United Kingdom: Industry by Industry Reports on Tackling Age Discrimination and Promoting Age Diversity in Employment

The Age Partnership Group has issued research that encourages employers to tackle age discrimination practices and recognise the benefits of older workers. Each of nine industry sector-specific reports look at the challenges faced by the sector relating to the recruitment, training and retention of older workers.

Specifically, the nine sector research reports include Business services, Construction, Education, Health and Social Care, Hospitality, Manufacturing, Retail, Transport and Logistics, and Other community (media, sport, public services, the arts).

The research found that eight sectors use length of experience to fix starting salaries or as a criterion in selection for recruitment and retention; seven sectors use age or length of service as the basis for redundancy decisions; five sectors provide age information on candidates to short-listing and interviewing staff; four sectors set maximum or contractual retirement ages and for two of these sectors the contractual retirement age is often below 65.

The reports also examine what employers are doing to remove compulsory retirement ages and adopt flexible approaches, as set out in the Pensions White Paper, as well as looking at how the age legislation affects young people in the workforce.

Source: Age Positive News Release (August 10, 2006)

Conferernce Board Study Shows More Companies Turn to Strategic Workforce Planning

The Conference Board has issued a study showing that an aging workforce and an emerging "baby boom" retirement wave are driving more companies toward "strategic workforce planning," which involves analyzing and forecasting the talent that companies need to execute their business strategy. "Strategic workforce planning is aimed at helping companies make sure they have the right people in the right place at the right time and at the right price."

The study--Strategic Workforce Planning: Forecasting Human Capital Needs to Execute Business Strategy--reports that these other forces are driving strategic workforce planning: current movement and projected labor shortages; globalization; the growing use of contingent, flexible workers; the need to leverage human capital to enhance return; mergers and acquisitions; and the evolution of workplace technology and tools. The study includes detailed case studies of nine organizations.

Source: Conference Board Press Release (August 7, 2006)

Malaysia: Workers Choosing To Delay Retirement

According to an article by Chan Ching Thut in The Star, "more Malaysians are planning to retire later than at age 55, with the main reasons cited for the delay being higher pay while working, enhanced retirement benefits, and new and challenging responsibilities." This is the result of a pulse survey conducted in May 2006 by Accenture.

Accenture partner and human performance senior executive Joan Hoi said "One-third of Malaysian workers interviewed have changed their plans for retirement within the past five years."

Separately, Hoi noted that a significant finding from their Aging Workforce survey was on the management of the knowledge assets of a company: Globally, one quarter of employers surveyed revealed that their organisations would allow older workers to retire without any transfer of knowledge, and in Malaysia, 48% cited “small, informal discussions” or “1 to 2 weeks' process” as the methods used by organisations before employees retire, while 15% said their organisations would let them go without any transfer of knowledge.

Source: The Star "More Malaysians choose to delay retirement" (August 7, 2006)

Scotland: Government Grants Aim To Bring Older Workers Back into Learning

The Scottish Deputy Minister for Enterprise and Lifelong Learning Allan Wilson has announced that the Experience Counts initiative that aims to bring older workers back into learning will continue to benefit from Scottish Executive funding until 2008. The initiative provides tailored learning programmes for over-50s to raise confidence and allow learners to acquire new skills. "Through the programme, Sector Skills Councils (SSCs) collaborate with employers and learning institutions to provide 'bite size' or taster courses dependent on employer and worker needs."

"Experience Counts ensures that older workers can be competitive in the modern workplace. By combining older workers' wealth of professional experience with new knowledge and skills development we can further Scotland's commitment to a world-class professional environment."

The first phase was announced in March. In this second phase, four SSCs will operate across Scotland, receiving £224,000 to deliver a range of activities from enhancing the continuous professional development of staff in Scottish Colleges to the development of an older colleague mentoring programme in the transport sector.

Source: Scottish Executive News Release (August 7, 2006)

GAO Reviews Data on Retiring Boomers and Effects on Financial Assets Markets

As the first wave of baby boomers become eligible for retirement benefits, concerns have been raised about the possibility for boomers to sell off large amounts of financial assets in retirement, with relatively fewer younger U.S. workers available to purchase these assets. Analysis of this situation by the General Accountability Office (GAO)--presented in its report Retirement of Baby Boomers Is Unlikely to Precipitate Dramatic Decline in Market Returns, but Broader Risks Threaten Retirement Security (GAO-06-718)--suggests that retiring boomers are not likely to sell financial assets in such a way as to cause a sharp and sudden decline in financial asset prices.

However, due, in part, to the decline in traditional pensions that provide guaranteed retirement income and the rise in account-based defined contribution plans, the retirement security of boomers and others will likely depend more on individual savings and returns on such savings.

Source: General Acountability Office Highlights (July 28, 2006)

Career Advisers: Preparing To Work Past 65

Following up on the McKinsey survey showing that the average age of retirees was only 59 and a full 40% of retirees were forced to stop working earlier than they had planned, Virginia Galt writes in the >i>Globe and Mail that these results come as no surprise to career advisers. Thus, Barry Witkin, founder of Prime50, suggests that a "fair amount of age discrimination still exists, but it is couched in terms such as a person won't fit in or that they are overqualified or that they may be too expensive." Nevertheless, he believes that the demand for older workers will be picking up.

Witkin's basic advice to older workers is to stay current and to continue to develop their skills. Since there are there are far more boomers coming on stream compared to available employers who might hire them, he also recommends that older workers keep their résumés updated, review their career plans with a career counsellor or career-transition specialist, develop networking and search skills, stay informed, look after themselves--both stress=wise and health-wise, look current, assess their skills and accomplishments, and have a positive attitude.

Source: Globe and Mail "Thinking of working past 65? Think again" (August 5, 2006)

Norway: Small and Medium Businesses Open to Older Workers

According to a survey conducted by Bedriftsforbundet, a Norwegian interest group for small and medium businesses, shows that leaders of those businesses are slowly growing more positive about hiring staff over the age of 50, but plenty of skepticism towards older workers remains. As reported in the Aftenposten, the survey shows that as many as 30% admit that they would prefer to avoid hiring workers over 50, while around 55% said that they had no qualms about hiring senior staff--a slight increase over the past three years.

Bedriftforbundet's managing director Tom Bolstad suggests that the main reason many smaller companies hesitate to hire older staff is that they seek a younger profile and fear that older workers can mean lower working capacity. In addition, for companies with over 20 employees, their primary fear is that "seniors can mean expenses involved with earlier retirement pension."

Source: Aftenposten "Older workers more popular" (August 1, 2006)

Japan: Businesses Responding to Need for Older Workers

Writing for The Japan Times, Ryohei Takeda follows up on the legal revision on stabilizing elderly employment that took effect in Japan in April, making it obligatory for firms to keep workers on the payroll in stages until age 65. Specifcially, he writes that the Health, Labor and Welfare Ministry reports that about 96% of firms with more than 300 employees have already introduced measures to extend employment.

However, Takeda notes, "the bulk of them rehired employees aged 60 with pay cuts of 50 percent or more." On the other side, the ministry said that less than 7% of businesses have gone so far as to either raise the mandatory retirement age from 60 to 65 or abolish it.

Source: The Japan Times "Workforce gears up to take in growing number of seniors" (August 2, 2006)

Rhode Island: Unemployment Benefits and the Social Security Offset

A Providence Journal staff writer, Neil Downing, reports on the failure of Rhode Island to pass law changes (H7451
and S2902) to the offset of unemployment benefits by those receiving Social Security benefits and argues that one "shouldn't have to take a cut in unemployment benefits just because you also receive Social Security benefits. That's unjust. The rule should be scrapped."

A bill to end Rhode Island's Social Security offset was introduced in the General Assembly earlier this year--in the House by Rep. Thomas C. Slater, D-Providence, and in the Senate by Sen. Frank A. Ciccone III, D-Providence.

Neither measure passed. The House Labor Committee recommended that the proposal be held for further study.

Source: The Providence Journal MoneyLine by Neil Downing: Workers' penalty (July 30, 2006)

Flexibile Work Schedules Urged on Employers by Older Workers

Despite The conventional wisdom that working moms l lead the push to make employers more flexible, Cindy Krischer Goodman, writing for the Mcclatchy Newspapers, reports that studies are showing it is another demographic altogether--older workers--that is getting companies to create job shares, pairing older workers with young moms, restructure jobs, and adapt pension policies to allow older workers to stay on part time or as consultants.

