Poor health is the primary reason more than half of middle-aged workers in the United States retire earlier than planned, according to a recent study out of Penn State University.
The research — led by by Allison Fleming, associate professor of education at Penn State — analyzed data from 12,712 participants in the University of Michigan’s Health and Retirement Study. It examined responses from U.S. adults aged 55 and over across a 28-year period to identify factors driving involuntary retirement.
Fleming’s findings — published in the Rehabilitation Counseling Bulletin — are particularly relevant given current demographic trends.
A greater proportion of working-age Americans are now over 40, and higher rates of chronic illness and disability onset are occurring during midlife, a period typically associated with peak earnings and career success.
The financial consequences of forced early retirement can be severe. Fleming notes that many workers are unprepared to retire a decade ahead of schedule, and the situation is compounded by the fact that it typically takes two years from application to receive Social Security disability benefits, during which time individuals cannot work.
Beyond financial hardship, involuntary retirement is also associated with worse physical and mental health outcomes, including depression and anxiety.
The research identified significant sociodemographic disparities in involuntary retirement rates. Racial and ethnic minorities were up to 55% more likely than White respondents to report forced early retirement, while individuals with a college degree or higher were 63% less likely than those without a high school education to experience this outcome.
In a summary of the study findings, Fleming attributes these differences to privilege within the labor market, explaining that “folks in more privileged jobs may be in a position to ask for accommodations, get flexibility, have paid time off to attend medical appointments.”
The results suggest that state vocational rehabilitation agencies could play a crucial role in helping these workers remain employed longer. Fleming says state vocational rehabilitation agencies — which are funded 75% federally and 25% by states — are well-positioned to address such challenges.
In the summary of the study findings, Fleming says:
“Sometimes we call rehabilitation counseling the best kept secret. Every state and territory has one of these state vocational rehabilitation agencies.”
These agencies employ rehabilitation counselors trained in disability and employment who can develop individualized employment plans, arrange workplace accommodations and even purchase necessary equipment for employers.
However, Fleming emphasizes that these agencies need to raise their profile and potentially partner with medical professionals to reach workers who develop chronic conditions during midlife.
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