Brazil: President Proposes Pension Reform, Including Raising Retirement Age

According to news sources, Brazilian President Jair Bolsonar's proposals for amending the constitution for pension reform include setting minimum retirement ages for women at 62 and for men at 65, and the number of years workers would have to contribute to the system from 15 to 20. In addition, the "proposal would eliminate an option to retire based only on the number of years workers contributed to the pension system, which currently lets women retire after 30 years of contributions and men after 35 years, regardless of their age."

The new rules would phase in over 12 to 14 years.

Source: Wall St. Journal "Brazil’s President Submits Proposal to Overhaul Pension System Brazil’s President Submits Pension-Reform Plan, in a Key Test" (February 21, 2019); The Economist "Jair Bolsonaro tackles Brazil’s pensions problem" (February 21, 2019); Bloomberg "Brazil Still Short of Votes for Key Pension Reform Bill, VP Says" (February 19, 2019); The Brazilian Report "Brazil's long-awaited pension reform proposal explained" (February 20, 2019)

South Korea: Supreme Court Raises Retirement Age for Physical Labor

The South Korea Supreme Court has issued a ruling that the maximum age a person can perform physical labor is 65, breaking a nearly 30-year precedent which set the retirement age at 60 in 1989. The court cited changes in key socioeconomic factors such as the increased average lifespan.

As Lee Suh-yoon notes in The Korea Times:

As the age limit is applied when calculating lost income in compensation cases on the premise that the person would have engaged in manual labor, the ruling is likely to affect the age limits for white-collar professions, which have already been varied, such as 65 for doctors and writers and 70 for lawyers or pastors.

The insurance industry is affected the most directly, because in car insurance, compensation is calculated with the age set at 60. If the age is pushed up to 65, the compensation amount would increase.

Sources: Chosun "Supreme Court Puts Retirement Age at 65" (Februarg 22, 2019); The Korea Times "Ruling on physical labor age limit to have huge ripple effects" (February 22, 2019); The Korea Times New maximum working age" (February 22. 2019)

United Kingdom: Survey Finds 72% of Workers Working Past Retirement Age

The proportion of United Kingdom employees who say they will work beyond the age of 65 remains at 72% for the second year running--but significantly higher than in 2016 (67%) and 2015 (61%)--according to the latest research from Canada Life. In addition, the survey finds:

• 47% of UK employees will be older than 70 before they retire, up from 37% in 2017
• Those at the peak of their financial responsibilities aged 35-44 are feeling the squeeze the most, with 27% expecting to retire after their 75th birthday
• 35% believe that older workers will have to learn new skills or retrain to remain employed but 41% think that a mix of older and younger employees creates a wider range of skills to draw on

Paul Avis, Marketing Director of Canada Life Group Insurance, comments:

The combination of an increase in the cost of living, poor returns on savings and inflation continue to impact the UK’s retirement plans. This is the second year in a row that our findings indicate that more than 70% of the country’s workforce expect to work beyond the age of 65, and there is no sign that this trend will slow down any time soon.

But even as an older workforce becomes more common, the stigma surrounding older workers is proving hard to shake. Employers now have the opportunity to capitalise on the skills of two or even three generations, but only if they address potential generational divides and the changing needs of their employees.

Source: Canada Life News Release (June 20, 2018)

Iceland, New Zealand and Israel are Leaders in Boosting Employment Rates among Older Workers: PwC Reports

PwC has released it 2018 Golden Age Index and reports that Iceland, New Zealand and Israel are the leaders in boosting employment rates among older workers. In addition, the report finds that extending people’s working lives to reflect the aging of their populations could release massive untapped value for their economies to the tune of US$3.5 trillion across the OECD as a whole in the long run.

Current employment rates for workers aged 55-64 vary dramatically across the OECD, from 84% in Iceland and 78% in New Zealand to 38% in Greece and 34% in Turkey.

For example, increasing the over-55 employment rate to New Zealand levels could deliver a long-run economic boost worth around US$815 billion in the US, US$406 billion in France and US$123 billion in Japan - with the total potential gain across the OECD adding up to around US$3.5 trillion. This economic uplift would be combined with significant social and health benefits from older people leading more active lives and having higher self-worth through continuing to work where they wish to do so.

