United Kingdom: Research Suggests Older Workers Key to Retail Industry

According to new research by Skillsmart Retail, older employees are likely to be more loyal and stay in the retail sector long term. Following a survey by the Sector Skills Council into the attitude of retail workers that found that although while one-third of the retail workforce is under 25, employees in their 30's, 40's and 50's saw their jobs as much more permanent, Skillsmart Retail undertook a larger piece of research investigating the importance of older workers in an ageing population and shrinking labour pool.

The "Adult Retail Employment Survey" carried out in August 2008 by TNS Research found that 63% of 35-64 year-olds saw themselves continuing in retail for the foreseeable future-- nearly twice the average of that of all ages (37 per cent)--and that just 17% of 35-64 year-olds saw retail as a temporary phase, compared to the average figure of 41%.

Karen Charlesworth, Head of Research at Skillsmart Retail, said: "While more research needs to be carried out, this age group may be a key way of increasing the skills base in the industry and we are now looking into expanding our research in order to investigate this further."

Source: Skillsmart Retail News Releae (September 10, 2008)

Survey: Flexible, Delayed Retirements on Increase in United Kingdom

As part of CBI (Confederation of British Industry)/Pertemps Employment Trends Survey on telework and flexible work, CBI reports that the United Kingdom is experiencing a growth in flexible retirement. Specifically, in 2007, 31% of employees reaching retirement age asked if they could postpone their retirement. Employers granted 81% of those requests were granted, which CBI points out is still significantly lower than the 95% of flexible work requests from parents which are accepted.

Employers continue to face challenges when assessing requests to postpone retirement, and it is essential to keep a default retirement age as a trigger for discussion.

[John Cridland, CBI Deputy Director-General] said: "Many older workers do not want to retire, or do not feel financially secure enough to do so, particularly with the downturn in the housing market. In the majority of cases employers are very happy to retain older staff, who often have invaluable skills and experience."

Source: Confederation of British Industry Press Release (September 8, 2008)

Additional Reading: The Times "It is no time to retire as the gloom deepens" (September 8, 2008)

Canada: Study Evaluates Worker Understanding of Anticipated Retirement Income

According to research published by Statistics Canada, about two-thirds of Canadian "near-retirees" anticipate that their retirement income will be adequate or more than adequate to maintain their standard of living once they have left the workforce. In addition, individuals who receive advice are more likely than others to express confidence in the adequacy of their retirement savings to maintain their standard of living in retirement.

Of the 7.2 million Canadians aged 45 to 59 in 2007, about 80% or 5.7 million were actively or recently employed and had not previously retired. Of these 5.7 million near-retirees, 71% received financial advice from at least one source, and 50% received advice from at least one source in the financial industry. However, 29% do not receive any advice.

These results come from two articles by Grant Schellenberg and Yuri Ostrovsky drawing on the results of the 2007 General Social Survey (GSS) on family, social support and retirement: "The retirement plans and expectations of older worker", which examines when individuals plan to retire, the certainty they have in their plans, and their confidence in their financial preparations, and "The retirement puzzle: Sorting the pieces", which examines the retirement advice and information they receive.

Source: Statistics Canada The Daily (September 9, 2008)

Commentary: Myths and Prospects for Older Workers

James E. Challenger, president of Challenger, Gray & Christmas, Inc, debunks the myth that "[w]orkers over 50 who have lost their jobs will have a very difficult time obtaining another job." On the contrary, he says, older workers "are winning new jobs in approximately the same length of time as their younger counterparts."

Among other things, he points out that many employers are "placing a premium on experience to help them meet their increasing worldwide competition." In addition, a new study by Challenger, Gray & Christmas "shatters the myth that older workers are particularly vulnerable in this economic downturn. The fact is that pared-down companies may increasingly rely on seasoned veterans to get them through the downturn."

Challenger advices older workers looking for work to be accommodating, emphasize past examples of loyalty, emphasize relevant experience, demonstrate flexibility and creativity, look and act young, and stay current and embrace technology. In addition, he cites several industries as looking particularly favorably on older workers: healthcare, teaching, consulting, nonprofit Organizations, customer service/customer relations, and small Business.

