Socioeconomic inequalities in health-related retirement in Europe

Background

Health-related retirement is an important pathway through which health inequalities may translate into labour-market exclusion and socioeconomic vulnerability at older ages. This study analyses socioeconomic inequalities in the probability of retiring due to one’s own health among older workers in Europe.

Methods

We use longitudinal data from the Survey of Health, Ageing and Retirement in Europe (SHARE) to analyse transitions from employment into retirement among individuals aged 50–64. The analysis focuses on individuals who retire between two consecutive waves. The main outcome is whether respondents report their own health as a reason for retirement, based on a multiple-response question. Socioeconomic status is measured through educational attainment, equivalised household income and net wealth. Logistic models are estimated conditional on retirement, controlling for demographic characteristics, country and wave effects, and pre-retirement health indicators.

Results

A consistent socioeconomic gradient is observed. Compared with individuals in the lowest wealth quintile, those in the highest quintile have significantly lower odds of retiring for health reasons (OR = 0.43; 95% CI: 0.37–0.51). A similar pattern is found for equivalised household income, with the highest quintile showing lower odds than the lowest quintile (OR≈0.49; 95% CI: 0.38–0.62). Estimated probabilities decline from around 3.6% to 1.6% between the extremes of the wealth distribution. Significant cross-country differences are also identified.

Conclusions

This study provides evidence of socioeconomic inequalities in health-related retirement in Europe. Lower socioeconomic groups face a higher risk of leaving employment for health reasons, even after accounting for prior health status. These results highlight the relevance of institutional context for active ageing policies and strategies aimed at reducing health and labour-market inequalities in later life.

Key messages

• Health-related retirement shows a clear socioeconomic gradient in Europe, with lower-income and lower-wealth older workers more likely to leave employment for health reasons.

• Active ageing policies should address both health inequalities and labour-market vulnerability, particularly among socioeconomically disadvantaged workers approaching retirement age.