John Hawksworth, Chief Economist at PwC UK, comments PwC thinks "older workers should be encouraged and supported to remain in the workforce for longer. This would increase GDP, consumer spending power and tax revenues, while also helping to improve the health and wellbeing of older people by keeping them mentally and physically active." In particular, PwC notes that "[s]uccessful policy measures include increasing the retirement age, supporting flexible working, improving the flexibility of pensions, and providing further training and support help older workers become 'digital adopters.'"

The findings from [PwC's rigorous statistical analysis of the underlying drivers of higher employment rates for older workers across 35 OECD countries] include that financial incentives like pension policy and family benefits can influence people’s decision to stay employed, and that longer life expectancy is associated with longer working lives. The study also shows that flexible working and partial retirement options can pay dividends for employers, as can redesign of factories, offices and roles to meet the changing needs and preferences of older workers.

The Golden Age Index provides additional details for each country evaluated. For example, looking at the United Kingdom, PwC points out that:

• UK ranks 21st out of 35 countries in PwC’s Golden Age Index
• Up to 23% of UK jobs currently held by 55+ workers could be displaced by automation technology in the next decade
• South East of England has highest older worker employment rate in the UK at 75.3% compared to 63.2% in Northern Ireland

Sources: PwC News Release (June 18, 2018); PwC UK News Release (June 18, 2018)

Russia Raising Retirement Age to 65 for Men and 63 for Women

According to published reports, the Russian government has approved a bill on a gradual increase of the retirement age to 65 years for men and 63 years for women. Currently, retirement age is 60 for men, and 55 for women.

According to Russian Prime Minister Dmitry Medvedev, the bill "proposes to introduce a sufficiently long transition period - to start from 2019 to gradually reach retirement age of 65 for men in 2028 and 63 years for women in 2034."

Reuters states that "[t]he government is likely to introduce legislation into the State Duma, the lower house of parliament, in the near future to enact the VAT and retirement age changes," and that "[i]t is rare for the Duma, which is controlled by the ruling party, United Russia, to oppose the government on major policy initiatives."

Sources: Reuters "Russia, on quest for budget savings, to raise retirement age" (June 14, 2018); Tass "Russian government approves bill to raise retirement age" (June 14, 2018); CNBC "Russian government plans VAT hike and raising the retirement age" (June 14, 2018);

Study Finds Women Retiring Early Creates Gender Gap in Social Security Wealth

The National Bureau of Economic Research has released a study showing that the the pattern of women tending to marry men who are older and then retiring at the same time as their husbands contributes to a substantial gender gap in Social Security wealth [SSW].

In "The Return to Work and Women's Employment Decisions" (NBER Working Paper No. 24429), Nicole Maestas reports that "the opportunity cost of retirement—-in terms of foregone potential earnings and accruals to Social Security wealth—-may be larger for married women than for their husbands," and that using the Health and Retirement Study (HRS), she finds "evidence that the returns to additional work beyond mid-life are greater for married women than for married men. The potential gain in Social Security wealth alone is enough to place married women on nearly equal footing with married men in terms of Social Security wealth at age 70."

For both female cohorts, real earnings increased until age 55 and began to decline at age 57. Men's earnings, on the other hand, continuously decreased from ages 51 to 61. In addition, women's earnings increased by 31 percent across cohorts, but men's earnings increased only 10 percent. So the gender earnings gap shrinks as individuals age into retirement.

For both cohorts, women were more likely than men to retire "early" — before age 62 — or move from full- to part-time employment. In the boomer cohort, 47 percent of women retired or reduced work early, but only 41 percent of men did so.

...

When ranked by the amount of additional SSW they would receive if they worked to age 70, married women in the top quartile would gain an average of over $36,000, compared with only $1,300 for those in the bottom quartile. Despite these potentially significant differences in the financial consequences of early retirement, Maestas finds that the early retirement rate among women with a lot to gain from continued work is comparable to that for women with relatively little potential gain. "This suggests that individuals do not factor these potential gains into their employment decisions, and it raises the question of whether individuals are able to correctly assess the opportunity costs associated with reducing work effort before age 70."

