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)

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)

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)

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)

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)

Italy Debating Changes to Law Raising Retirement Age

According to published reports, Italy is considering scaling back the "Fornero" law which set raises in Italy's retirement age. Specifically, political parties are promising to lower the state pension age, and the Italian Senate voted to exclude workers in certain sectors from planned rises in retirement age, which reaches 67 years in 2019. "The measure would exclude 10% of employees due to retire in 2019, including 14,600 workers in 15 different sectors such as nurses, teachers and employees of the building sector."

Source: Investments & Pensions Europe "Italy considers unwinding ‘Fornero’ law’s state pension age rise" (December 4, 2017)

OECD Encourages Poland To Promote Longer Working Lives as Vital to Improving Poland’s Future Prosperity

According to the latest OECD report on aging societies, while the percentage of old to younger groups is projected to nearly triple from 22% in 2012 to 63% in 2050 in Poland, the proportion of older people in Poland who are working still remains well below the average for OECD countries. Thus, the OECD concludes in "Working Better with Age in Poland" that "further reforms to encourage active aging and longer working lives are needed in Poland. Employers need to do more to improve working conditions for older workers and reduce the large gender gap in employment.”

The OECD found that, in 2013, the employment rate of 55-64 year olds was 41%, compared with the OECD average of 55%, and it was only 9% for the age group 65-69, compared with the OECD average of nearly 20%. Among its recommendations, the OECD says Poland should:

• Help more women stay longer in the labour market. Further development of care facilities is required to help older women combine work with family responsibilities. Women’s labour market conditions and future pensions should be reformed.
• Concentrate on preventive measures in occupational health services. Local health services should also have prevention and early identification of health risks as priorities.
• Make social dialogue a driving force in the design and implementation of policies to prolong working lives, for example, through projects in the “Solidarity Across Generations” programme, which was renewed in 2013.
• Align employment protection legislation (EPL) across all age groups by abolishing the special protection rules for older workers. This should however be combined with reinforced active labour market measures for older jobseekers to facilitate their quick reintegration into employment.

Source: OECD Press Release (March 27, 2015)

Singapore: Budget Announcement Includes Increased Subsidies to, and Payments by, Employers for Older Workers

According the Ministry of Manpower, the Budget Statement delivered by Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam, contains two measures related to the hiring of older workers. First, starting January 2016, there will be an increase in the Central Provident Fund (CPF) salary ceiling and an increase in CPF contribution rates for older worker, with an additional 1% Extra Interest on the first $30,000 of CPF balances from the age of 55 also being introduced. See "Factsheet on CPF changes to help Singaporeans save more for retirement."

Second, support will be provided to businesses as they continue to restructure. The Temporary Employment Credit (TEC) will be raised to 1% of wages in 2015, or an additional 0.5 percentage points on top of the original TEC. The TEC will also be extended by 2 years, to help employers adjust to cost increases associated with the increase in CPF salary ceiling and the employer CPF contribution rates for older workers. In addition, employers who re-employ older workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages through the Special Employment Credit (SEC). The SEC enhancement would help manage employers’ overall costs and encourage employers to voluntarily re-employ older workers aged 65 and above. See "Factsheet on the Extension and Enhancement of the TEC and Enhancement of the SEC."

Source: Ministry of Manpower MOM Announcements in Budget Statement 2015 (February 23, 2015)

In the Press: The Straits Times "Older staff may have to forgo pay rise for more retirement savings" (February 27, 2015); "Tight labour market means firms need older workers despite cost hike" (February 27, 2015)

Singapore: Seniors Group Calls for Legislation Raising Re-Hiring Age to 67

According to news reports, the PAP Seniors Group (PAP.SG)—the seniors advocacy arm of the People's Action Party (PAP)—has submitted a position paper to Singapore's Ministry of Manpower, calling for legislation to increase the rehiring age for older workers from 65 to 67.

PAP.SG believes that while past legislative changes in the employment of older workers, coupled with the government grants and incentives, have helped older workers aged 55 to 64 years, he Government's plan to roll out incentives next year to coax more employers to raise the reemployement age to 67 is unlikely to be as effective as making it the law, especially in non-unionized sectors, where most workers are employed.