For example, Goodman reports that Miami's Baptist Health South Florida is responding to a nursing shortage by sending out about invitations to retired nurses to return to their former jobs, even in a scaled-back capacity. Even where there are no shortages, such as for lawyers, law firms are encouraging older lawyers to remain as of counsel--a flexible arrangement that allows them to work on a few cases from home or the office, since, as one firm says, "there is a shortage of people who are experienced and have a depth of knowledge in a specialized area."

Source: The Boston Globe "Old pros are leading the charge for flexible schedules" (July 30, 2006)

Cures for Corporate Amnesia in the Oil Industry

Writing in the July 2006 issue of Practicing Oil Analysis magazine, Jason Kopschinshy, Noria Corporation, offers the oil and gas industry some suggestions for handling the “corporate amnesia”--the crunch of heuristics (discovery achieved by trial and error) gone missing--that companies will eventually feel as baby boomers retire. The industry may be one of the hardest hit, as the Oil and Gas Journal suggests that, by the year 2010, as many as 60% of experienced managers will retire from the industry.

For those seeking to ensure that production equipment is as streamlined and effective as possible, Kopschinshy suggests that procedure-based maintenance should become "a strategic and tangible method of collecting data on current maintenance, production and operating methods, analyzing the information and improving on it through technology, heuristics and proven techniques, then documenting the information in a user database." If knowledge management is not made a priority: "If we do not periodically update maintenance procedures to reflect changes in technology - machine configuration, equipment age, and changes in economic penalty of failure or machine criticality - they too will become useless over time."

Source: Practing Oil Analysis "The Real Cost of Corporate Amnesia" (July 2006)

Related articles: "Oil and Gas Industry Being Hit by Aging Workforce"; "Oil and Gas Industry: Seeking Solutions to Aging Workforce"

Canada: Conference Board Report on Aging Workforce and Employers

The Conference Board of Canada has issued an executive action report finding that almost 80% of Canadian organizations believe they will face the consequences of an aging workforce within the next five years, but few are taking steps now to address impending retirement-induced labour shortages. Although one source of labour is older workers, the report--"Too Few People, Too Little Time: The Employer Challenge of an Aging Workforce" [free registration required]--found that recruitment and retention programs and policies targeted at mature workers are applied inconsistently.

“Canadian organizations are aware that by 2015 there will not be enough qualified people to go around. For the most part, they are doing little to tackle the problem,” said Owen Parker, Senior Research Associate. “Employers will have to develop more effective ways of managing their aging workforce to maintain operational continuity.”

Half the respondents indicated that their organizations devote little or no effort to retaining their own older workers, and few employers are looking to attract retirees who may be looking for new employment possibilities.

Source: The Conference Board of Canada News Release 07-10 (July 27, 2006)

Canada: Survey Finds Older Canadians Working More

Statistics Canada has released a report--General Social Survey on Time Use, Cycle 19: Aging Well: Time Use Patterns of Older Canadians--finding that more individuals aged 55 to 64 were working later in life and spending less time in leisure activities in 2005. In fact, both men and women were spending roughly an hour a day more in paid work than they were in 1998.

Older Canadians--those aged 65 to 74--devoted much less time to paid work than they did when they were 55 to 64, with men devoting about an hour a day on average to paid work, well below the 4.4 hours for the age group 55 to 64. The survey showed that time use patterns within this age group did not change substantially between 1992 and 2005, with only a small increase in the amount of paid work.

Source: Statistics Canada The Daily (July 28, 2006)

Other remarks: Ottowa Sun (July 27, 2006); Canadian HR Reporter (July 28, 2006)

Taiwan: Panel Recommends Labor Participation Rate of Older Workers

As part of its broad vision of development for Taiwan's industries through 2015 in order to raise their competitiveness and guide them to increase their level of domestic investment, the Panel on Enhancing Industrial Competitiveness has reached broad consensuses on three issues that are critical to economic investment, including the labor market and human resources. As part of this, the Panel has concluded:

The rate of employment of the middle-aged and elderly should be increased and the phenomenon of premature withdrawal from the labor market should be rectified. Barriers to employment for the middle-aged and elderly should be eliminated, systems currently in place concerning retirement be amended, and the minimum retirement age be raised.

Source: Panel on Enhancing Industrial Competitiveness Key Conclusions of the Conference on Sustaining Taiwan's Economic Development (July 27, 2006)

Europe: Aging Population Putting Pressure on Pensions, Governments

Verionka Oleksyn, writing for the Associated Press, reports Austria's social affairs minister as warning that by 2010--just four years from now--there will be more 55- to 64-year-olds than 15- to 24-year-olds in the European Union. Coupled with a falling birth rate, European lawmakers are struggling with "how to financially shoulder the burden of an aging society while staying competitive globally and finding workable incentives for people to have more babies."

According to a recent EU report, the bloc's working age population is projected to fall by 48 million, or 16 percent, between 2010 and 2050, while the number of seniors is expected to rise sharply by 58 million, or 77 percent.

Europe will go from having four people of working age for every senior citizen to a ratio of two to one by 2050, predicts the report by the Economic Policy Committee and the European Commission.

Oleksyn also writes that because general taxation is expected to come up short to pay for retirement benefits and healthcare, governments are looking into options such as mandatory retirement savings and insurance programs, or even spending less on the younger generation.

Source: Miami Herald "Aging Europe faces economic hurdle" (July 24, 2006)

UBS Financial Seeking Boomers as Financial Advisers

Richard Craver, writing for the Winston-Salem Journal reports that the Winston-Salem (NC) office of UBS Financial Services Inc. has been actively recruiting employees 50 and over for positions as financial advisers. Even though most of them have lacked professional financial-services skills before being trained by UBS, the manager of the UBS office thinks that it makes perfect sense to have a baby boomer sitting across the table to provide financial and wealth-management advice to a clients preparing for life after retirement.

Craver writes that "[a]nalysts said that UBS' strategy bucks the hiring strategy of many financial-services companies, where younger advisers are considered a cost-efficient means for assisting clients" and suggests that it "runs counter to the trend of financial officials considering their early- to mid-50s as prime retirement time rather than the time to start a new career." However, he quotes the manager as saying "we want advisers who have been through, or are dealing with, the same life experiences as our clients. . . . Those shared experiences, whether saving for retirement, paying for college or preparing to transfer wealth to the next generation, can build up a relationship, and ultimately trust, with a client."

Source: Winston-Salem Journal "AGING FORCE: UBS takes on older workers" (July 23, 2006)

Nursing Faculty Shortages Partly Attributable to Aging Workforce

The National League of Nursing has issued "Nurse Educators 2006: A Report of the Faculty Census Survey of RN and Graduate Programs" with research showing that the aging of the faculty population is one of three cirtical factors in the growing nurse faculty vacancies.

Nursing programs in the study "indicated that almost two thirds of all full-time nurse faculty members were 45 to 60 years old and likely to retire in the next five to 15 years. A mean of 1.4 full-time faculty left their positions in 2006; nearly one quarter of these were due to retirement."

Source: PrWeb Press Release (July 23, 2006)

Survey: Aging Workforce and Technology to Help Skills Gap

Knowledge Infusion has announced the preliminary results of a survey of 375 organizations on how they are positioned to react to the aging workforce, upcoming baby-boomer retirements, and looming shortage of skilled workers. Among other things, 74% of respondents indicate that the aging workforce will somewhat or greatly impact their organization’s ability to execute goals and strategy by 2010.

The survey also found that 50% of organizations indicate that retirements will cause a knowledge/skill gap, which many believe will lead to reduced capacity, lower quality of work, and increased expenses associated with attracting and retaining skilled workers. The top three operations in place to address the knowledge/skill gap are automating processes, formalizing succession planning programs, and mentoring programs.

“There is a clear need for organizations to understand the role technology can play in the management of their workforce in addressing upcoming retirements, knowledge transfer, and the shortage of skilled workers,” said Heidi Spirgi, President of Knowledge Infusion. “We see customers succeeding when they have a well developed and holistic plan for managing talent that is tied to technology.”

The full results will be released at a live webinar, sponsored by Cornerstone OnDemand, on July 26, 2006 at 2:00 Eastern.

Source: Knowledge Infusion Press Releases (July 20, 2006)

TVA: Case Study of Capturing Retirees' Knowledge

Fortune Magazine senior writer Anne Fisher writes about how one government agency--the Tennessee Valley Authority (TVA)--has found a better way to pass on critical know-how rather than letting workers take it out the door when they retire. According to Fisher, "TVA began several years ago to tackle a problem most big U.S. employers are only now beginning to ponder: an aging workforce that, within five years, will begin taking enormous amounts" of knowledge with them from the workplace.