Source: NBER Digest "Married Women Who Retire Early May Forfeit Social Security Wealth" (June 2018)

Switzerland: Survey Finds Majority of Employees Retiring before Reaching Retirement Age

According to Swissinfo.ch, the NZZ am Sonntag newspaper has reported that 58% of Swiss employees stop working before the official retirement age in Switzerland. The survey conducted by the Swisscanto pension fund specialist found that only 32% continue to retirement age (65 for men and 64 for women), and just 10% carry on working beyond that age.

NZZ am Sonntag said the high number of people taking early retirement is rather surprising. The trend goes against current political thinking, which is towards raising the retirement age because of funding problems in the state pension scheme. According to the survey, raising the retirement age to over 65 is likely to continue meeting strong public resistance.
...
Swisscanto board member René Raths also expressed concern to the newspaper. He says that longer life expectancy means longer retirement, and that in 2035, there will be only 2.3 working people funding one pensioner, compared with nearly 4 at present.

Source: Swissinfo.ch "Majority of Swiss opt for early retirement, says survey" (June 3, 2018)

Survey of U.S. Workers in Gig Economy Looks to Effect on Retirement

A Betterment survey report has been issued on the impact of the gig economy on the future of retirement in the United States. "Gig Economy Workers and the Future of Retirement" highlights data from a survey of 1,000 U.S. respondents, 25 years and older and working in the gig economy. According to the report, several themes emerged regarding two categories of workers: "full-time giggers"--workers who rely primarily on the gig economy for their income, and "side-hustlers"--individuals who rely on a traditional full-time job as their main source of income but supplement with a side gig economy job.

Most significantly, Betterment reports that for many of those surveyed, the gig economy is replacing their retirement plan:

• 16% plan to depend on gig economy jobs to supplement their retirement;
• 12% of side-hustlers will keep a side gig job as their main source of income after retiring from their traditional nine-to-five; and
• 1 in 5 full-time giggers say they’ll continue to pick up incremental work in the gig economy as their main source of income following “retirement”
  

In addition, Betterment reports that 81% of gig economy workers say they can’t afford to prioritize saving for retirement. In fact, more than half of gig economy workers "turn to this new way of working for financial reasons, not just for the freedom and flexibility it provides." Source: Betterment "Survey: Future Retirees May Rely More on the Gig Economy" (May 18, 2018)

United Kingdom: Growing Pay Gap between Younger and Older Workers

The Trades Union Congress has released a report finding that, in the United Kingdom, the "generational pay gap"--the gap between the average earnings of 21-30 year-olds and 31-64 year-olds working an average 40-hour week--has increased in real terms from £3,140 in 1998 to £5,884 in 2017. In "Stuck at the start: Young workers' impressions of pay and progression," the TUC finds that

1. young workers are disproportionately affected by wage stagnation
2. young workers are concentrated in low-paying jobs
3. young workers do not have access to the skills development to get on at work
4. young workers are especially vulnerable to insecure work
5. young workers have no voice at work

The report also found that the overrepresentation of today’s young workers in certain industries has worsened the generational pay gap: "Jobs growth has been generally slower for younger workers than for older workers in the past two decades, but the growth that has taken place has been heavily concentrated in five industries: education; health and social care; hotels and hospitality; real estate, renting and business activities; and wholesale and retail."

Beyond raising the minimum wage, the TUC recommends that the government, among other things, (1) develop a strategy to improve wages, productivity, skills development and conditions in low-paid industries, by setting up modern wages councils that can require employers to act; and (2) give all workers, including young workers, the right to time off for training. It also recommends that employers "create genuinely flexible, well-paid, part-time work at all levels of an organisation, particularly for supervisory and managerial roles, so that parents do not have to give up spending quality time with family just to make ends meet."

