skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Finish work early and reap the health benefits


Published 13 July 2018

Studies show that retiring sooner rather than later can add years to your life. Rosemary Ryan explains.

When I retire. It’s a phrase often said with the kind of wistful tone used for talk about the possibility of winning a lottery. But here’s a reason to get seriously focused on preparing for retirement – it could add years to your life.

The link between retirement and health benefits, including greater longevity, has been revealed in various research studies. A 2017 Dutch study, The causal effect of retirement on mortality, looked at what happened to a group of civil servants who responded to an early retirement offer at their workplace. It found the men were 2.6 percentage points less likely to die over the next five years than their non-retiring colleagues.

The positive effects are echoed in other studies around the world. A US study, The health consequences of retirement, found about seven years of retirement can be as good for health as reducing the chance of getting a serious disease (such as diabetes or heart conditions) by 20 per cent.

Closer to home, a landmark Australian study by the University of Sydney, Retirement—A Transition to a Healthier Lifestyle?, concluded retirement can be good for you, revealing an association with a series of positive lifestyle changes contributing to better health. When people retired they became more active, slept better and reduced their sitting time – something that’s gained notoriety as a key health threat.

Published in the American Journal of Preventative Medicine in 2016, the study followed the lifestyle behaviours of 27,257 working Australian adults for more than three years, during which time more than 3000 retired.

Why retirement can be good for your health

After controlling for various factors, it found those who retired were more likely to enjoy a healthier lifestyle than their counterparts.

Retirees adapted the following habits:

  • increased their physical activity by 94 minutes a week
  • reduced sedentary time by 67 minutes a day
  • increased sleep by 11 minutes a day
  • 50 per cent of female smokers quit smoking.

“Our findings weren’t surprising,” says lead researcher Melody Ding, senior research fellow at Sydney University’s School of Public Health. “Several studies in Europe and North America found retirement was associated with more physical activity and leisure time. This is likely because retirement reduces barriers to exercise like lack of time, low energy from work and competing priorities.”

Sometimes it takes a major life event like retiring for people to think about reformulating their lives, adds Ding.

“Retirement really gives people the opportunity to think about their lives and possibly change their lifestyle, plus they have more time, and less stress from their occupation. It’s an opportunity to engineer a healthier lifestyle. All these components, like healthy sleep duration, physical activity and cutting smoking, are important ingredients in longevity.”

Not all retirement is created equal, however. The study showed those who retired before 65, those who worked full-time before retirement and those who retired voluntarily benefited most from the lifestyle improvements.

Ding says retirement may also have a downside with research suggesting some may experience feelings of losing their identity, usefulness and value to society, sense of purpose, and the social relationships related to work.

“For some people retirement is also associated with reduced income, social exclusion and physical and mental deterioration,” she says.

Why you need a vision for your retirement

Avoiding these possible negative outcomes and ensuring a rewarding and healthy retirement requires a vision and some forward planning. Ding urges people to start thinking about their retirement, the lifestyle they want, and begin the transition to retirment long before their working life is over.

“With any sort of behavioural change it’s important to start planning ahead of time, starting to get healthy in a purposeful way rather than just waiting until your last pay check,” she says. “And also start to reconnect with other networks in a way to make the retirement life more meaningful. What comes with retirement sometimes is a sense of loss, loss of purpose, but that can be found in other forms apart from paid work, like volunteering.”

Making sure you have sufficient money to fund the retirement you envision is also where careful thought and planning is crucial.
 

Setting yourself up for a comfortable retirement

Personal financial expert Noel Whittaker says financial literacy and a keen interest in learning early how to make the most of your money is a key factor in achieving a rewarding retirement. Your super account is a really important part of this.


“You need to understand from a young age that how much you’ll have when you retire and how long your money will last depends mainly on the rate of returns you can get,” he explains.

“If you’re generating a better rate of return ongoing you’ll have more when you retire, simple as that. So you need to understand you need to get a diversified portfolio early and understand the way it works.

“The worst thing is that someone gets to 60, and gets a $400,000 super payout and all they’ve ever had is a bank account and they don’t know what to do with it.”

Particularly important is a passionate interest in your superannuation. “[Superannuation] is like a herb garden,” says Whittaker. “If you want to keep your garden nice and provide yourself with lovely fresh herbs, you’ve got to take care of it.”

One thing to consider is how many years you have left to work and whether the compulsory super guarantee payments your employer makes will add up to enough super for you in your post-work life. If not, then consider your own super contributions, to boost your eventual balance.

 

Talk to us about superannuation

13 12 87

Mon-Fri 8am to 7pm (AEST) 

What to read next

Article

What do you want your retirement to look like?

Experts argue that instead of going to the numbers when planning for retirement, you should look at the bigger picture.


Article

What's the price of a happy retirement?

How much do you need for retirement? Experts say to aim for up to $1m. Learn how to set goals and a budget.

Article

How can super give you the independence you're looking for?

Meeting a financial planner to understand your super can be one of the best things to do for your future. See the benefits.

OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496, AFSL 238346, RSE L0000673 is the trustee of the Retirement Portfolio Service (ABN 61 808 189 263, RSE R1000986) (Fund) and issuer of the interests in “ANZ Smart Choice Super”, a suite of products consisting of ANZ Smart Choice Super, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.

ANZ Smart Choice Super is issued by OnePath Custodians and distributed by Australia and New Zealand Banking Group Limited (ANZ) 11 005 357 522. ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Custodians is the issuer of this product but is not a Bank. Except as described in the relevant Product Disclosure Statement, the obligations of OnePath Custodians are not deposits or liabilities of ANZ or its related group companies. None of them stands behind or guarantees the issuer or the capital or performance of any investment. Such investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Returns can go up and down. Past performance is not indicative of future performance.

This information is subject to change. You should read the relevant Financial Services Guide (FSG), PDS, product and other updates (for open and closed products) available at ANZ.com.au/super and consider whether the product is right for you before making a decision to acquire, or to continue to hold the product. Updated information will be available free of charge by calling Customer Services on 133 665.

Taxation law is complex and this information has been prepared as a guide only and does not represent tax advice. Please see your tax adviser for independent taxation advice.

The information on insurance cover is a summary only of the terms and conditions applying to the insurance cover. To the extent there is any inconsistency with the terms of the insurance cover provided by the insurer, the terms of the insurance policy will prevail.

The information provided is of a general nature and does not take into account your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances or objectives. The case studies used in this article are hypothetical and are not meant to illustrate the circumstances of any particular individual. Opinions expressed in this document are those of the authors only.

ANZ does not represent or guarantee that access to the ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

In addition to their salary, ANZ staff members may receive monetary or non-monetary benefits depending on the product they are selling or providing advice on.

Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc.

You need Adobe Reader to view PDF files. You can download Adobe Reader free of charge.