Abstract
A labour force response to population ageing is to encourage workers to delay their retirement. An understanding of the true reasons for early retirement will inform policies that promote and sustain later retirement.

This study quantifies the impact of heath, income, job satisfaction, living arrangements and other relevant socio-economic factors on retirement decisions. Most Australian and overseas studies on the relationship between health and labour force participation do not deal directly with age at retirement. Studies specifically on retirement decisions ask retrospectively the reasons for retirement. Research has shown that retrospective reasons for retirement are not entirely reliable. This study uses ABS survey data to describe the changing face of retirement. Multivariate models are then built using longitudinal HILDA data to relate the actual health and socio-economic situations at the time of retirement to the timing of retirement, and to quantify the relative importance of these factors. Preliminary results of this study show important differences in factors influencing retirement between early retirees and later retirees. It also shows that while health is a factor in retirement decision, there are other more important factors at play, eg. job satisfaction and availability of retirement income.

Dr Ching Choi is Adjunct Associate Professor at the Australian Demographic & Social Research Institute and Associate Professor (Conjoint) at the Social Policy Research Centre, University of New South Wales.

Dr Peng Yu is a Senior Analyst at the Department of Families, Housing, Community Services and Indigenous Affairs.