Sources: Challenger, Gray & Christmas "Older Workers Still In Demand!" (September 10, 2008), "Advice for Job-Seeking Older Workers" (September 10, 2008); California Job Journal "Older Workers Find Favor in the Current Job Market" (September 7, 2008)

Montana: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Montana, the 15th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Montana: 2004":

• 14.6% of workers were 55 and older, while 3.1% were 65 and older;
• statewide, the real estate and rental and leasing industry had the highest proportion of or workers 55 and older, with 22.9% of its workers in that age group, with the transportation and warehousing industry following with 20.9%; and
• the state's health care and social assistance industry employed the greatest number of older workers, with about 18.1% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (September 8, 2008)

Netherlands: Government Encourages Work Changes to Allow Later Retirement

Netherlands social affairs minister Piet Hein Donner has said taht people involved in physically heavy jobs, such as construction work, should be able to switch to lighter tasks so they can continue to work after they are 62.

In addition, Donner says that the government is working on measures for to make older staff more attractive to employers. This could include giving employers a discount on social security contributions if they employ someone between 62 and 65 years.

Sources: NU.nl "'Doorwerken in andere baan na zwaar werk'" ["'Give older workers lighter tasks'"] (September 3, 2008)

Survey: Older Workers Have Healthier Diet, Exercise More

A survey conducted by ComPsych Corporation found that 52.2% of workers in their 60s have healthy diets, compared to only 17.7% of employees in their 30s. In addition, employees in their 50s and 60s fared better in level of exercise, outlook on life, social support and stress levels.

Specifically, 27.3% of employees in their 50s exercised more than four days a week, while 19.6% of 30-something workers did so, 82.6$ of workers in their 60s had a very positive outlook on life, compared to 46% of employees in their 30s, and 30.4% of employees in their 60s had high stress levels, while 64.7% of 30-somethings had high stress.

"Our survey showed employees in their 30s were remarkably inactive," said Dr. Richard A. Chaifetz, chairman and CEO of ComPsych....

"Workers in their 30s may be at peak productivity but also at greatest risk for neglecting their health and developing long-term health problems due to poor lifestyle choices," he added. "Corporate wellness programs should be especially attentive to the needs and issues of this age group."

Source: ComPsych Press Release (August 25, 2008)

Study Establishes Baseline for Civic Engagement among Retirees

According to an article published in The Gerontologist, civic engagement--defined as volunteerism and paid work, done for at least one day per week, that directly impact the local community--can now be considered a distinct retirement role. In "Civic Engagement as a Retirement Role for Aging Americans", written by Brian Kaskie, PhD, in collaboration with a team of University of Iowa researchers including Sara Imhof, PhD, Joseph Cavanaugh, PhD, and Kennith Culp, PhD., the authors argue that a more precise meaning of civic engagement is important to policy makers and program administrators and found that engaged retires differ significantly from those who volunteer less, work in non-civic roles, or do neither.

The research encompassed a survey of 683 retirees. Among the findings: 18% of respondents volunteered for more than five hours per week, and 6.3% held paid positions that were classified as civically engaged. The results also indicated that the non-engaged older adults tended to be less educated, less financially secure, and less healthy than their engaged counterparts.

Source: Gerontological Society of America Press Release (September 3, 2008)

New Zealand: Guidelines Issued for Retaining and Recruiting Mature Employees

New best practice guidelines to help employers look at innovative ways of retaining and recruiting mature employees have been released in New Zealand. The guide provides information both on older worker’s rights and responsibilities and tips for employers and was produced by a group comprising the Human Rights Commission, the Retirement Commission, the EEO Trust, Business New Zealand, the CTU and the Canterbury Employers’ Chamber of Commerce. The guide--"Valuing Experience: a practical guide to recruiting and retaining older workers"--is available online and as a downloadable PDF.

