The personal and national costs of mental health conditions: impacts on income, taxes, government support payments due to lost labour force participation

Abstract

BackgroundMental health conditions have the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow on impacts to both the individual and the state.MethodCross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model was used to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefits payments and lost GDP as a result of early retirement due to mental health conditions in Australians aged 45-64 in 2009.ResultsIndividuals aged 45 to 64 years who have retired early due to depression personally have 73% lower income then their full time employed counterparts and those retired early due to other mental health conditions have 78% lower incomes. The national aggregate cost to government due to early retirement from these conditions equated to $278 million (£152.9 million) in lost income taxation revenue, $407 million (£223.9 million) in additional transfer payments and around $1.7 billion in GDP in 2009 alone.ConclusionsThe costs of mental health conditions to the individuals and the state are considerable. While individuals has to bear the economic costs of lost income in addition to the burden of the conditions itself, the impact on the state is loss of productivity from reduced workforce participation, lost income taxation revenue, and increased government support payments - in addition to direct health care costs.

Enhancing the Health and Employment Participation of Older Workers

“…Early retirement due to mental ill health costs approximately $1.8 billion in lost gross domestic product per annum (Schofi eld et al 2011 ). Early retirements, lost productivity, and individual costs have prompted Safe Work Australia, the country's primary workplace health and safety policy development organisation, to prioritise mental disorders (Safe Work Australia 2012 ).…”

A review of the economic impact of mental illness

“…19 Schofield et al estimated the national cost of this early retirement at A$278 million (A$367 million in 2015) in lost income taxation revenue, A$407 million (A$537 million in 2015) in additional transfer payments and around A$1.7 billion (A$2.2 billion in 2015) in gross domestic product. 26 …”

Impacto de los trastornos psiquiátricos comunes y las condiciones crónicas físicas en el individuo y la sociedad

“…Sin embargo hay una variedad de costos asociados con las condiciones de salud, costos económicos para el individuo en términos de costos directos de la enfermedad y de ingresos perdidos, y para el gobierno en términos de participación reducida en el mercado laboral, pérdida de ingresos por impuestos y costos directos relacionados con la seguridad social. 27 Estos costos económicos se añaden a costos ocultos no necesariamente económicos como el impacto en el matrimonio y otras relaciones interpersonales.…”