Starting in 1999, the TVA broke down the daunting task of retaining knowledge into manageable parts, by asking line managers three questions:

• What knowledge is likely to be lost when particular employees leave? ("What?")
• What will be the business consequences of losing that knowledge? ("So what?")
• And what can be done to prevent or minimize the damage? ("Now what?")

Among other things, TVA asked and convinced employees to let them know about their retirement plans and then gave employees scores based on how soon that would occur, while plant managers scored the employees on how critical their knowledge was. That way it was easy to see where there was a need to take immediate action and get people to pass on knowledge.

Source: Fortune.com "How to plug your company's brain drain" (July 19, 2006)

Korea: Over-50 Workforce Becomes Largest Segment

According to Korea's National Statistical Office (NSO), the number of workers over 50 surpassed the working population of those in their 30's and 40's for the first time--the number of workers over 50 stands at about 6.5 million, or 27.7% of the workforce, as compared to 6.2 million, or 26.5%, in their 30's and 6.45 million, or 27.6%, in their 40's. Out of workers over 50, 3.89 million were in their 50s and 2.61 million were over 60.

Source: The Hankyoreh "People over 50 emerge as mainstream workforce" (July 18, 2006)

United Kingdom: Employers Remain Strongly Committed to Pensions

According to a major new survey published by the Confederation of British Industry (CBI) and Mercer Human Resource Consulting. UK companies remain committed to providing pensions for staff despite the continuing high costs. Specifically, while 57% of surveyed firms make defined beenfit (DB) pensions available to existing employees but only 16% do so for new staff, "the burgeoning level of contributions companies are making to [DB pensions] is having a significant impact on the money businesses have available to invest for the future and is hitting profits."

Firms with DB schemes continue to experience high levels of pensions costs, with the survey showing that, on average, firms with DB schemes are putting the equivalent of 19.6% of employees’ pay into schemes to fund future benefits and deficits. Nevertheless, this survey of 355 CEOs, chairmen and senior board members (employing 900,000 staff amongst them) reveals that over 86% of employers want to see staff reach retirement with adequate savings and 81% believe a company should play a part in raising understanding of the importance of planning for retirement.

Source: Confederation of British Industry Press Release (June 17, 2006)

Do Employers Want to Hire Older Workers?

Following the lead of a New Yorker cartoon, Robert Powell writes in MarketWatch that "work--for many Americans--is the new retirement plan." He cites the Center for Retirement Research at Boston College report to suggest, however, that some employers do not want older employees: "Specifically, small employers, those with 100 or fewer employees, and large employers, those with 1,000 or more employees, as well as "young" organizations are generally less fond of older workers be they white-collar or rank-and-file."

According to Bob Morison, executive vice president of The Concours Group, "older workers are, indeed, more satisfied with their jobs, better adjusted on the job, and more engaged in their work and with their employers than the young or midcareer cohorts are," but 4 in 10 employers say older workers are more expensive than someone younger. Morison suggests that employers could reduce the cost of hiring older workers if they focus on Medicare-eligible prospects:

"The cost picture changes dramatically for working retirees who have reached the Medicare eligibility age or who have already retired with health benefits covered," he said. "Providing a bit of supplemental coverage for workers in this category is much cheaper than providing more extensive benefits to younger employees. A smart company hires the other guy's well-benefited retirees."

Source: MarketWatch "Older workers win praise, but winning jobs is another matter" (July 14, 2006)

Survey: Employer Attitudes towards Older Workers

Older workers have reasonably good prospects for extending their working careers according to a new survey of employers by the Center for Retirement Research at Boston College. Employer Attitudes towards Older Workers: Survey Results, Issues in Brief No. 3, authored by Alicia H. Munnell (the Center's director), Steven A. Sass, and Mauricio Soto, reports that 80% of employers said older workers were “as attractive” or “more attractive” than younger employees.

While Munnell said “the survey results are encouraging given that many people nearing traditional retirement ages will need to work longer to ensure their retirement income security,” the survey results also raise two important cautions. First, older rank-and-file workers, who face the greatest retirement income challenge, appear to have weaker employment prospects than older white-collar workers. Second, other surveys have shown that positive evaluations of the productiv¬ity of older workers do not necessarily translate into actual employment opportunities.

Source: Center for Retirement Research at Boston College Press Release (July 11, 2006)

Veterinarians Hit by Aging Workforce

Mikel Alerman writes in CollegiateTimes that the Journal of the American Veterinary Medical Association has completed a comprehensive study on the current and future state of the large animal veterinary profession and found a gradual decline due to the fact that nearly half of the state and federal veterinarians are nearing or are eligible for retirement.

"According to [Virginia Tech Dean of Veterinary Medicine Grant H.] Turnwald, the gradual decline of professionals in this field is due to the changing demographics and decline in rural population. This combination has caused a disinterest and decreasing number of students in this field."

Source: Blacksburg (VA) Collegiate Times "Number Of Veterinarians Continues To Decline" (June 28, 2006)

Upstate NY Workforce Retirements Will Outpace Nation

The Federal Reserve Bank of New York in Buffalo, in a report "Baby-Boom Retirements and Emerging Labor Market Pressures," said some sectors of upstate New York's economy, especially education and health care, will experience labor shortages between now and 2012. According to Fed economist Richard Deitz, "[a]s retirements accelerate over the next several years, upstate New York may begin to face labor market pressures in an environment of little economic growth as it competes with other parts of the country for key workers in high-demand occupations."

In particular, employers seeking workers in services used by an aging population and provided through personal contact--including health care, community and social services, and personal care and service—are likely to face the most significant labor market challenges.

Source: Federal Reserve Bank of New York Upstate New York Regional Review (July 2006)

China: Encouraging Retirement?

According to China Daily, the weekly magazine Liaowang (Lookout) recently carried an article in which some scholars suggested that China should alleviate its social welfare financial burden by making more people retire at an earlier age. "However, some experts objected to this suggestion. In their opinion, in order to reduce the pressure adding on China's welfare system, the most important task should be getting rid of all those abnormal 'early retirement policies'. In some specific areas, the work units could set a time range for retirement age so that people could arrange their life in a better way."

The article also notes that Secretary-general of the Social Policy Research Center from the Chinese Academy of Social Sciences, and researcher from the Social Research Institute Tang Jun said that in China, aging problem is not as serious as in the West. Among other things, China has a large base number for labor resources--even in 2015-2020 when China's labor resources would reach its lowest point as some people predicted, there would still be 750 million working population available in China then.

Source: China Daily "More people encouraged to retire" (July 11, 2006)

Survey: U.S. Businesses Lose up to $33 Billion from Lost Productivity of Working Caregivers

According to a new study from MetLife Mature Market Institute®, the cost to U.S. business due to lost productivity of working caregivers is $17.1 billion to $33.6 billion per year. The MetLife Caregiving Costs Study: Productivity Losses to U.S. Business, produced in conjunction with the National Alliance for Caregiving, reports that the average caregiver costs an employer $2,110 per year. "For those caregivers providing the most intense levels of care, the cost per employee is $2,441, totaling $17.1 billion. The total annual cost for all caregivers is $33.6 billion."

Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute, notes that “[e]mployer costs related to caregiving are often hidden ones and can be significant. To stem the losses, employers should consider implementing eldercare programs for employees with a focus on individualized care planning and flexible work arrangements. It also helps when managers and supervisors are sensitive to caregivers’ needs; that sensitivity often leads to increased worker productivity.”

Included among the costs included by the survey are replacing employees , absenteeism , partial absenteeism, workday interruptions, eldercare crisis, supervisor time, and unpaid leave. Employers large and small who would like to calculate how much caregiving costs their business in lost productivity each year, can log onto a workplace productivity calculator prepared in conjunction with the study at: www.eldercarecalculator.org.

Source: MetLife Mature Market Institute® Press Release (July 11, 2006) [Word document, also available as HTML at Business Wire]

Redistributing Work in Aging Europe

Scientists of the Rostock Center for the Study of Demographic Change show in an article published in "Science" (Vol. 313, Edition 5782) that the total number of hours worked will be reduced soon, should the low participation of the elderly in the labor market continue. To keep the ratio of workers to non-workers and the number of hours worked per capita at current levels, work needs to be distributed more evenly over the ages of life and it needs to become more flexible.

According to James W. Vaupel, Executive Director of the Max Planck Institute for Demographic Research (MPIDR), and Elke Loichinger, demographic change and the ensuing consequences for the labor market and macroeconomic development are challenging society and politics. Taking Germany as an example, they show that as early as in 20 years from now, the hours worked per capita will be reduced by 8 percent, should the few young continue to work a lot and the many elderly continue to work a little.