Source: Trades Union Congress Press Release (June 4, 2018)

Study: Workers and Retirees See a Crumbling Social Contract for Retirement

Almost half of today’s workers and retirees believe that future generations of retirees will be worse off than those currently in retirement (49 percent globally, 46 percent U.S.), according to a study released by the Transamerica Center for Retirement Studies (TCRS). In "The New Social Contract: a blueprint for retirement in the 21st century,"
workers and retirees in 15 countries spanning the Americas, Europe, Asia, and Australia were asked about global trends that are impacting their plans for retirement. The most frequently cited trends were:

• Reductions in government benefits (38% global, 26% U.S.)
• Increased life expectancy (27% global, 25% U.S.)
• Volatility in financial markets follows (24% global, 22% U.S.)
• Changes in labor markets (21% global, 14% U.S.)
• Prolonged low interest rate environment (20% global, 14% U.S.)

The survey report was a collaboration among TCRS, the Aegon Center for Longevity and Retirement (ACLR), and the Instituto de Longevidade Mongeral Aegon. According to Catherine Collinson, CEO and president of Transamerica Institute and TCRS: "People are living longer than any time in history and birthrates are declining. This phenomenon known as ‘population aging’ is financially straining government-sponsored retirement benefits. Simultaneously, employers have been replacing traditional defined benefit pension plans with employee-funded defined contribution retirement plans." Thus, "individuals are expected to take on increasing risk and responsibility in self-funding a greater portion of their retirement income."

Source: Transamerica Center for Retirement Studies Press Release (May 29, 2018)

Singapore: Manpower Ministry Announces New Workgroup on Older Workers

In her speech at Workplan Seminar, Mrs. Josephine Teo, Singapore's Minister for Manpower, addressed strengthening tripartism, and announced that, in focusing on her first initiative concerns--older workers--she would be convening a Tripartite Workgroup on Older Workers. As about one in three of our resident workforce today is aged 50 and above, and older workers have anxieties about the future, particularly as technology disrupts businesses and jobs, the Workgroup would focus on:

• Ensuring an inclusive workforce and progressive workplaces that values older workers;
• Reviewing the longer-term relevance of the retirement and re-employment age;
• Considering the next moves on the retirement and re-employment age; and
• Examining the CPF contribution rates for older workers and their impact on retirement adequacy.

In her speech, Teo also talked about falling fertility rates in other countries and rising participation rates by older workers and raised three questions, which the Workgroup presumably would be addressing:

1. With respect to the international definition of “working-age”, should we continue to assume that most people do not work beyond age 64?
2. If so many countries will have older populations, how can we turn this into a competitive edge for our economy and society? How to make longevity = opportunity for Singapore?
3. For employers, if TFR is falling and populations are ageing, how can we help them adjust their HR strategies to better tap the senior workforce?

Source: Ministry of Manpower Speech at Workplan Seminar (May 28, 2018) Additional sources: Channel News Asia"New tripartite workgroup to study concerns of older workers" (May 28, 2018); The Straits Times "New work group on older workers to look at policies including retirement age and CPF rates" (May 28, 2018); Today "CPF contribution rates for older workers, relevance of retirement age to be reviewed: Josephine Teo" (May 28, 2018)

EBRI Research Shows Continuing Impact of Baby Boomers on Labor Force

Research from the Employee Benefit Research Institute (EBRI) shows that the baby-boom generation has created a wave of sorts moving through the U.S. labor force for the last four decades. According to "Labor Force Participation Rates by Age and Gender and the Age and Gender Composition of the U.S. Civilian Labor Force and Adult Population," published as Research Brief No. 449, as boomers have entered each age demographic, that group has become the largest component of the population and of the labor force, and that, now, as the last of the Baby Boomers enter their mid 50s, and as they are living longer than prior generations, their impact on the age of the U.S. population and labor force is unmistakable.

Among other findings in the paper authored by Craig Copeland:

• While the portion of the total labor force ages 55 or older continued to increase since 2007, the uptick has been primarily attributable to the continued aging of the baby boom generation into these ages, and not to an increasing percentage of older workers remaining in the labor force. Before 2007, the increasing share of workers ages 55 or older was due, both to increases in the labor force participation rates for these ages and to the large baby boom generation beginning to reach these ages.
  