Sources: AsiaOne "PAP.SG calls for legislation to raise rehiring age for older workers" (November 18, 2014); Straits Times "Make it a law for firms to lift re-employment age from 65 to 67: PAP Seniors Group" (November 18, 2014)

Switzerland: OECD Reports Calls for Greater Efforts To Help Older Workers Stay at Work

The OECD has issued a report finding that Switzerland should do more to help older people, especially women, work longer in order to meet the challenge of a rapidly aging population. According to "Working Better with Age in Switzerland," while Switzerland has one of the highest employment rates for older workers in the OECD (in 2012, 70.5% of Swiss aged 55-64 were in work), the rate is much lower for women (61.5%), particularly if they are non-graduates (49%). In addition, the report notes that, once older workers lose their jobs, it is often difficult for them to get back into the labor market: 59% of unemployed Swiss workers aged over 55 had been out of work for more than 12 months in 2012, up from 40% a decade ago and above the OECD average of 47%.

Accordingly, the OECD recommends that Switzerland (in order of priority):

• help women by promoting their employability, make it easier for them to balance work and family life throughout their careers and remove work disincentives in the tax system and the pension system;
• make training more attractive for low-skilled workers and encourage enterprises to keep training them until the end of their careers;
• encourage social partners and pension funds to reduce incentives for early retirement in their second pillar schemes;
• support the action of the Public Employment Service in helping older workers, particularly aged 60-64, find stable jobs;
• improve the targeting of social assistance budgets for the older unemployed to help them back into work;
• encourage social partners to link pay more to experience and performance than age;and
• combat age discrimination (which remains legal in Switzerland, and is quite common.

Source: OECD News Release (October 23, 2014)

United Kingdom: Government Appoints Business Champion for Older Workers

Dr. Ros Altmann CBE has been appointed by the United Kingdom government as its new Business Champion for Older Workers. A former director-general of Saga and independent expert on later life issues, Dr. Altmann is tasked with making the case for older workers within the business community and challenging outdated perceptions. Her appointment follows the government’s publication of "Fuller Working Lives – A Framework For Action," which set out the benefits to individuals, business and the economy as a whole of people aged over 50 staying in work.

In making the appointment, Minister of Work and Pensions Steve Webb MP, said that he "wanted a powerful voice; someone respected amongst the business community, with a track record of speaking up for consumer rights without fear or favour. In Dr Ros Altmann that’s exactly what we have." Dr. Altmann said:

I am really proud to be taking on this new role and look forward to championing over 50s in the workplace. This fast-growing section of society has so much experience and talent to offer and could play a vital role in future growth. Everyone can benefit from ensuring their skills do not go to waste. I also look forward to challenging some of the outdated and downright inaccurate perceptions of later life workers who still have so much to offer.

Source: United Kingdom Department of Work and Pensions Press Release (July 14, 2014)

Singapore: Government Announces Plan for Incentives to Employers Implementing Flexible Work for Mature Workers

At a speech on "Effective Workplaces: Creating a Flexible, Inclusive, Safe and Healthy Workplace" delivered at the Age Management Seminar, Dr. Amy Khor, Senior Minister of State for Health and Manpower, announced several enhancements that the Singapore Government was going to make to WorkPro to help employers better manage mature workers, especially with respect to flexible work arrangements (FWAs). The most significant enhancement is to:

provide employers with a $10,000 incentive to pilot new FWAs, and an additional $10,000 to support them in implementing the FWAs company-wide. With the enhancement, employers can receive a total funding of $40,000 for implementing FWAs, including the reimbursement of expenses incurred during the pilot and company-wide implementation.

In addition, expanding on the $40,000 a year employers can currently receive if they have 30% of their workers using FWAs, there will also be a cash incentive of up to $25,000 a year for employers who have 20% of workers benefitting from FWAs.

Khor also announced that the goverment would introduce a Workplace Health Promotion (WHP) Facilitator’s course, to help arm employers with the necessary knowledge and tools to plan, design and evaluate workplace health programs for their workers. "This will ensure that all employers who tap on the Age Management Grant have the capability to actively promote healthy living among their employees, especially the older ones."

In order "for companies to understand the value that mature workers bring to their business, and adopt a nondiscriminatory mindset when it comes to hiring and managing workers," Khor said that the Tripartite Committee on Employability of Older Workers is launching an advertising campaign—entitled "Tap into a Wealth of Experience"—to highlight the value and experience that mature workers can bring to the workplace.