Future generations may wonder about the way we concentrate learning in the first phase of life, work in the middle of life, and leisure in the later years, when our children no longer need us, Vaupel and Loichinger point out. The rigid patterns of biographies and the low employment rates at older ages are no longer sustainable in the face of demographic change. "The 20th century was a century of redistribution of income; the 21st century will be a century of redistribution of work", says James W. Vaupel.

Source: Max Planck Society Press Release (June 30, 2006)

Japan: Slowing Retirement; Is It Working?

In an effort to slow retirements in Japan, the government recently revised legislation to require companies to choose one of three options: push back the retirement age to 65, abolish retirement age altogether or give would-be retirees the option to work part time. According to a Reuters report, a "survey by the Ministry of Health, Labor and Welfare last month showed that 96 percent of companies polled had abided by those changes, but some economists expressed doubts that a fundamental change would occur."

"The legal changes are flawed because there's no punishment for failing to follow through with them," said Tomoyuki Ohta, senior economist at the Mizuho Research Institute. "I doubt the measure will stop many baby boomers from retiring, and once they're out of a job, it would be difficult for them to find new work with conditions they'd be satisfied with."

A Mizuho Research survey of 787 companies showed that on average, about 22 percent said they would continue employing all retirement-age workers who opted to stay, while the rest said they would keep only those qualified or deemed indispensable.

Source: International Herald Tribune "Japan tries to fill gaps before retirement surge" (July 10, 2006)

Canada: Professor Urges End to Mandatory Retirement

Terry Gillin, a sociology professor at Ryerson University in Toronto, urged delegates at British Columbia Premier Gordon Campbell's Council on Aging and Seniors' Issues to work towards total elimination of mandatory retirement. In calling on the province to change the Human Rights Code, which currently prohibits age-related discrimination for those 19 or older and less than 65, he said that forcing people to retire from their jobs when they turn 65 amounts to age discrimination and affects the poor, immigrants, and women the most.

Source: 680 News "Mandatory retirement means poor, immigrants, women lose out" (June 27, 2006)

Singapore: Age-Friendly Employment Practices Guide Issued

The Singapore Workforce Development Agency has issued an Age-Friendly Employment Practices Guide to encourage employers to adopt human resource practices that can help them better tap on the strengths of older workers. Targeted at employers, CEOs, managers and human resource practitioners, the guide provides examples of best practices and case studies that should help in better leveraging the skills and experience of older workers through the adoption of age-friendly HR practices.

The guide provides practical tips and case studies in 6 key areas:

• Recruitment;
• Remuneration and Benefits;
• Job Redesign and Automation;
• New Work Arrangements;
• Re-employment Policy; and
• Managing Career Transitions.

Source: Singapore Workforce Development Agency Press Release (June 26, 2006)

Accenture Study Includes Report on Talent Time Bomb

According to the "Accenture High Performance Workforce Study"--conducted approximately every 18 months, most senior executives report that their workforces lack the skills their companies need to achieve market leadership, and even their critical functions do not perform as strongly as they should. Among other things, 60% of the executives reported that, over the next five years, they expect to begin feeling the impact of the aging workforce and the impending retirement of baby boomers: "Of those, 28% said they are feeling the impact now. Almost one-half (43%) of participants described talent sourcing as a challenge or a severe challenge, primarily because of a smaller or shrinking talent pool from which to choose."

Source: Accenture News Release (June 21, 2006)

Pennsylvania: Governor Announce 2020 Vision Project for Aging Population

Pennsylvania Governor Edward G. Rendell has issued Executive Order 2006-04 Pennsylvania 2020 Vision Project directing all agencies under his jurisdiction to develop plans to meet the challenges of serving an older population. Among other things, the project will evaluate the impact of the aging population on the workforce of the commonwealth.

Source: Governor's Office Press Release (June 22, 2006)

Survey: Older Workers Rank Flexibility First Factor for Retirement Jobs

RetirementJobs.com has released the results of a survey of 50+ job seekers showing that entrepreneurship ranked at the bottom of a list of key job factors baby boomers and active retirees consider for an ideal retirement job, while flexibility ranked at the top. Seveny percent ranked flexibility or lifestyle integration, as compared to only 30% rating entrepreneurship as being important.

Defining a retirement job as any kind of work one does after retiring from a long term career or returning to work after age 50, analysts from RetirementJobs.com identified a qualitative set of likes and dislikes among people in their careers after age 50: “What’s In, What’s Out.”

Source: RetirementJobs.com Press Release (June 21, 2006)

South Korea: Leaders Adopt Social Convention Aimed at Aging Population

Seo Dong-shin reports in The Korea Times that, after five months of discussion among business, labor, and religious and civic groups, South Korea's government has adopted a social accord aimed at battling problems arising from Korea's falling birthrate and aging population. Among other things, "labor and business circles, for their part, will attempt to create more job opportunities for women and seniors, according to the accord."

The government has also agreed to continue discussion on ways to extend the retirement age of workers, while labor and businesses will negotiate on how to improve the retirement and wages system.

Source: The Korea Times "Korea Adopts Social Pact to Battle Low Birthrate" (June 20, 2006)

Singapore: Singaporeans Ready and Willing To Work Past 62

The findings of a retirement study, released at a forum organised by the Institute of Policy Studies, revealed that 41% of Singaporeans polled want the Government to increase the retirement age. Presenting a Singapore-focused look at HSBC's "Future of Retirement" survey, Dr Sarah Harper, director of the United Kingdom's Oxford Institute of Ageing, which conducted the survey, was quoted by Singapore Today as saying: "The message that is coming out of Singaporean people and the Singaporean employer is that we value older workers and we want to work longer."

The Institute has made available Dr. Harper's PowerPoint presentation.

Source: "Singaporeans want later retirement age: Survey" (June 16, 2006)

Aging Workforce a Top Challenge for Electric Industry

Black & Veatch Corporation has identified the aging workforce as the second of 10 challenges to the electric industry, "challenges which, if not adequately addressed, could threaten power system integrity and lead to significant rate increases." Black $ Veatch reports that half the workforce is likely to retire within a decade, so that "companies must develop the means to preserve the knowledge that will walk out the door and find skilled replacements for the retiring staff."

According to Richard J. Rudden, Senior Vice President, the firm's Enterprise Management Solutions division will be undertaking a survey to explore these big challenges and to analyze them in depth, and it expects to publish the results in the fall.

Source: Black & Veatch Press Release (June 20, 2006)

OECD States Governments and Businesses Erried in Pushing Early Retirements in 1990's

Virginia Galt reports in the Globe and Mail that new research by the Organization for Economic Co-operation and Development (OECD) suggests that governments and employers made a mistake, "which has returned to haunt them," by introducing early retirement schemes in the 1990s to push out older employees.

“Many older workers were induced to leave by very generous early retirement schemes, but relatively few young people were subsequently hired in their places,” John Martin, the OECD's director of employment, labour and social affairs, said at a forum in Toronto Thursday.

Now, with overall unemployment rates down but youth jobless rates still well above the international average of 6.6 per cent, employers are starting to complain about shortages of skilled labour, and policy makers are grappling with how to keep more of their experienced older hands in the work force.

Source: The Globe and Mail "Early retirement schemes a mistake, OECD says" (June 15, 2006)

Commentary: U.K. Employers Warned About Specifically Hiring Older Workers

In light of the survey showing that UK employers may be actively recruiting older workers, some employment experts are cautioning that employers may have the misconception that they will be complying with the age discrimination legislation coming into effect in December if they just boost their quota of older workers.

However, under the age equality regulations, businesses may only target a certain age group if they are under-represented in the workforce, but they must be careful not to exclude other groups. Richard Smith, employment services director at Croner, says "active recruiting of specific ages is not" allowed. Rather, Croner recommends the follwoing for creating an "age positive organization":

• Audit policies and procedures to ensure they encourage fair and non-discriminatory treatment and communicate them to employees
• Train managers on any potential issues they face and how to deal with those issues
• Take prompt action if issues are raised
• Give clear feedback on inappropriate behaviour
• Monitor statistics on age profile in your workforce
• Talk to/survey all employees to identify common areas of concern
• Role model positive, inclusive attitudes and behaviour
• Explore behaviours/values at the recruitment stage
• Create a "life-long learning" culture throughout the organisation
• Introduce team building exercises/buddying/mentoring schemes

Source: Croner Press Release (June 15, 2006)

United Kingdom: Survey Finds Businesses Actively Recruiting Older Workers

According to the Chartered Institute of Personnel and Development's annual "Recruitment, Retention and Turnover Survey," United Kingdom organizations "are responding to recruitment difficulties and new age regulations by adapting their recruitment and retention policies and actively targeting older workers." Specifically, the survey finds that 70% of employers are actively seeking to recruit people aged between 55 and pension age, while 31% are seeking to recruit people already entitled to the state pension.

