Impact of retirement type on income for people with disabilities

Abstract

The purpose of this paper is to investigate the impact of involuntary retirement on the economic security of persons with a disability. Very little research examines the economic consequences to forced retirement and no research focuses on persons with disabilities who have a higher rate of involuntary retirement than the general population. Analysing the 2006 Canadian Participation and Activity Limitation Survey, we find that persons with a disability who involuntarily retire have lower median personal and household incomes and they are more likely to be under the low-income cut-off point than those who retire voluntarily. When socio-demographic, socio-economic and geographical characteristics are controlled; those who retired involuntarily are more likely to be under the low-income cut-off point than those whose retirement was voluntary. Further, those who retired involuntarily are more likely to receive disability benefits whereas those who retired voluntarily are more likely to receive retirement income. The authors argue for employers and governments to implement accommodation in the workplace and flexible employment opportunities so that more persons with disabilities are able to continue in their employment for as long as possible.

Keywords:

• disabilities
• retirement type
• income security
• involuntary retirement

Notes

1. There were a very few cases with zero personal incomes (slightly over 10) and household income (under 10). These are included in the descriptive analysis, but have been removed from the log-transformed income variables.