The aim of this paper was to explore the health and wellbeing of rural and remote Australians across various employment and retirement categories, whilst accounting for other psychosocial determinants. Across all six self-reported outcomes, respondents who were not in the workforce rated significantly more poorly than those who were employed, with mean scores also indicating that they rated more poorly than retired participants on each outcome. Recent longitudinal studies using large representative samples have similarly demonstrated that employed individuals have better self-rated health than unemployed people [38] and that most people sustain their pre-retirement self-rated health levels during the initial post-retirement years [39].
The important role of enduring and stable social supports (e.g., currently married; absence of associated relationship stressors) was reinforced in the current analyses, with marital status and recent adverse life events being significantly associated with most of the outcome measures, which is consistent with previous ARMHS findings [10, 14, 29]. The observed associations between remoteness and poorer physical health and financial position are also consistent with earlier findings of greater social disadvantage in remote communities [33].
Viewing the current data set as a whole, there was limited evidence for differential change from baseline in health and wellbeing perceptions across the work/retirement status groups (e.g., minimal interaction effects, indicating: a relative decline in perceived financial position among participants moving from employed to retired; and an initial improvement in perceived relationships among participants transitioning from not in the workforce to retired). Therefore, to a large extent, the window on work/retirement effects provided by these data is a relatively stable one, a multi-phase cross-section if you like, that probably reveals as much about baseline characteristics, long-term employment benefits, and associated capacity to retire effects as it does about recent or pending transitions. In short, the factors that contributed to non-participation in the workforce and/or to retirement decisions are likely to have had an ongoing impact on perceived health and wellbeing. However, these impacts may be less marked if workforce non-participation begins close to the usual or desired retirement age.
The above caveats notwithstanding, our results suggest that the context of retirement is important, and its effects on health and wellbeing differ depending on pre-retirement circumstances. For example, while participants who were not in the workforce for the duration of the study rated significantly poorer mental health, relationships, and satisfaction with life compared with employed participants, these differences tended to dissipate somewhat when participants transitioned from being not in the workforce to retirement. In Australia, the age pension has reasonably similar financial benefits to other government assistance schemes, such as disability benefits; although unemployment benefits are currently substantially lower (however, they were temporarily boosted during the first year of the COVID-19 pandemic). These findings are therefore less likely to be related to financial circumstances, and may reflect the importance of self-perception, sense of purpose, or stigma, and the effects that these may have on an individual’s wellbeing. Negative perceptions associated with receipt of unemployment benefits have also been shown to dissipate with re-entry to the workforce [40]; perhaps, similar reductions in self-perceived stigma occur with transition to an age pension.
Given the broad range of factors impacting on retirement decisions, it is not surprising that there is now considerable heterogeneity in retirement timing [41]. Previous research has also indicated that contextual differences play a role in individuals’ experience of retirement, resulting in inconsistent research findings regarding the effects of retirement on health and wellbeing. In NSW’s 45 and Up study, significant decreases were found in physical functioning for men and women following retirement, with men also reporting a small increase in their psychological distress during this time [42]. An earlier analysis of this data set showed that retirement had a negative effect on psychological distress for those aged 45–64, as well as for men aged 65–74, but that this effect did not occur in those aged 75 and older [43]. The authors, and others [16], speculated that such patterns may be attributable to involuntary retirement in younger age groups (e.g., due to physical health issues, redundancy, or caring responsibilities) and, therefore, may not be the result of retirement directly. Conversely, findings from both the 45 and Up and the Household, Income and Labour Dynamics in Australia (HILDA) studies have shown that retirement has a positive effect on health behaviours, including physical activity, smoking, and sleep [44, 45]. This improvement in health behaviours following retirement may negate some of the physical effects of aging, which may explain the current study’s findings that retirement had no effect on perceived physical health. Overall, findings from the HILDA survey suggest that there is a high level of diversity in people’s post-retirement experiences, with 60% of people experiencing fluctuations in life satisfaction following retirement [46]. In concordance with this, research from the Australian National Survey of Mental Health and Wellbeing concluded that there appears to be no categorical benefit or harm associated with retirement, in itself [47].
Several differences were observed between employed and retired participants across the phases in the current study. Notably, participants who transitioned from employment to retirement during the study initially reported a significantly higher perceived financial position than participants who remained in employment. This may reflect lifestyle changes in retirement that are associated with lower expenses, or may be a contributing factor in the decision to retire (i.e., people who feel more prosperous financially may believe they are in a better position to retire). However, there was a relative decrease in this effect over time, with the two groups reporting similar perceived financial positions by the conclusion of the study.
Retired participants also rated significantly higher mental health, satisfaction with relationships, and satisfaction with life, compare with participants who remained in the workforce across the study. However, caution needs to be exercised in drawing any causal inferences from the study’s findings, with the possibility of bi-direction associations for many of the factors assessed, or even reverse causality. For example, experiencing positive social/emotional wellbeing, and associated lifestyle factors, could contribute both to the decision to retire from the workforce and/or be a potential benefit arising from having made that transition.
Pre-retirement circumstances may still play a part in countries with universal aged pension schemes. A recent New Zealand study examining living standards trajectories for adults aged 55 to 76 [48] demonstrated clear relationships with concurrent mental and physical health. Those with ‘good, stable’ living standards (> 85% of the population) in the period preceding pension eligibility reported relatively stable mental health with age but moderate declines in physical health. By comparison, among subgroups characterised initially by hardship, those with ‘increasing’ living standards reported improvements in mental health with age but no change in physical health, whereas those with ‘decreasing’ living standards reported declining mental and physical health with age. Consequently, the wellbeing of disadvantaged adults could be disproportionately affected by increases in pension eligibility age [48].