Sources: Ministry of Manpower Speeches (June 18, 2014); The Straits Times "$10,000 grant for bosses who try flexi-work schemes" (June 19, 2014)

United Kingdom: Pension Minister Launches Action Plan To Help Older Workers Stay in the Workplace

The United Kingdom's Department for Work and Pensions and Pensions Minister Steve Webb has announced that the government will launch of a new action plan to support the economy, workers, and businesses, but stressed that British business must realize the potential of older workers and help people to stay in the workplace. Detailed in "Fuller Working Lives—a framework for action," the new measures include:

• extending the right to request flexible working to all employees in June 2014;
  
• the appointment of a new Older Workers’ Employment Champion—a respected and independent-minded figure who will advocate the case for older workers within the business community and wider society; and
  
• the launch of a new Health and Work Service which will give workers with long-term health problems the support they need to stay in or return to work.

According to the announcement, while the employment rate for 55 to 64 year olds is around 60% and growing, the recent improvement has been relatively modest compared to many other nations, and several countries achieve employment rates of around 70% or above. Among other things, Webb said:

• "Older workers have a huge amount to bring to any workforce and are a vast untapped talent."
  
• "We are living longer and can expect many more years of healthy life. It’s great news – but it’s something that as a society and as an economy we need to respond to."
  
• 'As part of building a fairer society, I am determined that we boost our support for older workers and help employers challenge outdated perceptions to see the real strengths of this important section of the workforce."
  

Source: Department for Work and Pensions and Steve Webb MP Press Release (June 13, 2014)

Other Sources: Daily Mail "Flexible hours push to help the over-50s stay in work: Pensions Minister says older generation are 'vast untapped talent'" (June 13, 2014)

Sweden: Looking at Retirement Age and Proposals to Strengthening Labor Participation by Older Workers

SeniorPolittik.no is running a series of articles on Sweden and retirement. According to the lead story, even though, under Swedish law, an individual has no right to remain in employment after age 67, and Swedes have the right to withdraw retirement pension as early as age 61, among both employers and employees it is a deeply rooted belief that the earlier retirement age of 65, the normal retirement age.

Swedes work longer than workers in many other countries, such as Denmark and Finland. However, labor force participation among Swedes aged 65 and older is generally not as high as in for example Norway. Labour force participation among older Swedish women, however, higher than in Norway. Nevertheless, politicians are worried and stressing among other things, that Norway has been more successful in changing attitudes away from a fixed retirement age.

Drawing on a report prepared for the Swedish parliament earlier in 2014, it is apparent that negative attitudes towards older workers is common. The report notes that Norway's creation of a center for senior policy is a cause of the attitudes in Norway being less negative, and it concluded that it is not enough just to raise the retirement age to change the perception of older workers. Information and knowledge are also needed.

While the Swedish report notes that "everyone can not work indefinitely, but many are able to work with and much longer than is the case now," there are proposals to raise the statutory right to continue in employment to 69. In addition, a year ago, proposals were submitted o the government to raise the age for the earliest opportunity to receive a pension from the government gradually from 61 years, on the grounds that life expectancy is projected to increase.

Sources: SeniorPolittik.no, Retirement Age in Sweden: "Mener Norge har lyktes bedre" [Believe Norway has succeeded better], "Fant sin egen vei videre" [Found their own way forward], "Bør være en menneskerett å få arbeide" [Should be a human right to work] (June 2014);

Israel: Government Drafting Proposal to Encourage Delayed Retirements

According to an article in Haaretz, the Israeli government is drafting a plan to encourage people to work past retirement age. As reported by Meirav Arlosoroff, the plan drafted by the Pensioner Affairs Ministry—led by minister Uri Orbach and ministry director general Gilad Semama—together with the National Economic Council in the Prime Minister’s Office would cost NIS 240 million ($69 million) a year, and would be funded by dropping the current pension increases offered to people who keep working beyond retirement age.

The number of retirement-age Israelis is set to reach nearly 15% by 2030, from 10% today, meaning the national expenditure on the elderly is likely to grow from the current 10.2% of GDP to nearly 12%, an increase of 16 billion shekels.

Surveys have shown that most people approaching pension age would like to continue working, but face barriers including discrimination, outdated skills and above all a taxation and state pension policy that serves as a strong disincentive.

