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Relationship between access to pension savings and health?
If people can access their pension savings early, it seems to be linked to improved health. A strengthened well-being could possibly be the reason for the identified improvement.
A recent joint study by Singapore Management University and Korea University found that the health of middle-aged people improves when they can access their pension savings earlier. The results were published in the English-language journal "Economic Inquiry".
Earlier access to pension savings makes sense?
Can early access to pension capital help improve older people's health? The current study attempted to determine the effects of such early access on pension assets saved.
Singapore's unique pension policy
Singapore has a unique pension policy. People there are actually allowed to withdraw part of their pension savings from their 55th birthday. Using an evaluation of monthly survey data from 2015 to 2019, the researchers now tried to determine differences in health status that are associated with early access to the savings.
The researchers compared the state of health given by the participants themselves before and after the age of 55, and it was shown that early access to pension assets was actually the general state of health.
Improved mental wellbeing
Finally, detailed analyzes of the underlying mechanisms showed that earlier access to pension assets could promote health by improving mental well-being.
Cost effective health improvement policies
The researchers conclude that allowing early withdrawal of part of the retirement assets could be a cost-effective way to improve the health of middle-aged people. Because this does not necessarily increase the required public funds. (as)
Author and source information
This text corresponds to the specifications of the medical literature, medical guidelines and current studies and has been checked by medical doctors.
- Seonghoon Kim, Kanghyock Koh: DOES EARLY ACCESS TO PENSION WEALTH IMPROVE HEALTH ?, in Economic Inquiry (published 07.07.2020), Economic Inquiry