According to Ruth Dyson, Minister for Social Development and Employment:

"The guidelines are part of The Tapping into the Talent of Older Workers project which builds on recent important steps, in particular the legislation to overcome age discrimination which has been important in shifting employer attitudes.

"Recent research by Victoria University's Institute of Policy Studies has highlighted changing employers' attitudes towards older workers. Many employers recognise that older workers are loyal, reliable, committed and have more experience. However, some employers also believed inaccurate stereotypes such as thinking that older employees are unable to adapt to new technologies. We need to do more to challenge these misconceptions and combat age discrimination."

Sources: Minister for Social Development and Employment News Release (September 3, 2008); New Zealand Council of Trade Unions Press Release (September 3, 2008)

South Carolina: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on South Carolina, the 14th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in South Carolina: 2004":

• 14.9% of workers were 55 and older, while 3.3% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, with 21.7% of its workers in that age group, followed by the agriculture, forestry, fishing, and hunting (20.7%) and real estate and rental
  and leasing (20.5%) industries; and
• the state's manufacturing industry employed the greatest number of older workers, with about 19.9% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (August 27, 2008)

United States: Evaluation of Demand for Older Employees

An analysis of data from the U.S. Bureau of Labor Statistics shows that while the slowing economy has dampened the demand for older workers, the number of workers 55 and older is still growing significantly--shattering any myth that older workers are particularly vulnerable in this economic downturn. According to the Challenger report, employment among those 55 and older grew by 3.7% from July 2007 to July 2008 while the number of employed aged 20-44 declined by an average of 1.3%.

John Challenger, chief executive officer of Challenger, Gray & Christmas, said that “The fact is pared down companies may increasingly rely on seasoned veterans to get them through the downturn. They may cost more in salary and benefits, but their experience and knowledge make them highly valued.”

The Challenger report also suggests that it is also a myth that older workers are for the most part underemployed, seemingly able to find only part-time, hourly wage positions in retail and other low-skill service industries, as the biggest employment gains for workers 55 and older occurred within management, professional and related occupations. In addition, the report notes that the preference for older workers can be seen in the significant drop in the amount of time it takes job seekers 50 and older to find new positions:

The median job search for those over 50 winning positions in the second quarter lasted 4.2 months, according to the latest Challenger quarterly survey of discharged managers and executives. That is just about two weeks longer than younger job seekers, whose median job search time in the second quarter was 3.6 months.

Source: Central Valley Business Times "Report: Older workers still in demand" (August 21, 2008)

Taiwan: Numbers of Unemployed Older Workers Increasing

According to the China Post, Taiwan's Council of Labor Affairs has reported that the number of older Taiwanese workers who are unemployed has more than doubled over the past 10 years, indicating increased employment barriers for this group. Specifically, 75,000 workers aged 45-64 in Taiwan were unemployed in 2007, compared with 34,000 workers in 1997.

Of these unemployed workers, 37% were offered employment but turned down the jobs, mainly because the pay offered was too low. Of the remaining workers, 59% were hampered by age restrictions set by employers, while another 19% were not equipped with the skills required by employers. However, it was also acknowledged that the increase in unemployment of older workers was also partly due to the aging of Taiwan's population.

Source: China Post "Number of elderly jobless workers rising" (August 21, 2008)

Survey: Generational Issues Surface among Workplace Fears of Older Baby Boom Workers

According to a study based on in-depth interviews with 50 over-50 workers, fear of redundancy (layoffs, firings), relevance (keeping skills current), and resentment from younger associates are the greatest concerns for the Baby Boom generation. The research on "Ageism: Managing on the Bias" was conducted by Age Lessons.

Laurel Kennedy, president of Age Lessons, summarized key findings, "Older workers believe that younger associates drop them from critical informal communications networks, turning the office grapevine into a sour grapevine and blocking access to important political and business developments." Another key finding was defined as senior shutout, where companies inadvertently close-off career paths and training opportunities to mature workers, assuming that they either are uninterested or unwilling to accept a new challenge."