Nicola Monson, author of the report, says, “It is encouraging to see that so many organisations are introducing age diverse practices ahead of the new regulations in October. This enables employers to tap into the relatively unused talent pool of older workers to overcome recruitment difficulties and help build an age diverse workforce that can add real value to business, not just in terms of older workers but all age groups. However in order to recruit fairly and remove any age bias there is still much that can be done, for example removing any age-related criteria from the application process.”

The full report will be available on CIPD's website after June 21.

Source: Chartered Institute of Personnel and Development Press Release (June 12, 2006)

Companies Boost Elder Care Benefits To Aid Veteran Employees

An article by Kim Leonard for the Pittsburgh Tribune-Review outlines how Verizon is taking steps, like many other companies, to help valuable, veteran workers in their 40s and 50s through the stress and confusion of providing care for aging family members. "Many big and small employers already are easing sick time policies and making schedules more flexible, allowing baby boomer workers to fit in needed visits to a frail parent and trips to doctors' offices."

"Baby boomers, comprising the biggest bulge in the population, are at the time of life when their parents are in their 70s, 80s and 90s," said Cliff Shannon, president of SMC Business Councils, representing about 4,000 small manufacturers in the region.

After Verizon noticed that more of its veteran employees were looking for advice on caring for elderly parents or other relatives, it added to its benefits ao that now employees "can find resources on an internal Web site, speak to a counselor and even arrange for a six-hour home visit by a geriatric specialist." As for other companies, Shannon doesn't see SMC members adding paid time off benefits for caregivers, but "there is an understanding that employees ought to be able to use vacation and sick time" to help parents whether they live at home or in assisted living or nursing facilities.

Source: Pittsburgh Tribune-Review "Ma and pa care" (June 11, 2006)

Survey: Older Workers Less Likely To Take Office Supplies for Personal Use

Older workers are less likely to make off with office supplies for personal use than younger workers, and they are more prone to feel guilty about it, according to a survey conducted by Spherion Corporation and Harris Interactive.

According to the survey of 1,630 employed adults, 18% report having taken office supplies for personal use in the past year, but when broken down by age, nearly a quarter of workers 18 to 29 report that they have taken supplies compared with 13% of workers age 50 and over. In addition, 17% of those 18 to 29 don't believe taking office supplies for their own use is wrongwere unapologetic versus only 7% of older workers at least 50.

Source: MarketWatch "Young workers more apt to take office supplies for personal use" (June 8, 2006)

Conference Board To Launch Maturing Workforce Rresearch Initiative.

A grant from the Atlantic Philanthropies USA, Inc. is enabling the Conference Board to launch a three-year program to study the inclusion and engagement of late-career workers in corporations and not-for-profit organizations. Specifically, the Board intendes to examine the practices and policies of major employers and business community leaders and related concerns and needs of today's mature workforce and to share promising practices for creating and maintaining a workforce inclusive of all generations.

The maturing workforce initiative at The Conference Board will convene separate Research Working Groups on mature workforce issues in the private and not-for-profit sectors. Marketplace opportunities related to the aging U.S. population will also be addressed in research from the Consumer Research Center at The Conference Board.

The Conference Board work will look at mature workers in two distinct roles-as employees and as potential retirees. It will focus on problems facing mature workers, the costs and value of mature workers, the hidden values of their job satisfaction, the impact of rising healthcare costs on these workers, emerging opportunities from aging consumer markets, prospects for building a better intergenerational workplace, and models for retirement. It intends to create new strategies to help major employers leverage the skills of employees who are late into their careers. The initiative will also periodically issue timely briefings and updates.

Source: Conference Board News Release (June 7, 2006)

Retirement Index Shows U.S. Workers Falling Short for Retirement

According to a new National Retirement Index developed by the Center for Retirement Research at Boston College (CRR), almost 45% working-age households are “at risk” of being unable to maintain their pre-retirement standard of living in retirement. Published as CRR Issue Brief No. 48, "Retirements at Risk: A New National Retirement Risk Index" suggests, however, that the situation is not hopeless: "if people choose to work longer--even just two years--and save 3% more, they can substantially improve the outlook for their retirement security."

The National Retirement Risk Index measures the share of working-age households who are at risk of being unable to maintain their pre-retirement standard of living in retirement.

CRR has also published a full report

Source: Center for Retirement Research at Boston College Press Release (June 6, 2006)

Aging and National Credit: Standard and Poor's Reviews Global Graying

On May 31, 2006, Standard & Poor's Ratings Services published a report outlining various simulations through 2050 of the fiscal and hypothetical sovereign ratings implications for 32 sovereigns, including all 25 EU members, as well as Canada, the United States, Australia, New Zealand, Norway, Japan, and the Republic of Korea. While the commentary article "Global Graying: Aging Societies and Sovereign Ratings" is only available to subscribers to S&P's RatingsDirect, they have also been publishing country by country reports, some of which speak to aging workforce issues. Some of these (Germany, Belgium, France)are available for free to people who register at S&P's website and others have had some press coverage.

A key conclusion of the main report is the fall-out that ageing may have on government solvency. Without further adjustment either to the current fiscal stance or to pension and health care costs, the median general government net debt-to-GDP ratio for the sample will reach an overpowering 180% of GDP by the middle of the current century, from 33% in 2005.

Publically available country specific reports include:

• United States
• New Zealand
• Japan
  

Source: Globe & Mail "Nations get 'wake-up' call about aging workers" (June 6, 2006)

Connecticut: Governor Signs Bill To End Social Security Offset for Worker's Comp

On May 30, 2006, Connecticut Governor M. Jodi Rell signed into law a bill to end the policy of cutting the worker's compensation payments to disabled employees if those workers collect or qualify for Social Security, one of ten states to do so. Passed by the state senate as Senate Bill No. 25, proponents said the offset hurt aging residents who've kept their jobs or returned to the workforce to supplement their income.

Source: Public Act 06-84 and legislative history.

Additional Source: "Senators say state's older employees hurt by worker comp policy" Associated Press (April 28, 2006)

France: Government Proposes Helping Unemployed Older Workers

According to an AFX News story in Forbes.com, French Prime Minister Dominique de Villepin has "unveiled proposals aimed at boosting employment among older workers, notably via the creation of a new medium-term jobs contract." Specifically, a 'Senior Fixed Term Contract' would be available to unemployed persons over 57 years old, would last 18 months, and would be one-time renewable.

The government's proposals would also, over union objections, phase out a tax on companies that fire workers over 50 years old, with the government arguing that the tax discourages firms from hiring such employees.

The proposals were also announced on the Prime Minister's website.

Source: Forbes.com "France unveils jobs-for-seniors plan" (June 6, 2006)

Unretirement: Financial Incentives for Continuing to Work

Nearly a quarter of older workers who describe themselves as "retired" are still working, either full time or part time, and many say working longer pays them big dividends--financial, emotional, or both. Paul J. Lim, writing for U.S. News & World Report, details many of these advantages of "unretirement." Among other things,

• working longer gives retirees more time to save--"If you keep working for even two additional years, that's two more years to sock away money into your retirement accounts."
• retirees can delay taxes by postponing withdrawals from 401(k) and traditional IRAs;
• one can delay tapping into Social Security and thus boost monthly payments;
• retirees can maintain healthcare coverage; and
• retires can reduce their withdrawal rate in retirement.

Source: U.S. News and World Report "It literally pays to work, and money can buy peace of mind" (June 12, 2006)

Aging Doctors Contribute to Looming Physician Shortage

Writing for the Los Angeles Times about how an aging America will need more doctors, but supply isn't keeping up, Lisa Girion reports that just as aging baby boomers will push urologists, geriatricians and other physicians into overdrive, much of the nation's physician workforce also is graying and headed for the door.

Specifically, "a third of the nation's 750,000 active, post-residency physicians are older than 55 and likely to retire just as the boomer generation moves into its time of greatest medical need." In fact, by 2020, "physicians are expected to hang up their stethoscopes at a rate of 22,000 a year, up from 9,000 in 2000. That is only slightly less than the number of doctors who completed their training last year."

