The long term financial impacts of CVD: living standards in retirement

Schofield, Deborah, Kelly, Simon, Shrestha, Rupendra, Passey, Megan, Callander, Emily, and Percival, Richard (2012) The long term financial impacts of CVD: living standards in retirement. International Journal of Cardiology, 155 (3). pp. 406-408.

[img] PDF (Published Version) - Published Version
Restricted to Repository staff only

View at Publisher Website:


Background: Cardiovascular disease (CVD) has significant economic costs, however these are generally estimated for the present-time and little consideration is given to the long term economic consequences. This study estimates the value of savings those who retire early due to CVD will have accumulated by the time they reach the traditional retirement age of 65 years, and how much lower the value of these savings are compared to those who remained healthy and in the workforce.

Methods: Using Health&WealthMOD – a microsimulation model of Australians aged 45 to 64 years, regression models were used to analyse the differences between the projected savings and the retirement incomes of people by the time they reach age 65 for those currently working with no chronic condition, and people not in the labour force due to CVD.

Results: Over 99% of individuals who are employed full-time will have accumulated some savings at age 65; whereas only 77% of those who are out of the labour force due to CVD will have done so. Those who retire early due to CVD will have a median value of total savings by the time they are 65 of $1833. This is far lower than the expected median value of savings for those who remained in the labour force full-time, who will have $281 841 of savings.

Conclusions: Not only will early retirement due to cardiovascular disease limit the immediate income and wealth available to individuals, but also reduce their long term financial capacity by reducing their savings.

Item ID: 41334
Item Type: Article (Research - C1)
ISSN: 1874-1754
Keywords: economic impacts; savings; cardiovascular disease; retirement
Funders: Australian Research Council (ARC), Pfizer Australia
Projects and Grants: ARC LP07749193
Date Deposited: 26 Nov 2015 03:39
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140208 Health Economics @ 100%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910209 Preference, Behaviour and Welfare @ 50%
92 HEALTH > 9204 Public Health (excl. Specific Population Health) > 920408 Health Status (e.g. Indicators of Well-Being) @ 50%
Downloads: Total: 5
More Statistics

Actions (Repository Staff Only)

Item Control Page Item Control Page