Edition

Actuarial Impact of Mental Health Issues in Retirement

Background and Purpose

Awareness of and concern about the mental health and well-being of all demographic groups throughout the United States and Canada had been rising well before the emergence of COVID-19 in March 2020. With the onset of COVID-19, however, those concerns increased significantly, particularly with respect to older segments of the population. This has been partially driven by the mitigations implemented to combat COVID-19 and minimize spread of the virus. Without a doubt, many retirees and those approaching retirement have acutely felt the reverberations of these measures and experienced their effect on their own mental health or that of family members, friends, and close associates.

With COVID-19 shining a bright light on mental health issues, the Society of Actuaries (SOA) Research Institute’s Aging and Retirement Strategic Research Program and Health Care Cost Trends Strategic Research Program see a need for a broad examination of the impact of those issues on and from the perspective of a variety of retirement system stakeholders. As a result, the Program is issuing this call for essays on one or more aspects of aging, retirement, and mental health/well-being that will provide actuaries, financial planners, and professionals in related fields with insights into the actuarial impact of mental health issues in retirement. The intention is to publish a collection of essays that will serve as a resource for readers on these issues, provoke conversation and debate on dealing with some of the issues, and set the stage for future research. From an organizational perspective, this call for essays represents another important effort in the SOA Research Institute’s interest in promoting better mental health and minimizing the risks and challenges posed by related issues.

Scope

There are several important overarching considerations regarding the scope of this call for essays:

  • Cognitive and Non-Cognitive Mental Health Issues – Both cognitive and non-cognitive issues fall within the scope of this effort. It will be helpful for authors to clarify which major category they are addressing. However, it is also the case that some issues may span both cognitive and non-cognitive aspects, and thus not fall exclusively into either category. Either way, clarification on the applicable categories will be helpful in the review of essays. Besides cognitive issues, examples of mental health conditions covered under the scope of this call for essays include depression, anxiety disorders, bipolar affective disorder, etc. Also covered are instances of medically induced mental health issues such as those caused by certain medications.
  • Inherent Issues Separate from COVID-19 vs those Directly Related to COVID-19 – Issues related both to COVID-19 and those outside of COVID-19 are within the scope of this call for essays. As in the above bullet, it will be helpful to specify how the author plans to address this consideration.
  • Actuarially Driven Content – As mental health in retirement spans a wide variety of topics, the scope of this call for essay is focused on issues that are actuarially driven in the sense that they concern financial and cost impacts as well as other areas of expertise associated with the actuarial profession. Please note that essays that deal primarily with clinical and treatment issues would not fall under the scope of this call for essays.
  • Personal Experiences – The organizers are interested in submissions that describe personal experiences of retirees and those of family members and others who are supporting retirees dealing with these issues. It is hoped that this will encourage a greater number of submissions.

Sample Topics of Interest for Essays

The organizers seek essays that address the actuarial impact of mental health concerns on retirement and retirement-related issues. This invitation has been deliberately written broadly to allow respondents the flexibility to address this topic from one or more perspectives and approaches. Respondents are free to choose from one or more of the following sample topics below or propose others that fall within the scope of this area as described in the above section. Please note that the list is not meant to be exhaustive but merely examples of proposed topics that may be considered. Respondents are welcome to address other questions or topics that fall under the general scope of this call for essays.

Sample topics include:

Mental Health Issues in Retirement

  • How do mental health concerns vary generally over stages of retirement and what are the related financial risks? Are there specific concerns that vary based on population subgroups?
  • Have surveys been done on people struggling with mental health issues in retirement, and are there relevant results that may give insight into the financial stress with which they may contend? How did COVID-19 aggravate these struggles and financial stresses?

Experiencing Mental Illness

  • What are the major types of mental illnesses that can impact finances in retirement and how do financial challenges vary across them? What strategies may be employed to manage the related risks and forestall the consequences?
  • What mental illnesses have been more pronounced since the onset of COVID-19 and which, if any, have receded? How do these trends impact retirement risks? From a financial perspective what special considerations may be related to those dealing with long COVID in retirement?
  • Does lack of mobility contribute to greater mental health decline and costs in retirement? How so and do costs vary in magnitude over stages of retirement?
  • What role does housing play in mental health issues in retirement? What housing options are there for those with any mental health issues in retirement where they can no longer maintain their own home and what are the financial implications? In what ways does living in retirement communities and other senior living arrangements impact mental health in retirement?
  • What is the relationship between physical health and mental health in retirement? How do exercise and other wellness practices such as good nutrition and hydration impact mental health in retirement?