In Israel, the retirement age is 62 for women and 67 for men. Currently, taxation and pension policies that essentially work out to a 97% income tax on some retirees who continue to work past retirement age, although those taxes are greatly reduced if someone works past 70. The proposal would cut the taxes and penalties for working to 44%-67% of the person’s salary.

In a follow-up article, Arlosoroff reports on a survey conducted by the business data firm BDI Coface for TheMarker, which revealed that only one in five workers hired by the 100 largest companies was over 45—revealing a picture of blatant discrimination based on pure prejudice:

Older job seekers are less likely than their younger peers to be hired, despite being perceived as more stable, experienced and capable of working longer hours because they don’t have small children at home.

These results echo findings of a survey conducted for the Equal Employment Opportunity Commission by the Economy Ministry’s research division, which found that the hiring rate for employees aged 45 and up is just 1.3%, even though this group accounts for 38% of Israel’s labor force.

Source: Haaretz "Plan would reduce tax, pension penalties for working past retirement" (May 27, 2014); Haaretz "No country for old workers" (May 30, 2014)

Netherlands: OECD Report Calls for Greater Efforts Encouraging More People To Work Later in Life

The Netherlands must encourage more people to work later in life in order to help it meet its growing challenges of a rapidly aging population and rising social spending, according to the OECD. In its report "Ageing and Employment Policies: Netherlands 2014: Working Better with Age," the OECD says that while reforms over the past decade, such as raising the pension age, have already had an impact—so that the share of 55-64 year olds in work has increased significantly to just over 60% in 2013 (above the OECD average of 55%)—the Netherlands remains well behind the best OECD achievers, ranking only 16th for the employment rate of 55-64 year olds among the 34 OECD countries.

Among its recommendations, the OECD says the Netherlands should:

• promote longer contribution periods in second-pillar pension schemes and increase flexibility in withdrawal and combinations of pension and work to encourage longer careers;
  
• reduce the maximum duration of unemployment insurance benefits combined with better activation of all unemployment benefit recipients;
  
• keep replacement rates (the ratio of benefits to former earnings) of sickness and disability benefit well below 100%, and give access to wage-compensation already in the sickness benefit period for re-entry to new jobs with a lower wage;
  
• ensure that new practices among innovative firms in the Sustainable Employability program are promoted and progressively become national standards;
  
• mobilize more fully labor resources by supporting initiatives to facilitate working on a full-time basis for part-time workers.

Source: OECD News Release (April 16, 2014)

Update: Ministry of Social Affairs and Employment of the Netherlands Press Release (April 16, 2014)

Research: Governments Need To Restructure Deferred Retirement Plans To Encourage Retention of Employees

A University of Missouri researcher concluded has that states may need to restructure deferred retirement incentives to encourage more employees to remain on the job longer and minimize the disruption to government operations. Using, as a case study, the state of Missouri’s Deferred Retirement Option Provision (BackDROP), Angela Curl, assistant professor in the University of Missouri School of Social Work, looked at how the large numbers of possible retirees—in Missouri, more than 25% of all active state employees will be eligible to retire by 2016—threaten the continuity, membership and institutional histories of the state government workforce.

Curl said that a good system of employee retention is inclusive, flexible and accounts for the wide range of circumstances that retirement-eligible employees may consider when deciding to defer retirement. These circumstances could include caregiving for older parents or having a spouse who is retired. In Missouri, BackDROP offers a one-time payment equaling 90 percent of what employees would have received in benefits for an additional five years of service as incentive to delay retirement.

Curl said that “[e]mployers need to ask if their organizations are designed to promote turnover or promote retention. . . . States should recognize the benefits of promoting retention. Using delayed retirement incentives to encourage retention is important, particularly when dealing with older employees.”

A paper—“A case study of Missouri’s deferred retirement incentive for state employees”—co-authored by Kirsten Havig, will appear in the Journal of Aging and Social Policy`. Among other things, the study also found that social demographics such as race, sex, level of education and marital status did not play a significant role in an employee’s decision to defer retirement.

