AMP has placed the spotlight on the earnings impact on Australians suffering from ill health.
In its latest AMP.NATSEM Income and Wealth Report series, AMP presents some sobering findings about the impact on individual and family earning potential for those who suffer ill health.
The Healthy, Wealthy and Wise report focuses on the extent to which poor health diminishes employment and income levels of working-age Australians. Findings show that:
- Half of working-age Australians in poor health are not able to participate in the labour force
- Less than a third of working-age Australians in ill-health are employed full-time
AMP Financial Services Managing Director, Craig Meller, commented ”It is fair to say that we tend to take our health for granted but this report shows that health is an important matter for people of all ages. It shows poor health can limit people’s ability to work and earn to the detriment of their financial well-being and also that of their family.”
The financial consequences of ill-health …places greater emphasis on the importance for Australians to financially better protect themselves
Mr Meller added, “The financial consequences of ill-health are clearly great, which I believe places greater emphasis on the importance for Australians to financially better protect themselves and their families against unforeseen health issues.”
One finding in this report which supports Mr Meller’s comments is that annual earnings of people in persistent poor health drop to just $9,000 (down from approx $12,000 in 2002).
Other key findings include:
- Health is the major reason why people are not in the labour force
- Poor health has a detrimental impact on labour force participation
- Health impacts a person’s ability to earn
- Labour force participation diminishes as poor health persists
- Arthritis is the most common health condition (followed by mental and behavioural problems and asthma)
This report is the 23rd edition of the AMP.NATSEM (National Centre for Social and Economic Modelling) Income and Wealth Report series. AMP advises it publishes these reports to help the community make informed financial and lifestyle decisions and to contribute to important social and economic policy debate.