When exploring actual and expected reasons for retirement, several significant differences were observed between respondents who had already retired and those who expected to retire in the near future. Those who were yet to retire were more likely to indicate that retirement decisions would be based on financial security or eligibility for superannuation, or due to a declining interest in work or other lifestyle reasons. Interestingly, the proportion of people who had retired for these reasons increased among those recently retired (e.g., 21% of respondents who retired during the study period reported that it was due to lifestyle reasons, compared with 14% of those who had been retired for longer than 5 years). Therefore, while the results of this analysis may reflect perceptions of retirement differing among those who are yet to retire, it may also indicate a genuine change over time in the circumstances surrounding the decision to retire, with control over this decision increasing compared to previous generations. Conversely, ongoing environmental stressors and associated financial hardship within the farming sector may have contributed to higher rates of exit from the industry in more recent times [24, 32].
The observed differences in reasons for retirement between male and female respondents appear to reflect a mixture of generational and cultural factors, with females tending to cite external factors that were rarely listed by males (e.g., retirement of partner, caring for others). Previous research by Atalay et al. [49] reported that a wife’s retirement has a positive effect on her husband’s mental health, and that this effect gets stronger over time. Men whose wife has retired are more likely to engage in voluntary work, socialise more regularly, become an active member of a club or organisation, and are more likely to retire themselves. Consequently, while males and females may report different reasons for retirement, some of the benefits of retirement may still be shared.
On the other hand, eligibility for superannuation and declining interest in work were just as likely to be mentioned by male and female respondents who plan to retire in the next 5 years. This may reflect changing work patterns for females in recent years, with a higher proportion likely to be engaged in full-time work than in previous generations, making them more able to make financially based retirement plans. One other area of difference between males and females in the current study was the tendency for females to report better social relationships than their male counterparts. Previous research has shown that engaging in social groups following retirement increases life expectancy [50], while Olesen et al. [51] reported that there is a differential benefit of social relationships on mental health for retired compared with employed individuals, particularly for those who are younger when they retire.
This study has several limitations. The outcomes were single-item self-report measures and may not be as valid as longer, multiple-item measures. Retirement versus age-based or population cohort effects were unable to be clearly differentiated in the current study. Consequently, the positive retirement effects in the social/emotional outcomes analyses may reflect a mixture of retirement, ageing and/or generational impacts. In addition, only half (47.4%) of the baseline participants completed the five-year follow-up survey, and consequently selective attrition may have occurred, such that the perceived health and wellbeing profiles and reported reasons for retirement are unrepresentative. The reasons for retirement may have also been influenced by recall bias, particularly among those who were retired for more than 5 years.
Other multivariate analysis strategies may have also been worth considering, particularly if a higher proportion of the sample had experienced work/retirement transitions during the study phases and reasons for these decisions, and associated factors, had been prospectively assessed at each survey phase. Under such circumstances, analytical techniques like GLMM (Generalised Linear Mixed Models) could have been used to more fully explore within-subject profiles, such as ‘when and why’ particular transitions occurred, and the magnitude and timing of associated impacts on the outcomes of interest. However, in the current study, self-reported reasons for actual retirement, or planned future retirement, were only elicited during the 5-year follow-up survey.
Finally, with respect to potential policy implications arising from the current study, we offer two modest suggestions:
Firstly, being an active member of the workforce, physically healthy, and having stable social supports all contribute positively to self-reported health and wellbeing. However, while these factors are likely to be equally as important in urban and rural settings, the rates at which they co-occur are likely to be different, as are the systems, strategies and resources needed to counter their absence. We need to continue to advance policies and programs that address the higher rates of unemployment and underemployment, job insecurity, income inequality, and disadvantage experienced in rural and remote areas [52], together with the higher rates of health problems and reduced access to health services [53, 54]. Arguably, localised strategies also need to be fostered within rural communities that address social connection, mental health problems, early intervention, service accessibility, and health workforce challenges [54]. More broadly, policies that promote identification and alleviation of poor health and material hardship in the decade prior to retirement (or pension/superannuation eligibility) may reduce health inequalities in later life [48]. Such imperatives are likely to be even more important in this post-COVID-19 world, including ongoing job guarantees and universal basic income schemes [55].
Secondly, our examination of actual and expected reasons for retirement suggests that those who were yet to retire tended to have relatively narrow and overly optimistic expectations about this transition (e.g., relating to financial security, and changing work and lifestyle interests). Given the broad range of personal, contextual and societal factors that can impact on workforce retention and retirement planning, we probably need to redirect our public education programs away from their historical focus on age and financial security considerations in retirement planning and place greater emphasis on individual experiences, diversity and flexibility (including valuing non-paid community roles such as caring and mentoring). Previous World Health Organization campaigns emphasising ‘active ageing’, and more recent ones promoting the Decade of Healthy Ageing (2020–2030), provide useful positive frameworks for promoting such diversity, sharing expertise, and reducing ageism [56]. Providing encouragement and opportunities for older workers to be retained in the Australian workforce will also require a range of interconnected policy adjustments [57].