Sources: University of Missouri News Release (April 3, 2014); Columbia Business Times "MU researcher examines options for aging workforce" (April 8, 2014)

Northern Ireland: Commissioner for Older People Urges Government and Employers To Increase Older Workers Participation in the Workforce

The Commissioner for Older People for Northern Ireland has released a report that shows that the economy in Northern Ireland could be increased by £2.3billion by 2037 if the number of older people in the workforce increases. According to "Valuing an Ageing Workforce," which was produced in conjunction with the International Longevity Centre-UK, the government and employers should introduce ways to enable older people to remain in the workforce for as long as they wish to. The Commissioner, Claire Keatinge, says:

"This shows that older workers can be more effective than their younger colleagues and make a positive contribution in the workplace, despite widely held misconceptions that somehow productivity and output diminish with age.

"Many people will want to stay in work, for a variety of reasons, such as the removal of the previous Default Retirement Age, increase in life expectancy, and for personal fulfillment; and some will stay in work because they need to for financial reasons.

"It is essential that appropriate supports are put in place so as to enable older workers to continue to be able to play a positive role in the workforce."

Among the findings reported by the Commissioner and highlighted in a briefing note to the report are:

1. Employers would benefit from valuing the positive role that older people play in the workplace.
2. Employment rates for older people in Northern Ireland have increased since the financial crisis in 2008 and there is a strong economic case for working beyond 65.
3. There are still a range of barriers which prevent people working longer, including ageist attitudes, health, caring responsibilities, skills and training opportunities, as well as the fact that ‘cliff-edge’ retirement is still a common occurrence here.
4. Initiatives should be introduced by the Northern Ireland
   Executive and employers to support people to work longer, should they wish to do so.
5. Older people in Northern Ireland should have the right to remain in work as well as the right to retire, and they should be supported in either scenario.
   

Source: Commissioner for Older People for Northern Ireland News Release (March 25, 2014)

United Kingdom: Study Calls for Upping Retirement Age, Saying Pension System Creates Incentives for Early Retirement

A report issued by the Institute of Economic Affairs says that recent United Kingdom government commitments to continue to increase state pension expenditure in real terms are both unaffordable and irresponsible, and that the government must accelerate the introduction of a later retirement age and urgently reform labor market regulations to enable people to work longer.

According to "Income from Work—The Fourth Pillar of Income Provision in Old Age" by Gabriel Sahlgren, the current state pension system is "incentivising" early retirement, and that employment protection legislation raises unemployment at older ages, including before state pension age. Furthermore, later retirement benefits the individual through improved health and higher incomes, and benefits taxpayers by reducing the costs of ageing populations.

The report makes ten recommendations to "ease the state pension time bomb," including:

• accelerating the rise in retirement age, suggesting that, from November 2018, the state pension age for men and women should increase by two months every quarter, which would get the pension age to 68 by January 2023;
  
• linking retirement with life expectancy from January 2023;
  
• exempting older workers from employment protection legislation, which would encourage employers to take on older workers and also enable greater labor mobility and flexible working patterns; and
  
• introducing a pilot scheme to exempt older workers from age discrimination laws.

Source: Institute of Economic Affairs Press Release (January 8, 2014)

Reaction: "Actuaries Buck Consultants have disagreed with the ‘dramatic’ rise in state pension age proposed by the Institute of Economic Affairs, saying changes must be balanced to protect those close to retirement." See The Actuary (January 14, 2014)

Connecticut: Legislative Panel Issues Report on Reemployment Challenges of Older Workers

The Connecticut General Assembly's Office of Program Review and Investigations has issued its finding from its study of the challenges facing older unemployed workers (ages 50 and older), including the competing demands to have an income while completing needed job-related training. According to the "Staff Findings and Recommendations Highlights," there are many programs and services to assist with the reemployment of unemployed workers, including older workers, but that only a few programs are specifically for older adults. Accordingly, "there is no comprehensive, easily accessible way for unemployed residents to find out about these resources." Looking at existing programs overall, programs with an on-the-job-training component had a higher reemployment rate of 74% compared with 50% for programs without the component.

The report made several recommendations, including:

• Prohibit potential employers from publishing job vacancy advertisements that discriminate against the long-term unemployed.
• Develop summary sheets and informational campaigns to inform job seekers of the resources available, address misperceptions about the state's apprenticeship program, and publicize the advantages of hiring older workers.
• The CTWorks Career Centers should consider requirement of a professional resume writer credential and expansion of online learning.

In addition to the report highlights, the full report, as well as an executive summary, are available online. The report has been welcomed by the House Chair of the Program Review and Investigations Committee. Source: Office of Program Review and Investigations Studies: Reemployment of Older Workers (December 18, 2013)