Survey: Workers More Optimistic about Retirement, but More Contemplating Phased Retirement

The Transamerica Center for Retirement Studies® has released the results of its annual retirement survey, which found increased optimism among workers around the world about improvements in their local economies, but also noted that many workers envision some kind of phased transition into retirement. According to "The Changing Face of Retirement—The Aegon Retirement Readiness Survey (2014)," just 32% of workers surveyed plan to immediately stop working and fully retire. In the United States, this number is just 24%, while in European nations, which which have histories of compulsory retirement, workers are more likely to plan to stop immediately: for example, , 52% in Spain and 51% in France.

Employment and government policy reforms are needed to facilitate this new approach to retirement, yet change is not catching up with worker demand: only 23 percent of workers say their employers facilitate transitioning from full-time to part-time. Even fewer U.S. workers (21 percent) indicate their workplace policies accommodate the transition. In many cases, change in labor and pension laws, as well as a change in cultural norms, are needed to facilitate implementation of a phased retirement program.

The Aegon Retirement Readiness Survey 2014 is a collaboration between the Transamerica Center for Retirement Studies and Aegon. The survey encompasses 16,000 employees and retirees in 15 countries, with separate country reports available for each of them: Brazil, Canada, China, France, Germany, Hungary, India, Japan, the Netherlands, Poland, Spain, Sweden, Turkey, the United Kingdom and the United States. These countries were selected on the basis of their distinctive pension systems, as well as their varying demographic and aging trends.

Source: Transamerica Center for Retirement Studies® News Release (May 29, 2014)

Generations of Talent Study: Effects of Country, Age, and Career Stage on Employes

The Sloan Center on Aging & Work at Boston College has published a study of employees' work experience, finding that those 40 years old and older are the most engaged and demonstrate the highest level of organizational commitment, and that those 50 years old and older are the most satisfied with their jobs. The "Generations of Talent Study" assessed the effects of country, age, and career stage among employees worldwide, based on work experiences from 11,298 individuals, working for seven multinational companies, at 24 worksites in 11 countries.

Among other things, the study found that employees working in young-developing countries (Brazil, China, India, Mexico, South Africa, Botswana) show higher levels of work engagement and organizational commitment than do those in the old-developed countries (Japan, the Netherlands, Spain, UK, U.S.). In contrast, job satisfaction levels are similar on average for employees working in the young-developing countries and in the old-developed countries. Dr. Marcie Pitt-Catsouphes, Director of the Sloan Center, noted that "[c]ontrary to popular opinion, older workers are the most engaged, and forward-thinking companies need to begin strategizing about how to capitalize on this asset."

In addition to an overall report on "Effects of “Old-Developed” versus “Young-Developing” Country Type and Age-Related Factors on Work Engagement, Job Satisfaction, & Organizational Commitment," the Sloan Center has published individual reports about the effects of country and age on employees for the following countries:

• Brazil
  
• China
  
• India
  
• Japan
  
• Mexico
  
• The Netherlands
  
• Spain
  
• United Kingdom
  
• United States

Source: Sloan Center on Aging & Work at Boston College News Release (December 1, 2011)

India: Older Workers Beng Ignored in Economic Boon? A Commentary

Ravi Srinivasan, writing in the Hindustan Times, suggests that "India’s absurdly low retirement age of 58" means that by 2010, one-fifth of India’s current workforce ("from shop-floor workers to top managers") will be out of the workforce. Even though India has had a demographic drawing card--its vast supply of young workers entering the workforce, Srinivasan reports on recent surveys that show that several industries in India are already facing moderate to severe talent shortage.

“Opening the doors to older workers is a major benefit…it will help organisations retain knowledge and experience, widen the recruitment base and could lead to more customers and greater profits,” commented Soumen Basu, executive chairman, Manpower India.

Thus, "looking beyond those grey hairs makes sound business sense." Otherwise, in a few years, India may have found itself "untutored and fertile" over "educated and aging."

Source: Hindustan Times "India’s overlooked ‘grey market’ workforce" (July 12, 2007)

Global Aging and Retirement: AARP Releases Country Surveys of Opinon Leaders

In conjunction with a conference on "Reinventing Retirement Asia: Enhancing The Opportunities of Aging" held in Tokyo March 15-16, AARP released a survey of opinion leaders in Asia and Oceania, which reveals that most believe their countries are ill prepared to deal with the challenges of an aging population. Although the survey report covers several aspects of aging and society, two core focuses were on older workers and retirement.

AARP's report--"Aging in Asia and Oceania: AARP Multinational Survey of Opinion Leaders 2006"--was prepared by Princeton Survey Research Associates International thrugh a survey of opinion leaders in the United States and in seven countries in Asia and Oceania. The survey was designed to increase AARP’s knowledge of aging issues and attitudes in key Asian markets and to compare attitudes and policies towards aging in the US to attitudes and policies in Asian and Oceanian societies.

According to the overall summary, opinion leaders vary as to the age at which a worker becomes an "older" worker:

Averaging 60 years of age among all opinion leaders interviewed, the average age at which opinion leaders would consider someone an older worker varies somewhat from country to country, ranging from a high of age 66 in Japan to a low of age 55 in Australia. Half of opinion leaders say that the transition to becoming an older worker occurs some time between the ages of 60 and 69.

Other key findings show that opinion leaders perceive older workers as wise, respected, and productive, but that "businesses do not see older people as a
potential source of productive labor and employers are not well prepared for a future workforce comprised of more older workers." Opinion leaders also say that it is a responsibility to society to address older worker issues, older workers should be accommodated, the mid-60's is an appropriate time to retire, and that there should not be mandatory retirement.

In addition to the full report, AARP has issued specific country reports for the United States and for these Asian or Oceanian countries:

• Australia
• China
• India
• Japan
• New Zealand
• Singapore
• South Korea

Source: AARP News Release (March 14, 2007)

Survey: Kelly Global Workforce Index Reports on Ageism Around the World

Kelly Services has released results of the Kelly Global Workforce Index, a survey of over 70,000 workers in 28 countries about their experiences in workforce discrimination on account of age (both young and old). For example, in Australia, the Index reports that almost half of all Australians believe they have been discriminated against in applying for a job, with older Australians now facing the greatest prejudice. Specifically, 48% of workers aged 45 or older felt they had been discriminated against on the basis of their age. In India, age also was the major source of prejudice, cited by 16% of the respondents there.

According to Kelly Services Sales & Operations Director (New Zealand), Steve Kennedy,

“Ageism has overtaken ethnicity and sexism in many areas as the greatest source of discrimination in employment. At a time when we face an ageing population and skills shortages, many organisations are putting obstacles in the way of hiring older people. This can be devastating for individuals but it is also means many organisations are shutting off an important source of talent and diversity. Organisations that don’t address these issues directly can do themselves considerable damage and can suffer costs both direct and indirect. They may suffer high staff turnover, absenteeism, poor morale, low productivity, poor reputation, and also the possibility of civil claims and penalties arising from breach of anti discrimination laws.”

The Kelly Global Workforce Survey Results are available (with free registration).

Source: News Releases Australia (October 2006); Canada;
India (October 19, 2006): New Zealand (October 17, 2006); Spain (October 24, 2006); United Kingdom (October 24, 2006)