Source: Los Angeles Times "Physician Shortage Looms, Risking a Crisis, as Demand for Care Explodes" (June 4, 2006)

Canada: Job Growth for Older Workers

In reporting that employment in Canada increased for a 13th consecutive year in 2005, Statistics Canada also reported that the employment situation for older workers aged 55 and over has become increasingly brighter. In 2005, 29.9% of this population had jobs, up from 29.0% in 2004, the ninth consecutive annual increase in their employment rate since hitting a low of 22.0% in 1996.

The report also shows that more workers are nearing retirement than ever before. In 2005, an estimated 3.6 million workers were within 10 years of (or older than) the median retirement age of 61. They represented 22.1% of the total, up from 10.3% in 1986.

Source: Statistics Canada News Release (June 1, 2006)

Japan: Justice Ministry Proposes Increasing Foreign Workers To Offset Aging Workforce

According to news reports, a Justice Ministry panel has recommended that Japan should limit the number of foreign workers allowed into the country and require those who are let in to acquire a command of the Japanese language.

Japan is debating ways to boost its aging workforce while taking into account public fears that admitting more foreign workers could lead to a rise in crime. Accordingly, the head of the panel, Vice Justice Minister Taro Kono, has suggested limiting the proportion of foreigners to 3% of the population, compared with 1.2% now. People with specialist skills should be favored over manual laborers, according to a ministry press release on the report.

Source: Reuters.com "Japan panel proposes limits on foreign workers" (May 31, 2006)

United Kingdom: New Surveys, Resources for Working Retired

Research conducted by Heyday, a new retirement website being launched by Age Concern, shows that Baby Boomers in Great Britain are intent on reinventing retirement with many people no longer following a traditional pattern of working up until State Pension Age and then retiring full time. Among Heyday's findings: 58% of working people in their 50's and 60's want to work in some capacity beyond retirement and almost 10% say they won’t retire at all, but 64% say it is impossible to get a new job within 10 years of retirement.

Heyday is also launching "Have Your Say"--a new survey--to find out the hopes and fears of people approaching or in early retirement. "Heyday is inviting over 10 million people to have their say on all the burning issues--work, ageism, pensions and more. This feedback will not only shape Heyday as an organisation, but will create a powerful voice on what Britons want out of modern retirement."

Source: Age Concern News Release (May 30, 2006)

Singapore: Tripartite Alliance for Fair Employment Practices.Established

Following the recommendations of the Tripartite Committee on Employability of Older Workers, the Singapore government has formed a Tripartite Alliance for Fair Employment Practices (TAFEP) to shift mindsets among employers, employees and the general public towards fair and responsible employment practices for all workers.

Co-chaired by Mr Bob Tan, Vice President, Singapore National Employers Federation (SNEF) / Council Member, Singapore Business Federation (SBF), and Mdm Halimah Yacob, Assistant Secretary-General, National Trades Union Congress (NTUC), the Alliance held its first meeting on May 22 and adopted a plan of action. Among other things, it intends to formulate guidelines for fair employment practices towards workers of all ages, genders, races and religion, and initiate a fair employment movement through national and sectoral programmes to facilitate broad and effective adoption of fair employment practices.

Source: Ministry of Manpower Press Release (May 29, 2006)

New Zealand: Flexible Working Options Attract Older Workers

According to the Work and Age Report 2006, a recent survey conducted by the New Zealand EEO Trust, employers would be better placed to retain the skills of older workers if they offered quality part-time work and flexible working hours. With more than 6,400 people responding (most over 45 years old, but 24% younger than 45) to questions about what workplace conditions would encourage them to continue working past their expected retirement date, quality part-time work and flexible working hours were the most popular options.

Reliability is the number one quality older people bring to the workplaces according to survey respondents. In addition, most agreed that older people provide good customer service and communication skills, are committed to their careers, have skills in training people, show initiative and are able to create a good atmosphere in the workplace. However, about one in three respondents said they had experienced difficulties at work due to people being different ages, and a third said they had experienced discrimination at work due to their age.

Source: Equal Employment Opportunities Trust Media Release (May 26, 2006)

Commentary: Waste of Mandatory Retirement

Michael Willard, writing int The Ukranian Observer, chastises corporations as being rather myopic when it comes to judging value of an employee: "They often look at how expensive the person is, and feel sure a younger firebrand is up to the task of the job." Even in a country, such as Ukraine, where retiring at 60 is not unusual but mortality charts, particularly for males, extend just a few clicks beyond that age, Willard findds "many older Ukrainians not wishing to retire at 60 or 65."

Willard then went on to quote extensively from a speech given by Lord John Browne, CEO of British Petroleum, railing against mandatory retirement. Browne argues that (1) countries need people to work longer and need to ensure that the balance between those in work and those not working doesn't move to the point where the burden of taxation and transfer payments is intolerable, and uncompetitive, (2) mandatory retirement at a fixed age is inappropriate since more than 70% of the European economy is now based on services, rather than manufacturing, and (3) in key disciplines such as engineering, a disproportionate share of BP's workforce is over 45, and indeed over 50. More importantly, however, Browne argues that it "is the need for a civilized society to overcome prejudice" and that "too many people seem to think that it is still acceptable to say you've reached the age of 60: We don't want you any more."

Source: The Ukranian Observer "THE WORKPLACE: The Waste of It All" (May 2006)

United Kingdom: Government White Paper on Pension Reform, Raising Retirement Age

The U.K. government has published its response to the report of the Pensions Commission in the form of a White Paper--"Security in retirement: towards a new pensions system", which sets out proposed legislation. Among other things, if passed into law, the state pension age would gradually rise to 68 by 2044. Other highlights include:

• During the next parliament, the state pension will be made more generous, and future increases will be tied to earnings rather than prices
• The number of years it takes for people to qualify for a full basic state pension will be cut to just 30
• From 2012, people will be automatically enrolled into a new, low-cost national savings scheme, albeit with the chance to opt out if it is not suitable for them.

The proposed changes will not affect anyone currently over the age of 47.

In addition to the complete White Paper, online resources include an Executive Summary and Secretary of State for Work and Pensions, John Hutton’s Oral Statement to the House of Commons.

Source: Department for Work and Pensions Press Release (May 25, 2006)

Anti-Aging Developments: The Social Burden of Longer Lives

In the first of a three-part series on the science of anti-aging, Ker Than reports for Fox News that "while scientists go back and forth on the feasibility of slowing, halting or even reversing the aging process, ethicists and policymakers have quietly been engaged in a separate debate about whether it is wise to actually do so."

When it comes to the workplace, living longer will mean more time spent working: "Careers will necessarily become longer, and the retirement age will have to be pushed back, not only so individuals can support themselves, but to avoid overtaxing a nation's social security system." In addition, the experts worry that competition for jobs would become fierce and workplace mobility (or lack thereof) could make it harder for younger workers to get ahead.

Source: FOXNews.com "Toward Immortality: The Social Burden of Longer Lives" (May 23, 2006)

House Committee Approves Reauthorization of Older Americans Act

Without opposition, the U.S. House Committee on Education & the Workforce has approved the Senior Independence Act (H.R. 5293), which reauthorizes and strengthens services offered under the Older Americans Act, the chief federal law governing the organization and delivery of a number of social services for older Americans. According to a summary of the bill, the legislation would, among other things safeguard employment-based training for older Americans by:

• Maintaining the program’s dual purpose of community service and employment-based job training;
  
• Allowing public or private nonprofit agencies and organizations to compete for national grants, which is consistent with current law;
  
• Retaining the age of 55 for program eligibility (consistent with current law), but requiring grantees to first serve those with the greatest need, including individuals over the age of 65.
  
• Strengthening opportunities for business sector partnerships
• Requiring grantees to have an average time limit for participation not to exceed 2 years and limiting individual participation to not more than 4 years

Source: U.S. House Committee on Education & the Workforce Press Release (May 17, 2006)

Reactions:
While commending the House for its bipartisan agreement to reauthorize the Act, the AARP is concerned that "the participant tenure limits in this bill for the Senior Community Service Employment Program (SCSEP) will disproportionately impact those oldest and hardest to serve. These vulnerable, low-income older workers, representing some 30 percent to 50 percent of the program's current participants (18,000 to 25,000 individuals) will be the first affected by these tenure limits." Press Release, May 18, 2006

Upcoming Aging Workforce Conferences Announced

Two organizations focusing on the aging workforce have announced conferences devoted to these issues.

