour market positions of 60-64 year-old men in 1971 compared with 2001, we saw some big changes:

  • Working – 78.4 percent v 47.5 percent
  • Retired – 7.2 percent v 24.7 percent
  • Permanently sick – 9 percent v 19.7 percent

By 2001, women were almost as likely as men to describe themselves as retired after State Pension Age and 12.4 percent of 55-59 year-old women described themselves as permanently sick in 2001 compared with 3.4 percent back in 1971.

So we see the proportions of permanently sick men doubling over 30 years and quadrupling for women.

Across the same time frame, the risk of dying just before State Pension Age decreased substantially – by more than 60 percent for men and by more than 50 percent for women, irrespective of whether they are in work or permanently sick. In other words, both groups benefited equally from these changes – staying healthier and living longer than their counterparts 30 years previously.

Are sick people less sick nowadays?

 The answer is no and yes – it depends on the comparator.

To try to get to the bottom of this idea that people who are permanently sick are less sick than their historical predecessors, we compared the likelihood of them dying prematurely with that of their working peers.

On the one hand, if they were less sick, we would expect to see the gap between the chances of dying prematurely for these two groups get smaller over the 30-year period. We don’t see that.

Permanently sick men aged 65-69 were three times more likely to die prematurely than their working peers in 2001 and this was an increase on the 1971 figure. For women, the figure was between four and five times over the period we looked at.

On the other hand, it’s clear that this 30 year period brought about some remarkable changes in the working lives and general health of older people, including among permanently sick group. Their life expectancy has increased in line with other people of their age.

But despite these improvements in life expectancy among permanently sick people, compared with employed people their likelihood of dying has, if anything, slightly increased and certainly not decreased.

So, taken together, our research does not support the argument that the permanently sick have less serious health conditions nowadays than they used to.

A key plank of the Government’s policies for people who are unable to work due to illness is to try to support them back to work wherever possible. Our research shows that achieving this aim, requires careful consideration of the types of jobs and working environments that might be suitable for people with chronic illnesses.

If we don’t create enough jobs that older people with chronic illness can sustain and thrive in, life expectancy gaps between those in work and those who leave the workforce prematurely due to ill-health may widen further.

Work, permanent sickness and mortality risk: a prospective cohort study of England and Wales, 1971-2006 is research by Bola Akinwale, Kevin Lynch, Richard Wiggins, Seeromanie Harding, Mel Bartley and David Blane. It made use of linked census and death records in the ONS Longitudinal Study.

Photo credit: ILO in Asia and the Pacific