• From the employer perspective, the increase in the share of individuals ages 55 or older in the population and in the labor force means that employers have been, and will continue to be, challenged to provide benefits that meet the needs of these older workers, while still meeting the needs of younger workers who are starting to grow as a share of the labor force.
• The share of the labor force that is ages 55 or older will continue to grow in the short term because of the size of the baby boom generation, but will begin to shrink as the next generation of workers reach age 55.
  
• Many employers are likely to be faced with a bimodal labor force distribution across the ages–larger numbers of both older and younger workers with fewer numbers of workers at ages in between–which presents different (and possibly incompatible) compensation and benefit challenges.

Source: EBRI Press Release (May 22, 2018)

Slovakia Ruling Party Seeking Constitutional Amendment To Cap Retirement Age at 64

According to press reports, Slovakia’s ruling Smer party is proposing a constitutional change to cap the retirement age at 64, reversing a decision that had tied it to average life expectancy. Under current law, the retirement age was set at 62 years, 76 days, in 2071, and it will be extended by 63 days this year, and continue to rise every year as people live longer.

From the Slovak Spectator:

“If we do not cap the retirement age, children born this year will retire at the age of 71,” said Robert Fico, leader of Smer and former prime minister, after negotiating the capping of the retirement age with trade unions and Labour Minister Ján Richter on May 16. “We cannot simply accept this.”

The Reuters story explains:

Smer, a leftist party, originally wanted the cap at 65 years but now wants it lower after talks with centre-right junior coalition Slovak National Party.

A third coalition partner, the centrist Most-Hid party, does not back the measure but some opposition lawmakers said they were open to negotiations. Smer would need 90 votes in the 150-member parliament to pass the law as a constitutional measure.

According to calculations by an independent budget watchdog Budget Responsibility Council (RRZ), the pension age is expected to reach the cap of 65 after 2038.

Sources: Reuters "Slovak ruling party seeks to cap retirement age at 64" (May 24, 2018); Slovak Spectator "Retirement age may be capped in Slovakia" (May 17, 2018)

Finland: OEDC Working Paper Calls for Narrowing Extended Unemployment Benefits for Older Workers

An OECD working paper finds that, different working-age benefits in Finland reduce work incentives and hold back employment. In Pareliussen, J. and H. Hwang (2018), "Benefit reform for employment and equal opportunity in Finland", OECD Economics Department Working Papers, No. 1467, OECD Publishing, Paris, Finland's extended unemployment benefit for older workers are one of several major disincentives being called out for replacement.

As pointed out in the working paper:

In Finland, those aged above 61 on the day their unemployment insurance expires qualify for extended unemployment benefits until the statutory pension age (the “unemployment tunnel”). The unemployment tunnel increases inflows to unemployment substantially, as employers tend to target dismissals to eligible individuals, and because eligible workers may voluntarily choose to use the tunnel. Furthermore, the tunnel reduces outflows from unemployment, as extended eligibility to unemployment benefits discourages job-search. The tunnel is often used as a bridge to ECO/WKP(2018)15 31 retirement, in practice extending benefit eligibility indefinitely. Indeed, the incidence of unemployment peaks at the age of 62, and the unemployed aged 62 or more tend not to search for jobs (Kyyrä and Pesola, 2017; OECD Economic Survey of Finland, 2016).

While pension reform is increasing the retirement age, its effects are not as significant as they could be because the tunnel hasn't narrowed as much:

A pension reform taking effect in 2017 raises the statutory pension age gradually from 63 to 65 years before linking it to life expectancy from 2030onwards,and increases the age threshold for the unemployment tunnel from 61 to 62 years. Increasing the pension age has put the pension system on a sustainable trajectory, but ageing costs are still expected to show up in unemployment, health and longterm care expenditures. The reform is expected to raise the average retirement age by one year, but only increase time in employment by five months due to higher unemployment.

