Work Adversities, Job Lock, and Well-Being: A Study of Low-Skilled Older Workers in the Era of Delayed Retirement

Changes in policies that restrict early retirement have raised the retirement age for many low-skilled older workers in Denmark. This study examines the prevalence of adversities among these workers and their impact on mental well-being. Using latent class analysis on Danish survey data from 5,453 low-skilled workers aged 57-62 years, five distinct adversity profiles were identified: "poor health" (17%), "adverse working conditions" (11%), "dire financial situation" (11%), "poor health and adverse working conditions" (8%), and "no adversities" (52%). Workers facing adversities report significantly lower mental well-being, with a higher risk of depression and increased stress levels, compared to those without adversities. The risk of poor mental well-being is highest among those experiencing both health and work-related adversities. Additionally, "job lock" - when workers wish to retire but cannot afford to - emerges as a key factor associated with reduced mental well-being across all adversity profiles. The findings suggest that efforts to extend working lives by limiting early retirement opportunities could have unintended implications for the mental well-being of low-skilled older workers. Notably, the findings indicate that firms actively engaging in supportive practices can mitigate some adverse effects, underscoring the critical role employers play in safeguarding the mental well-being of older employees.