RETIREMENT DECISIONS OF PEOPLE WITH DISABILITIES: VOLUNTARY OR INVOLUNTARY

Transcription

1 RETIREMENT DECISIONS OF PEOPLE WITH DISABILITIES: VOLUNTARY OR INVOLUNTARY M A R G A R E T D E N T O N J E N N I F E R P L E N D E R L E I T H & J A M E S C H O W H A N M C M A S T E R U N I V E R S I T Y F U N D E R : H U M A N R E S O U R C E S & S K I L L S D E V E L O P M E N T C A N A D A,

2 Brief review of the retirement literature Main reasons for retirement: Health Wealth Labour market redundancy Voluntary & involuntary retirement HEALTH PROBLEM MANDATORY RETIREMENT LOSS OF A JOB PROVIDE CARE FOR FAMILY MEMBER JOB STRESS 27% of retirement is involuntary primarily for health related reasons 39% of persons with a disability retire involuntarily

3 Research objectives Analysis of the Statistics Canada Participation and Activities Limitation Survey, What are the key socio-economic characteristics of people with disabilities who voluntarily choose to retire versus those who involuntarily retire? What are the key factors that influence the retirement decisions of people with disabilities? How does retirement affect the income security of people with disabilities who involuntarily retire from the workforce?

4 Background Theoretical model based on Szinovacz & Davey, 2005 life course model of forced retirement. Demographics Gender Race Marital Status Children Human capital and finances Education Income/assets Spouse employed Dependents Occupation Industry Firm size Union Work context Timing cannot be separated from choice No choice Retirement Contexts Voluntariness refers to a persons perception of their control over the event. Health Job loss Restricted choice Care obligations Work demands and attachment Benefits Retirement expectations and timing Their model shows that retirement decisions, whether voluntary or involuntary operate within the context of the individuals sociodemographic, work and retirement context. Perception of forced retirement Figure 1: Theoretical model of predictors of forced retirement perspectives (Szinovacz & Davey, 2005:37)

5 Analysis of 2006 PALS S A M P L E O R I G I N A L L Y F I L T E R E D T H R O U G H C E N S U S Q U E S T I O N

6 PALS definition of disability Persons with disabilities are those who report difficulties with daily living activities or who indicate that a physical or mental condition or a health problem reduced the kind or amount of activities they can do.

7 Subjective definition of type of retirement PALS asked persons with disabilities who had retired during the period if their retirement was: voluntary involuntary Sample size = 9028 They did not code information on previous occupation or industry, although it was asked.

8 Key socio-economic characteristics of people with disabilities by type of retirement Voluntary retirement Involuntary retirement Age 55+ University degree Prairies & BC home ownership higher personal income non low-income status Age less than high school education renter lower personal income low-income status

9 Health & disability profile of persons with a disability by type of retirement Voluntary retirement Excellent, good or fair health at time of retirement Did not retire due to health condition Condition does not prevents them from working Age of onset 0-34 Degree of severity-mild Only 1 disability Type of disability (mobility, agility, pain) Involuntary retirement Poor health at the time of retirement Retired due to condition (completely) Condition prevents them from working Degree of severity-severe or very severe 3 or more disabilities Type of disability (communication, learning, memory, psychological)

10 What are the key factors that influence the retirement decisions of people with disabilities?

11 Disentangling the differences: logistic regression analysis of involuntary retirement Socio demographic and economic characteristics Health & disability controlling for socio - demographic & economic chararteristics Significant Odds ratios Significant Odds ratios Age Permanently retired due to condition No Yes, partially Yes, completely Immigration Status Non-immigrant Immigrant/non resident Education Less HS Graduated High School Postsecondary certificate University degree Age of Onset Agility limitation No Yes Low income status after taxes 3.3

12 Does the type of retirement affect the income security of people with disabilities? Voluntary retirement Median income Involuntary retirement Total personal income $24,000. $15,000. Median income Total household income $57,000. $ 37,000. Low income after tax status 9% 29%

13 Discussion: Key findings Some groups of Canadians with a disability are clearly more at risk for involuntary retirement including: those under the age of 54 those with lower levels of education immigrants or non permanent residents. Age of onset is an important factor, those who acquire a disability after the age of 55 most likely to retire involuntarily. A health shock the sudden onset of disability or a dramatic change in a disabling condition prevents people from continuing in the labour force. The severity of the disability is a key factor in the retirement decision. People with disabilities retire involuntarily when they are no longer able to work due to their condition Involuntary retirement is associated with low income.

14 The end A N Y Q U E S T I O N S? E M A I L : M D E N T O M C M A S T E R. C A