First, Boston College Center on Aging & Work has announced its inaugural conference on "Aging of the Workforce: Competitive Advantages or Vulnerabilities" for May 31-June 2, 2006 , in Newport, RI.

A timely opportunity for human resource professionals and other corporate executives to explore ways to link worker talent to strategic business goals. The meeting will put aging issues in broader business contexts and provide a chance to apply lessons-learned to your company. Leaders from business, universities, and the media will share their views with participants. Time allotted forquestion-and-answer and active participation will enable you to hear from peers, test your ideas and evaluate your own experiences with engaging the talent of older workers. The meeting is free but open by invitation only; reservations
are required in advance.

Second, the University of Pittsburgh's Institute of Politics is presenting "The Aging Workforce: Challenge or Opportunity?" June 23, 2006 in Pittsburgh, PA.

This event will bring national and regional leaders together to consider the implications of southwest Pennsylvania's aging workforce. Regional research indicates that the mining, manufacturing, transportation and utility industries are disproportionately mature and that few companies in these sectors have fully considered the implications of their workforce demographics. For additional information please contact Vanessa Lund at the Institute of Politics.

Source: Aging Workforce News Conferences and Events Regularly Updated

Connecticut: Repeal of Social Security Offset from Workers Comp Advances

As of May 17, the legislation (Public Act 06-84) in Connecticut to repeal the social security offset from workers' compensation benefits had passed both houses and had been trasmitted to the Secretary of State. See eaelier Aging Workforce News article. Opponents of the legislation have stated that "the cost of this proposal (SB-25) to Connecticut employers is expected to be $8 million in the first year alone, according to a recent impact statement issued by the National Council on Compensation Insurance (NCCI). That increased cost would continue in future years."

Source: Senate Bill 25 Legislative History

Retirement Study: Americans and Their Employers Don’t See Eye to Eye

In releasing the 2006 Merrill Lynch New Retirement Study, Merrill Lynch reports a "startling disconnect" between how Americans and their employers view retirement: While many people are actually working in retirement or have taken steps for a new retirement career, most employers are not on track to prepare for this phenomenon.

“Not only is the new model of retirement here, but it transcends many different age groups,” said Michael Falcon, head of the Retirement Group at Merrill Lynch. “Multiple generations report cycling in and out of work and pursuing a new career in later life as the retirement ideal. This important study shows us that companies need to be aware of this new concept of retirement in order to prepare for the new work force realities.”

According to the survey--conducted for Merrill Lynch by Harris Interactive, 71% of those surveyed want to work in some capacity in retirement. The most cited reason for working during retirement was to stay mentally and physically active, and most would like to change their line of work and cycle between periods of work and leisure. On the other hand, while companies are not completely in the dark and recognize the shift toward the desire to work in retirement, they are more likely to assume that employees want to work a regular part-time schedule than to cycle between periods of work and leisure and have not responded to individuals’ overwhelming desire to pursue a completely new line of work in their “new retirement.”

Source: Merrll Lynch News Release (May 18, 2006)

Europe: Are EU Measures Aimed at Increasing Employment Older Workers Delivering?

Anne-Sophie Parent, director of AGE, writes that while--following the adoption of the EU framework directive 2000/78, at which policy makers became aware of the complex issue of age discrimination--ambitious targets were set in the framework of the Lisbon strategy and all member states decided to do something to keep workers in the workforce for longer, this approach has usually not delivered the expected results. For example, draft legislation in Germany, which would have allowed employers to hire workers aged over 52 under limited contracts without any restriction, was deemed to constitute age discrimination and forbidden by the European courts.

In other countries, active labour market policies targeting the over 50s succeeded in increasing the employment rate of older workers: Finland, for example, whose active ageing policy is delivering very significant outcomes.

So, what lessons can we draw from the limited experience gathered so far on measures to promote the employability of older workers?

We feel that labour legislation should aim at compensating the age factor in such a way that it becomes neutral for both employers and workers.

This means creating incentives for both employers and workers without being detrimental.

Parent beleives that "an age-friendly culture needs to be promoted both inside and outside the labour market. Awareness needs to be raised on the value of a diverse workforce which reflects the diversity of today’s EU population."

Source: "EU Employment Week: Reflecting Europe’s diversity" EUPolitix.com (May 17, 2006)

Worries that Aging Workers Will Bring Brain Drain to Indiana

According to a report, whose findings will be shared at the “Managing the 21st Century Workplace: Value and Impact of Older Workers” conference, nearly 29% of Indiana residents will be age 55 or older by 2030, versus 22.4% in 2005. Thus, Chris O'Malley reports, "employers and economic development leaders, already lamenting that 36 percent of Indiana college graduates leave the state after graduation, may now have another 'brain drain' to worry about."

While some economists say fears of a labor shortage are unfounded because of expected productivity gains and other offsetting factors, Barry Spiker, a senior fellow at the University of Indianapolis’ Center for Aging & Community, warned: “We’re facing a crisis that’s just never been seen before in this country, ever.”

The conference will share new statewide data, including the findings of “Gray Matters: Opportunities and Challenges for Indiana’s Aging Workforce,” a report written by former Indiana Economic Development Council President Graham Toft and Nadine Jeserich, now both working at local economic development firm Thomas P. Miller & Associates. According to the report, as older workers leave the work force, Indiana won’t see as much of a brain drain as many other states, however, since only 11% of the state's population 55 or older holds a bachelor’s degree or higher, placing it 46th among all states. In addition, only 16% of that population are in high-skill occupations—placing Indiana 42nd. Finally, Indiana ranks dead last in coaxing older workers back to college.

Source: "Employers brace for age shift" Indianapolis Business Journal (May 15-21, 2006)

Hewitt Study Finds Company Efforts Positively Impact U.S. Employees’ 401(k) Saving Habits

Hewitt Associates has released its report “How Well Are Employees Saving and Investing in 401(k) Plans, 2006 Hewitt Universe Benchmarks,” which finds that efforts by companies to help U.S. employees save for retirement--including putting the 401(k) plan on autopilot, simplifying plan choices and targeting communication--have resulted in improvements in employees’ retirement saving and investing behaviors. Nevertheless, the report also discloses that nearly half of employees examined still failed to participate in their 401(k) plan or failed to contribute enough to obtain the full company match.

Source: Press Release Hewitt Associates (May 16, 2006)

McKinsey Survey Finds U.S. Workers Retiring Early

Despite growing financial pressure to stay in the workforce, a report by McKinsey & Co., based on a national survey of 3,086 people, shows that American workers are far more likely to be forced into an early retirement than many expect. Writing for the LA Times, Jonathan Peterson reports that 40% of retired workers left their jobs sooner than they had planned, usually because of health problems or the loss of employment, and that while 45% of people currently employed planned to keep working past age 65, only 13% of polled retirees had done so.

McKinsey's data do not mean that the trend toward a later retirement age is changing, experts say. But the facts counsel caution to those who discount the challenges of working into their late 60s or beyond, and they suggest that many who assume they will work late in life may be mistaken.

Source: "Many Forced to Retire Early" Los Angeles Times (May 15, 2006)

Hong Kong: Low Retirement Age Threatening Brain Drain

Doug Crets writes that attendees at an HSBC retirement forum were told by a researcher on aging and a legislator that "Hong Kong's low mandatory retirement age--coupled with its rapidly aging population and one of the world's lowest birth rates--will lead to a 'brain drain' unless the government and individuals plan for the future." However, he also notes that a recent survey on aging shows that most Hong Kong people believe the government should enforce mandatory "additional private savings" and increase the retirement age.

Source: "Aging expert warns of brain drain" The Standard (May 16, 2006)

The End of Retirement

The U.S. Department of Labor's Monthly Review has published an article by Teresa Ghilarducci, a teacher of economics at Notre Dame University and a visiting professor at the New School for Social Research, about the signs of the end of retirement all around. She argues that "the changes in the retirement future of Americans stem from the decline of union contracts, a dramatic shift in presidential and congressional attitudes about government responsibility for social insurance, and the substitution of defined contribution or 401(k)-type accounts for traditional defined benefit pensions."

Twenty years of experience with 401(k) plans reveal that workers will never be able to accumulate enough assets in individual accounts and choose payout options that will provide a steady stream of income for life after retirement. This means that Americans will turn to the option that American adults have always relied on—contingent, low-paying jobs—and will lose one of the few remaining accomplishments of the American working class, retirement.

However, given that defined contribution plans are here to stay, she believes taht there is barely a regulatory framework in place to protect the public interest. She suggests that sensible protections that already govern the investment behavior of defined benefit plan fiduciaries could be a good place to start, including limiting the percent of a portfolio that is allowed to be in the employee’s company’s stock, banning lump sum payments, and mandating worker representation on pension boards.

