Retirement has a "drastic" impact on mental and physical health, a ground-breaking new study has found.
The study, published by the Institute of Economic Affairs (IEA), a London-based think tank, found that retirement results in a "drastic decline in health" in the medium and long term.
Although initially there may be a small bounce in health, over the medium-longer term retirement causes a drastic decline in health, the study said.
Retirement is found to increase the chances of suffering from clinical depression by 40 per cent, while you are 60 per cent more likely to suffer from a physical condition.
The effect is the same for men and women, while the chances of becoming ill appear to increase with the length of time spent in retirement.
The IEA said the study suggests people should work for longer for health as well as economic reasons.
The study, which was published in conjunction with the Age Endeavour Fellowship, a charity, compared retired people with those who had continued working past retirement age, and took into account possible confounding factors.
These findings are especially significant given the demographic changes in the UK and the financial pressure this is placing both on state pensions and health care costs, the IEA said in a press release.
Philip Booth, programme director at the IEA, said governments have failed to deal with the 'demographic time bomb'.
Booth said the UK government should go further to deregulate labour markets and allow people to work for longer.
"Working longer will not only be an economic necessity, it also helps people live healthier lives," he said.
Edward Datnow, chairman of the Age Endeavour Fellowship, said: "There should be no 'normal' retirement age in future.
"More employers need to consider how they will capitalise on Britain's untapped grey potential and those seeking to retire should think very hard about whether it is their best option."
The study suggests there is a small boost to health immediately after retirement, before a significant decline in the longer term.