Kennedy suggested a number of fixes that companies can implement to maximize workplace morale, inlcuding:

• awareness training during on-boarding about generational differences, office and meeting etiquette;
• adopting age-neutral hiring and educational policies that look at the candidate pool irrespective of age;
• forming intergenerational work teams to ensure cross-pollination across age cohorts; and
• extending continuing and professional educational opportunities to older workers.

Source: Age Lessons Press Release (August 21, 2008)

U.S. Economists Urge Raising Social Security Retirement Age

According to a working paper issued by the National Bureau of Economic Research, absent adjustment for higher life expectancies, the percentage of the U.S. population eligible for full Social Security benefits will climb by 2050 to about 20%. In "Adjusting Government Policies for Age Inflation", economists John B. Shoven and Gopi Shah Goda find that historical adjustment of eligibility ages for age inflation would have increased ages of eligibility by approximately 0.15 years a year.

The authors state that, at the time Social Security was created in 1935, an average 65-year-old retiree could expect to live just over 12 additional years; however, by 2004, an average 65-year-old could expect an additional 19 years of life. Accounting for higher life expectancies, "the Normal Retirement Age for Social Security in 2004 would have to be at least 71…and more likely 73 or 74" to be consistent with the retirement age of 65 in 1935, the authors wrote.

Source: Wall St. Journal Blog "Economists Warn of Effects of Age Inflation" (August 19, 2008)

Australia: Businesses Told to End Ageist Practices, Build Skills Training for Older Workers

According to Fran Ferrier, a researcher at Monash University's Centre for the Economics of Education and Training (CEET), if the Australian economy as a whole is to avoid a mass exodus of valuable human capital, businesses will need to be flexible and provide effective skills development for older workers. "There are now few programs specifically for this group and older workers face barriers to participation including ageist employer attitudes."

While the number of people aged 45 to 64 in the workforce has grown substantially, more than 40% of Australians still leave the workforce by age 55 and 80% by age 65, and only 5% are still working at the age of 70. Ferrer says that a key issue is skills: "helping existing workers to update and extend their skills encourages them to keep working."

Ferrer cited research she conducted at CEET with Gerald Burke and Chris Selby Smith to point out that businesses that take action have much to gain. Seven case studies discussed in the study--"Skills development for a diverse older workforce"--of at-work and community-run skills development programs run for, or with a high participation rate, of older people, identified benefits to both the businesses and the individuals involved.

Source: My Small Business"New tricks, not harder ones" (August 14, 2008)

Oklahoma: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Oklahoma, the 13th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Oklahoma: 2004":

• 14.5% of workers were 55 and older, while 3.4% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, with 21.1% of its workers in that age group; and
• the state's health care and social assistance industry employed the greatest number of older workers, with about 15.9% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (August 14, 2008)

Singapore: Tripartite Implementation Group Launches Re-employment Web Portal

Singapore's Tripartite Implementation Workgroup (TIWG) has launched a web portal to help employers and employees get started on re-employment before the reemployment legislation takes effect in 2012. The portal can be found at www.re-employment.sg and it is intended to serve as a one-stop information and resource center for employers and employees on re-employment.

Among other things, the portal includes case studies of companies that have successfully implemented re-employment, lists seminars and workshops on re-employment, and provides information on assistance programs for companies that may require additional resources to implement re-employment. The portal also lists the workforce age profiles of over 250 companies from sectors such as hotels and restaurants, manufacturing and wholesale and retail trade; these companies have voluntarily posted their workforce age profiles on the portal in support of age-friendly and fair employment practices.

Source: Ministry of Manpower News Release (August 13, 2008)

New York: Mature Worker Task Force Issues First Report

New York's first annual Mature Worker Task Force Report to the Governor and the Legislature has been released. The report reflects the Task Force's background research, draft of overarching goals and objectives to frame the work of the Task Force, and identificattion of potential actions to explore with the full Task Force in the upcoming years. This preparatory work will be used as a starting place for the work of the full Mature Worker Task Force, which is scheduled to begin in the fall 2008 when full Task Force membership is anticipated to be in place.