Source: "The End of Retirement" Monthly Review (May 2006)

Working Longer: Does it Help People Be Healthier, Happier?

Esteban Calvo, a graduate student in Sociology at Boston College and a graduate research assistant at the Center for Retirement Research at Boston College, has published a paper--"Does Working Longer Make People Healthier and Happier?"--that suggests that longer working lives will help most people maintain their overall well-being. The paper addresses the impact of late-life paid work on physical and psychological well-being, and it includes a review of the literature on work at older ages and elderly well-being.

While working longer seems beneficial for most people, it will likely have negative consequences for some. The type of job seems to be a critical factor. Undesirable jobs can wash out the potential favorable effects of work. Another critical factor is the opportunity to continue working. Older workers may be willing to prolong paid work, but, in order to find a job, they need to be able to work and have a real demand for their labor.

Calvo also suggests some areas for future research. In particular, since an increase in the early retirement age reduces the ability of people to voluntarily decide their labor force participation, he wonders whether less control in the work/retirement decision could have an adverse impact on the well-being of older individuals. Also, he notes that variations in the benefits of work as people move through their 60s should be examined--even though work at older ages seems beneficial for many, the benefits may decrease, or stop increasing, after a certain age or amount of time worked per year.

Source: Issues in Brief No. 2 Boston College Center for Retirement Research (February 2006)

United Kingdom: Age Positive Week

Employers across Great Britain were called to join the fight to tackle ageism at work during Age Positive Week (May 8-12). The Week's goal was to challenge ageist stereotypes at work and promote positive examples of employers and employees defying ageism.

Source: News Release Age Positive (May 6, 2006)

Survey: Firms Ready to Respond to Challenge of Aging Workforce

According to the latest Leadership Pulse™ survey from Dr. Theresa M. Welbourne of eePulse, Inc. and the Ross School of Business, University of Michigan, usinesses are ready to respond to the 17% of the U.S. workforce that will be 55 and older by 2010. The study was designed to understand the current effects of the aging workforce (AWF) and readiness to address future AWF issues.

Specifically, of the 369 general managers to C-level executives surveyed, 62% are ready to retain older workers, 49% are ready to recruit older workers, 43% agree that the AWF currently affects their organization’s culture, 42% agree that the AWF currently affects the quality of talent in their organization, and 41% agree that the AWF currently affects their ability to compete in their particular industry.

A powerpoint presentation of preliminary results is also available.

Source: News Release ClickPress (May 8, 2006)

Commentary: Companies Must Look Across Generations and Borders for Talent

Building on the results of the Human Capital Institute's survey of HR executives, its executive director Allan Schweyer writes that "the winners of the war on talent will welcome talent of all ages and varieties, and they will build their networks into the farthest reaches of the planet." Given the widespread shortages of talent that are already occurring across the country, he finds a strange paradox in the survey findings taht While more than half of the executives agreed that the aging workforce is an issue that must be dealt with because it will lead to a workforce shortage, less than one-quarter said that the aging of their workforce is an issue that is strategically very important to them.

It is imperative that executives and senior managers, from small, mid-size and large firms, understand the implications of our aging and diversifying domestic talent pools as well as the dynamics of a global workforce that is expanding at lightning speed. For human resources leaders, knowledge of best practices in retaining older workers is key. For recruiters, knowledge of top sources for recruiting the diverse workforce and of the factors that appeal to diverse recruits is critical.

Source: "Build Talent Pipelines Across Generations, Cultures and Borders" Inc.com (May 2006)

Reverse Job Fairs for Older Workers

A “reverse” job fair has been held at the Metro Career Center in San Diego, at which job seekers 55 and older stood by while employers approached them to check job qualifications and to talk. The event was put on by Community Options, a federally funded group that has a program to help low-income older people with job training and placement, and by the Oasis Institute, a private nonprofit organization partially funded by a grant from AT&T that helps older individuals with career and education opportunities.

According to an article by Michael Kinsman, Community Options and Oasis teamed up to coach the workers on job-search skills and some personal computer training over a four-month period so they would qualify for a variety of jobs. Charlotte Tenney, a Community Options senior employment counselor said “We thought it might make a difference to teach job candidates how to sell themselves to the employer.” Tenney came up with the idea of having employers approach individuals: “We really wanted to try something different.”

Source:"At this job fair, older workers waited for employers to visit" San Diego Union-Tribune (May 7, 2006)

Removing Obstacles for Older People Looking for Work

Randi F. Marshall, writing for Newsday, tells stories of both why finding work is tougher for older people and what employers can gain by clearing away the obstacles. Despite the efforts of many older people seeking work to e-mail resumes and learn new skills, Marshall says that "some mature workers have come across roadblocks that younger job-seekers haven't encountered. Employers, said some experts, look only at the immediate price tag--in salary, medical benefits, pensions and other areas--and not at the benefits of hiring the over-50 crowd."

Perhaps the most difficult part of the process is the interview. It's hard for older job- seekers to sit across from an interviewer who is 20 years younger than they are, or to look around at a roomful of job-seekers who are just out of college--especially when their last interview may have been more than 20 years ago.

However, one staffing firm quoted by Marshall, advises that interviews should focus on what a worker can bring to the company and the worker's knowledge about that company--not the worker's previous experience.

Source: "A job in itself" Newsday (May 6, 2006)

Large U.S. Businesses Continue To Shift Ffrom Traditional Pensions

Watson Wyatt Worldwide has reported new analysis showing the largest U.S. companies continued to shift from traditional pensions to 401(k) plans in 2005. Specifically, it found that only 37% of Fortune 100 companies offered a traditional pension plan to new hires in 2005, down from 42% in 2004, 50% in 2002, and 89% in 1985. At the same time, the percentage of companies offering workers only a 401(k) or other type of defined contribution plan increased to 36% in 2005, up from 25% in 2004 and 17% in 2002.

In light of these results, Watson Wyatt Worldwide urges Congress to act on long-standing funding and regulatory issues affecting pensions. At the same time, the firm’s experts say employers should get a true reading of their plans’ cost structure and of related workforce management issues before making plan changes.

Source: News Release Watson Wyatt (May 4, 2006)

Case Study: Shadowing Program for Boomer Succession Plans

According to an article written by Barbara Rose of the Chicago Tribune, International Truck and Engine Corp. started a program of assigning younger employees to "shadow" veterans before the older workers retire in 2004 after a report to the company's board showed that half its 600 managers and executives would be eligible for retirement within five years. As Dan Ustian, chairman, the company's president and chief executive officer, said: "All that knowledge is really important--the culture, the relationships with customers. It’s vital we get a head start."

Among other things, bosses at International were coached on how to initiate talks with retirement-eligible employees without running afoul of age discrimination laws. They asked questions such as, "Where do you see yourself in five years?" and, "Are there other positions you'd consider?" "Many of the conversations are about trying to get them to stay and groom a successor," said Greg Elliott, vice president for corporate human resources and administration. Then, the company would work with the retiring employee; for example, with one senior executive, his package, which included a retention bonus, kept him on 12 months, long enough to identify a successor and complete a six-month process of job shadowing.

Source: "Preparing for the baby boomer brain drain" Portsmouth Herald (May 3, 2006)

Canada: Pension Crisis Deepens

According to the 3rd annual pension risk survey by The Conference Board of Canada and Watson Wyatt Worldwide, 61% of Chief Financial Officers (CFOs) say the pension crisis in Canada is widespread and likely to persist beyond the next few years. In addition, only 19% said the crisis is widespread but unlikely to become permanent--down from 23% in 2005 and 39% in 2004, and just 15% said the pension situation is isolated to relatively few organizations.

Source: News Release Conference Board of Canada (May 2, 2006)

Japan: Older Workers Retunring to Labor Force

David Pilling, writing in the Financial Times, reports that people over 60 are being drawn back to the workforce as it rises for the first time in eight years. "The willingness of those who left the jobs market to re-enter also shows the mechanisms by which the labour market might respond to the challenges of an ageing society, which is shrinking the size of the traditional workforce."

According to official figures, by last year, there were 9.67m people aged 60 or over either working or looking for work, a 450,000 increase from five years earlier. He also writes that officials from The Bank of Japan say every business sector is now suffering from labour shortages, which could push up wages and lead to further hiring of people who had drifted out of the labour market.

Source: "Japan sees first rise in workforce in 8 years" Financial Times (May 1, 2006)