Study Finds Only 35% of University Faculty Expect to Retire by "Normal" Retirement Age

According to a study released by TIAA-CREF Institute, 65% of tenured, senior faculty members plan to put off retirement for various reasons. The report—"Understanding the Faculty Retirement (Non)Decision: Results from the Faculty Career and Retirement Survey"—investigated the dynamics of the faculty retirement decision and why many appear reluctant to retire at a traditional age, and it found that, in addition to the 35% of "traditional retirees," 16% of faculty said they would prefer to retire by the "normal" retirement age of 67, but expect to work longer ("reluctantly reluctant"), while 49% want to work longer ("reluctant by choice"). In addition, the report found that female faculty members are more likely than their male colleagues to expect to retire by normal retirement age.

TIAA-CREF Institute senior economist Paul J. Yakoboski, who authored the report, indicated that universities should engage faculty both on the financial and psychosocial aspects of retirement. A systematic evaluation of personal finances in the context of an individual’s retirement readiness can address the financial aspects, while a thorough evaluation of how an individual could spend his or her time if retired can address the psychosocial aspects. Such exercises would allow senior faculty to make fully informed decisions regarding whether and when to retire.

Source: TIAA-CREF Institute Press Release (June 11, 2015)

Additional sources: Iowa City Press-Citizen "Colleges face growing costs from 'reluctant retirees'" (July 25, 2015)

Malaysia: Research Finds Older Workers are Competent, Performing Well and Are Trainable

In an article published in Employee Relations, Junaidah Hashim and Saodah Wok, both from the International Islamic University Malaysia, report on their investigation of the competence, performance and trainability of older workers of higher educational institutions in Malaysia. According to "Competence, Performance and Trainability of Older Workers of Higher Educational Institutions in Malaysia," based on the assessments made by the older workers themselves and their superiors, older workers are competent, performing well and are trainable. However, the administrative older staff were rated lower by the superior as compared to the academic older staff.

The authors suggest that "the study provides valuable insights into considering of revising the retirement age of academician in higher education sector even higher. Age seems to be an advantage to this group of employees."

Source: Employee Relations Journal Abstract (2013)

United Kingdom: Cambridge Academics Approve Age 67 Mandatory Retirement

Cambridge University has introduced a compulsory retirement age of 67 for its academics to promote "intergenerational fairness" and enable career progression, according to press reports. Cambridge conducted the vote in response to the United Kingdom's abolition of the default retirement age, but it applies only to academic employees.

In voting for an "employer justified retirement age" (EJRA), the academics have decided that, upon reaching 67, they must either take their pension or reapply to stay at the University. Claire Churchard, writing in People Management, quotes Indi Seehra, HR director at the university as saying:

Introducing the EJRA for academics will support intergenerational fairness. It will allow our academics to progress through the promotional stages in the course of their career and help to create a balanced distribution of ages.

...

In an environment where innovation is needed, you need new people to come in to the cohort to create innovation. But you need the capacity to allow them in, and if you haven’t got people leaving then that will be a restriction on the capacity for new people.

Sources: People Management "Cambridge academics approve compulsory retirement age" (May 3, 2012); The Cambridge Student "Analysis: Should Cambridge dons be made to retire at 67?" (April 26, 2012)

Study: Preparing Academia for an Aging Workforce

The University of Iowa Center on Aging and the TIAA-CREF Institute have issued a report calling on academic institutions to start making a more concerted effort to engage with and support aging employees as they continue to work well past the traditional retirement age. According to "Promoting Workplace Longevity and Desirable Retirement Pathways within Academic Institutions," less than 5% of the 187 academic institution HR officials surveyed identified issues pertaining to aging faculty and staff as a top institutional priority, even though financial obligations to these employees constitute the largest growing part of university budgets.

Brian Kaskie, Ph.D., the lead author and associate professor of health management and policy in the College of Public Health and associate director for the Center on Aging, said that "[b]etween 2000 and 2010 the proportion of all professors 65 and older nearly doubled, and the aging professorate now outpaces all other white collar professions." Thus, "[t]he lack of attention being directed to the challenges and opportunities presented by the aging academic workforce is alarming."

According to the Executive Summary:

There was little correlation among programs and retirement pathway offerings. Institutions that rated highly on wellness programs or retirement counseling services did not always offer a variety of retirement pathways. Instead, most universities and colleges appeared to pursue a piecemeal approach toward accommodating and transitioning aging employees; their efforts more often were developed in response to an immediate demand rather than in pursuit of a strategic plan.

Among the report's recommendations for making more aging-friendly academic institutions are that (1) institutions should address attitudes about the aging workforce and identify offerings in wellness programming, counseling services, workplace accommodations and retirement pathways, and (2) focusing on the development of programs that promote workplace longevity and provide employees with information that aids their decision-making about retirement will go a long way toward maintaining healthy and engaged employees who pursue a more predictable retirement pathway.

Source: University of Iowa Iowa Now (March 21, 2012)

South Korea: Report Warns of Aging Teaching Workforce

According to an article by Lee Ji-yoon in The Korea Herald, the Korean Educational Development Institute has issued a report, warning that South Korea's teaching workforce was getting older. Specifically, in 2010, the average ages of teachers at kindergartens, elementary, middle and high schools were 31.8, 39.7, 41.3 and 41.5, respectively, reflecting increases since 2000 of 2.5 years, 0.8 years, 2.9 years and 1.7 years, respectively.

“Given that the aging teaching workforce is becoming a universal problem found in OECD member states, the Korean government needs to take follow-up measures to fill the potential teacher shortages,” the report said.

Universities have seen the largest change in older workers, with the percentage of teachers over 50 increasing from 29.5% ten years ago to 45.3% in 2010. For other teaching levels, those in their 50's and 60's increased from 19.8% to 21% in elementary schools, from 13.9% to 21% in middle schools, and from 14.4% to 22.9% for high schools.

Source: The Korea Herald "Report warns against aging teaching workforce" (February 25, 2011)

New Zealand: Universities Confronting Aging Academic Workforce

Universities New Zealand - Te Pōkai Tara (Universities NZ) has released a report prepared for it by Business and Economic Research Limited (BERL) showing that the universities are facing a shortage of academic staff over the next ten years due to an aging academic workforce and other factors. In addition, the report--"Academic Workforce Planning - Towards 2020"--notes that, coupled with lower funding relative to countries like Australia, the aging workforce is a threat to the future quality of university education and research in New Zealand.

Among other things, the report found that 43% of the academic workforce is over 50 and 15% is over 60, that the number of older academic staff is growing and the inflow of younger academics is not keeping pace, and that the academic workforce is aging like other professions but is an older workforce to begin with. Since an aging academic workforce is a global trend and the academic workforce operates within a global labour market that is becoming increasingly competitive, New Zealand universities must work together with the government and private sector on ways universities can recruit sufficient academic staff of international calibre from at home and abroad.

Source: Universities New Zealand Media Release (January 31, 2011)