Source: OECD Working Papers (May 25, 2018)

Latin America: Older Worker Participation Rates Driven by Lack of Access to Contributory Retirement Systems

A joint publication issued by the Economic Commission for Latin America and the Caribbean and the International Labor Organization indicates that the lack of retirement income forces many men and women over 60 in the region to remain active in the labor market. In edition No. 18 of the "Employment Situation in Latin America and the Caribbean (May 2018)," it was found that the lack of income from a contributory pension system in more than half of all men, and above all in women, aged 60 or over in Latin America, is the main factor for remaining active in the labor market.

According to projections made by the organizations, the proportion of people aged 60 or older in the workforce will rise from 7.5% to 15% between 2015 and 2050. This is due, above all, to the aging of the population and, to a lesser degree, a moderate increase in older adults’ labor participation.

Despite recent advances in employment formalization and the expansion of contributory pension systems, according to data from eight countries in the region an average 57.7% of people between 65 and 69 years of age, and 51.8% of people 70 or older, still do not receive a pension from a contributory system, with even higher rates seen for women. This situation forces many older people to work: the employment rate for all people 60 years or older totals 35.4% in the region, the study indicates. This proportion is elevated even in age groups that have already exceeded the legal retirement age: 39.3% in the group from 65 to 69 and 20.4% in the segment of 70 years or older. The rates are higher in countries with low coverage of contributory pension systems, the report explains.

Accordingly, Alicia Bárcena, ECLAC’s Executive Secretary, and José Manuel Salazar, ILO Regional Director, indicate in the publication’s foreword that "It is necessary to expand pension system coverage and supplement it with non-contributory pensions to reduce the pressure on older people to continue working, usually in low-productivity jobs, just to have a minimum standard of living at an age when societies should guarantee them the conditions to enjoy their old age with dignity."

Source: Economic Commission for Latin America and the Caribbean Press Release (May 22, 2018)

European Commission Recommends that Luxembourg Work To Increase Employment Rate of Older Workers

The European Commission's 2018 Country-Specific Recommendation (CSR’s) on Luxembourg call for increasing "the employment rate of older people by enhancing their employment opportunities and employability while further limiting early retirement, with a view to also improving the long-term sustainability of the pension system."

According to the Commission:

The employment rate of older people remains particularly low and further measures
are needed to improve their employability and labour market opportunities. This is
also important to ensure the long-term sustainability of public finances. Early
retirement schemes encouraging workers to leave employment remain widespread,
with 59.2 % of newly attributed pensions being early old-age pensions. A law
suppressing one early retirement scheme was passed in December 2017 but its net
impact on the average effective retirement age and on expenditure is uncertain as it
eases conditions on other early retirement schemes. This poor labour market outcome
can also be partly attributed to financial disincentives to work, which are
comparatively high for this group. Encouraging the employment of older workers
requires a comprehensive strategy including measures to help workers remain in active
employment for longer. The ‘Age Pact’, a draft law submitted to Parliament in April
2014, which aims to encourage firms with more than 150 employees to hire and retain
older workers through age management measures, is still pending in Parliament. As
regards education, Luxembourg needs to address the strong impact of students'
socioeconomic background on their education outcomes. This is also important to
respond to the strong demand for highly specialised skills.

Additional Source: Luxembourg Times "Brussels urges Luxembourg to create jobs for older workers" (May 23, 2018)

Malta Rejects European Commission Recommendation To Increase Retirement Age

In response to the European Commission’s Country-Specific Recommendation (CSR’s) on Malta’s 2018 National Reform Programme, the Maltese Government has stated that it "is committed to retain free health care for its citizens and to continue to work towards a more sustainable pension system without changing the pensionable age." In the CSR, the European Community recommended that, in 2018, and 2019, Malta "{e]nsure the sustainability of the health care and the pension systems, including by increasing the statutory retirement age and by restricting early retirement." According to the Community:

The pension system faces the dual challenge of achieving sustainability while ensuring adequate retirement incomes. The long-term sustainability prospects for pension expenditure have improved, mainly thanks to a more positive assessment of Malta’s long-term growth potential. However, the measures introduced in the 2016 budget had only a limited impact on long-term sustainability of the pension system, which therefore remains a significant challenge.

