Mostly all of us understand that recession is a bad thing, especially when employment and finances are concerned. However, at a younger age, we have more energy and vigor to fight recession and find a way to manage our life. According to some studies, recession can be good for younger people since it gives them a break from the usual stressful routine and pollution factors. With their high resilience, young people are able to fight recessions much better.
At an older age, most people find it more difficult to curb off the negativity of recessions. There are several reasons that make recession much more stressful for older people. A recent study has indicated that facing job loss due to recession in the later years of life can shorten the life expectancy of older people and cut it short by approximately three years.
The study indicates that people who lose their jobs in their fifties are more likely to suffer health issues. This can result in almost a 10% increase in the number of people who will not live beyond the age of 79 who are otherwise expected to live longer. There were a number of factor recognized behind this development.
One of the major reasons was the abrupt loss of income and the prospect of having fewer savings at the time of retirement. A large number of older people are usually saving a substantial amount of their income as their retirement plan, in order to lead a secure life in the future. The lost income of all these working years can mean a huge loss in these plans. It can also result in increasing debts which can get hard to manage.
Another reason of the downhill descent of health in older people due to unemployment is the loss of health coverage and less access to health care facilities. Since health insurance and health care rate are getting expensive, a loss of income can lead to deprivation from accessing appropriate health facilities and can result in deteriorating health.
For older people, finding another job after the recession period is also substantially difficult. Although there is some decrease in the unemployment period among older people in recent times, it is not substantial. Out of all those people aged 55 to 64 who lost their jobs in the recession period, less than half were working again at the beginning of this year according to a latest report by the Department of Labor.
The situation is worsened by the decreasing value of housing and unstable stock market situation. All these factors can lead to an insecure financial situation for older people. Consequently, it can cause depression and a decline in the health of older people. Depression is also another major reason that causes several other issues such as excessive use of alcohol.
The study also indicated a slight silver lining in the scenario. It indicates that people who face unemployment at the age of 62 or more are not vulnerable to this decrease in life expectancy. The reason behind this is the availability of Social Security, the minimum age limit for which is 62, and availability of Medicare, eligibility of which starts at the age of 65.
The prospect of having a secure net to rely on in case of unemployment protects these people from most of the problems related t o unemployment at an older age. However, the current political scenario may lead to change in the structure of Social Security, making it available after a much longer time. The absence of these structures can result in a worse health situation for older people.
All in all, it is apparent that recession can not only cause a financial setback for older people, it can also cause harm to their health and reduce their lifespan substantially. Increased debt and lack of health coverage can prove to be quite detrimental for older people. If you are already having debt problems, debt advice can be obtained from Consolidated Credit.