Financial Impact/Risks of Mental Illness in Retirement

  • For those suffering from cognitive decline, how prevalent is financial fraud and what can be done to minimize it? What type of financial planning is most effective for minimizing fraud? How can financially protecting retirees be balanced against impinging on their freedom? How is financial fraud in this area expected to grow or evolve in the coming years with the advent of artificial intelligence (AI) and large language models (LLM)?
  • For those suffering cognitive decline and related social functioning challenges, what would be sources of greatest financial risk? What are strategies to help adapt to these challenges and minimize related risk?
  • What financial challenges does lack of healthcare access for mental health issues pose to retirees? How does this compare to those currently employed? Are there differences between early retirees (ages 55-65) vs those later in life? How do the financial risks vary for those living in areas which have more acute provider shortages? As an example, this can be problematic for those living in rural areas without nearby access to neurological and psychiatric specialists.

Costs of Mental Illness

  • Which mental health conditions present greater costs in retirement and which may more greatly impact retirement savings? Costs may include not only individual healthcare expenditures, but other costs that are borne by families, society and extra mortality associated with mental conditions.
  • What are the most challenging long-term care costs caused by mental health issues and what can be done to plan for them? How do these issues impact the mental health of caregivers who may be providing the bulk of needed care? What may be potential financial resources or interventions to alleviate caregiver burden and mental stress?

Care of and Support for People Dealing with or at Risk of Mental Illness in Retirement

  • How do financial issues of mental health and access to care in retirement vary across North America and countries outside of North America?
  • What is the role of mental health support groups in retirement and what financial risks can they help address?
  • What are the financial impacts of loneliness in retirement? What are the benefits of social networks and engagement activities on mental health in retirement and how do they relate to retirement expenses and savings? Does this vary by the type of engagement, such as volunteering with organizations, meeting with friends, attending classes and lifelong learning, or other activities?

Institutional Responses to Mental Health and Retirement Issues

  • What triggers can be communicated to individuals to raise self-awareness of their own mental health challenges and minimize financial risk? How can people better protect themselves in terms of preserving their retirement income and resources? How does this vary based on retirement plans, i.e., defined benefit vs defined contribution vs others?
  • What are employers, financial advisors, and banks doing to identify mental illness/cognitive impairment among employees and clients and protect them from frauds, scams, elder financial abuse, etc. and minimize the potential risks associated with mental illness? Have they observed any uptick in these problems since COVID-19?
  • Are there data on the extent to which mental illness (particularly cognitive impairment)
    is triggering retirement, especially earlier-than-intended-retirement? What are the implications for the financial well-being of the retiree? Are employers experiencing greater costs (e.g., in terms of lost productivity) as a result?
  • Are employers, financial advisors, pension plan investment experts, etc., factoring mental health issues into their strategic planning given the aging of the population, especially the aging of the very old population? Specifically, do—or should—the cost aspects of mental health issues be of concern to these groups? If so, in what way?
  • What innovations in private insurance products and public programs (health, retirement, life, disability, etc.) may better help address the costs of mental health needs in retirement?

Rules for Submission of Essays

Timeline

The deadline for submissions is September 30, 2023. Essays will be published as soon as possible in a formal collection.

Length and Instructions for Submission

Essays must be submitted in English with a desired length of between 500 to 2,500 words. There is no requirement for formal or extensive footnoting.

Author information must be submitted with the essay and include name; credentials or designations (if appropriate); title; organization/company; e-mail address; and phone number. Please provide all author information at the beginning of the essay.

Essays that contain any overt political statements, commercial content, and other inappropriate material will not be accepted. Articles must comply with the SOA's antitrust guidelines.

Please submit your essay via e–mail to Research-AR@soa.org.

Awards

$5,000 in award money has been allocated for this call for essays. The review committee will select the leading essays and determine how to allocate the award money among them. Consideration will be given to creativity, originality and the extent to which an idea might help promote further thought in this area. In exchange for award money, selected authors will be required to assign all copyrights in their essays to the Society of Actuaries Research Institute.

Authors are ineligible for awards if an essay is based on an SOA Research Institute-sponsored and funded research study conducted by the author. However, authors are welcome to submit such essays for publication consideration.

Publication and Presentation

Depending on how many essays are received and the range of the topic areas, a suitable format for electronic publication and dissemination will be selected. Essays may also be presented at an SOA meeting, webcast, or other professional development event.

In addition, other venues for publication or presentation of the ideas outside of the Institute will be considered. It is hoped that publication of the collected essays will further knowledge and stimulate discussion as well as promote future efforts in this area.

Rights Granted

Please understand that by submitting an essay for consideration, the essay author(s) is granting to the Society of Actuaries Research Institute an unlimited license to print or republish their essay, with proper attribution given to the author(s).

Questions

Please direct any questions regarding this Call for Essays to Research-AR@soa.org.