Adelaide, March 19: A recent study has underscored the health and wellbeing advantages of retirement, attributing up to a third of these benefits to an individual’s enhanced sense of personal control over their life outcomes, known as ‘locus of control.’
Conducted by researchers at Flinders University and the Paris School of Economics, the study utilized data from the comprehensive Household, Income and Labour Dynamics in Australia (HILDA) Survey.
As debates intensify globally over proposals to increase the retirement age, the findings offer crucial insights.
Dr. Rong Zhu of Flinders University highlights that the sense of internal control gained through retirement contributes significantly to improved health and subjective wellbeing, particularly among less educated individuals, city dwellers, those previously on welfare, and people without long-term health conditions.
The study raises concerns about the potential adverse effects on health and wellbeing that delayed retirement could have, by diminishing individuals’ perceptions of their ability to influence their life outcomes.
In Australia, where the public pension uptake rate is among the highest in the OECD, the research also examined the gradual increase in the eligible age for the Australian Age Pension, which has been raised to 67 for both women and men over recent years.
The collaboration with Professor Andrew Clark from the Paris School of Economics also looked into changes in socio-emotional skills upon retirement, noting that other personality traits and preferences remain largely unchanged for older Australians exiting the workforce.
This research not only sheds light on the positive impacts of retirement on individuals’ sense of autonomy and control but also offers valuable considerations for future policy and economic planning.
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