Source: Government of Malta Press Release (May 23, 2018)

Additional source: Times of Malta "Investors may be deterred by shortcomings fighting corruption - EU" (May 23, 2018)

United Kingdom: Prime Minister Includes Aging Workforce among "Grand Challenges" Facing UK

In a speech on science and modern industrial strategy at Jodrell Bank, Prime Minister May spoke about the aging workforce as one of the "grand challenges" facing the United Kingdom, each leading to a mission outlined as part of the government's "Industrial Strategy." As May said, "We know that our society here in the UK, and in other developed countries around the world, is getting older – creating new demands and opportunities," and "through our healthy ageing grand challenge, we will ensure that people can enjoy five extra healthy, independent years of life by 2035, whilst narrowing the gap between the experience of the richest and poorest."

Specifically, with respect to employment, May said: "Employers can help, by meeting the needs of people who have caring responsibilities and by doing more to support older people to contribute in the workplace--and enjoy the emotional and physical benefits of having a job if they want one." However, the policy paper issued at the same time as her speech provides no additional details of how the :mission will help support people to remain at work for longer."

In an article on her speech, Miriam Kenner reports:

Anna Dixon, chief executive of the Centre for Ageing Better, welcomed May’s “commitment to increasing people’s quality of life in older age”, and reducing the “scandalous gap in healthy life expectancy between the richest and poorest in our society”.

"As we live longer, we also need to work for longer,” she added. “All employers need to adopt age-inclusive practices.

“Too many older workers are leaving the labour market prematurely at great cost to them personally, as well as the state.”

Source: Chartered Institute of Personnel and Development "Prime minister calls on employers to do more to support ageing workforce" (May 21, 2018)

Webcast Explores Workers' Comp and Managing Aging Workforce Risks

Marsh's Workers' Compensation Center of Excellence presented a webcast, in which panelists discussed a number of strategies organizations can adopt to help create healthier workforces, which can contribute to safer workplaces. During the webcast, the panel discussed:

• How an industrial athlete approach can improve the conditioning of employees.
  
• Physical changes that occur as workers age and their implications for workplace safety programs.
  
• How to reduce injury rates for older workers.

According to a report on the webcast:

“I would argue that the same risk factors exist for employees regardless of age,” said David Damico, Atlanta-based vice president and senior ergonomics consultant with Marsh Risk Consulting. “That said, certain risk factors such as force, repetition (and) environmental concerns can become more prevalent as we age.”

In addition, Gary Anderberg, senior vice president–claims analytics, Gallagher Bassett Services Inc., is quoted as saying:

Older workers “know what they’re doing.” .... “They know what to avoid, where not to put their fingers and their toes, for example. The most dangerous time for any employee is generally the first year on the job when they’re still learning to work safely. But when they do suffer workplace injuries, for older employees, the medical indemnity costs can be higher, the cost of treatment can be higher in part because the comorbidities older workers tend to have can complicate recovery.”

Source: Marsh's Workers' Compensation Center of Excellence Webcast (May 16, 2018) Additional Sources: Business Insurance "Aging workforce has positive benefits, but injury risks loom" (May 17, 2018); Property & Casualty "Understand the unique risks that come with employing older workers" (June 5, 2018)

Czech Republic: IMF Consultation Report Suggests Raising Retirement Age Will Aid Economy

As part of its staff concluding statement of the 2018 Article IV Mission to the Czech Republic, the International Monetary Fund--in reporting that the Czech economy is growing strongly, but that the challenge is to sustain stable growth through the cycle and over the long term--suggests that raising the retirement age will ease economic pressures. Thus, the report states that:

• Stresses on the pension system are manageable with increases in retirement age.
• Employment has risen very strongly, to rates now above the EU average. But policies can encourage further increases in participation of underrepresented groups. Further increases in retirement age would mitigate the decline in the working age population.
• The framework for life-long learning should be enhanced, given an aging workforce that will be retiring later in life.

Source: International Monetary Fund Mission Concluding Statement (May 16, 2018)