The report identifies the Task Force's overarching purpose: "To improve economic development and the economic security of older adults through opportunities that recognize the value of mature workers and also seek to retain, retrain and offer second careers that will fill anticipated areas where there will be a labor deficit."

With respect to goals, the Task Force will address workforce shortage and workplace flexibility issues, expand employment opportunities for mature workers, and address age discrimination in the workplace. The four primary have been identified as (1) identify best practices for hiring, retaining, and retraining mature workers; (2) identify and address statutory and regulatory provisions limiting opportunities for mature workers; (3) serve as a clearinghouse for information for businesses seeking to hire mature workers and for mature workers seeking employment; and (4) assess effectiveness and cost of mature worker-related programs New York State has implemented.

Source: Mature Worker Task Force Report (July 29, 2008)

Australia: Older Workers Healthier than Non-working Peers

According to an analysis of the 2004–05 National Health Survey by the Australian Bureau of Statistics, older workers had lower rates of heart disease, diabetes, obesity and arthritis than their non working peers. "Health of Mature Age Workers in Australia: A Snapshot, 2004-05" shows that 8 in 10 workers between 45-74 years had a chronic health condition such as cardiovascular disease, diabetes or obesity, compared with 9 in 10 of the non-working population.

Other findings included that mature age workers in capital cities (77%) were less likely to have a chronic condition than those outside of the capitals (83%), and that even with a major health condition, 56% of mature age workers assessed their health as very good or excellent, compared with 31% of those who were not working.

Source: Australian Bureau of Statistics Media Release (July 29, 2008)

Survey: More Companies Are Considering Implementing Phased Retirement Programs

A Hewitt Associates survey of more than 140 mid-size and large employers has found that 55% have already evaluated the impact that potential retirements could have on their organization and 61% have developed or will develop special programs to retain targeted, near-retirement employees. Even though only 21% believe that phased retirement is critical to their company's human resources strategy today, 61% believe so when looking ahead 5 years.

"With the rising tide of boomer retirees, employers will be losing key talent at a time when attracting and retaining skilled workers will be more important than ever," explained Allen Steinberg, a principal at Hewitt Associates. "At the same time, rising medical costs, lengthening life spans and the declining prevalence of traditional pension and retiree medical benefits mean that employees will either have to work longer, save more or live with significantly less than they are accustomed to. As these trends converge, we believe phased retirement programs will continue to become more attractive options for both employers and employees—they provide employers with new ways to retain critical talent and, at the same time, help employees meet their needs."

In addition, the survey finds that 72% of employers said that retaining the experience, knowledge and skills of older workers was the most important benefit to them in offering phased retirement programs. However, 65% said that offering part-time employment (on a year-round basis) represented one of the most effective ways of retaining near-retirement workers.

In addition to focusing on retention, 45% of the employers indicated they currently have policies in place that limit the ability to rehire retirees, but 46 % said they were likely to review their rehiring policies in the future.

Source: Hewitt Associates News Release (July 30, 2008)

Commentary: Proposals to Change U.S. Benefits Laws to Account for Worker Longevity Increases

John Turner, coeditor of "Work Options for Older Americans", has written an article on "Work Options for Older Americans: Employee Benefits for the Era of Living Longer" published in the Third Quarter 2008 issue of Benefits Quarterly. According to Turner, "[m]any of our social policies and employee benefit policies were designed for an era when people had shorter life expectancy," so that "[w]ith the demographic changes occurring, it is time to reexamine those policies to fit the realities of the new demographic era of living longer."

Public policy should provide older people with more choices, rather than fewer. Work effort by the elderly that is all "push" (due to financial need) and no "pull" (due to attractive jobs) is not socially acceptable. Thus, an increase in labor force participation by the elderly that is motivated mainly by a drop in their reservation wages (the minimum wage at which they are willing to work) because of decreases in pension income would not be an acceptable development. Much more acceptable is the idea that workers who may have to supplement their pensions are also induced to work because of attractive wages, employee benefits, flexible work hours or the nonpecuniary aspects of work. Some of the attractive nonpecuniary aspects of work for older people include socialization, structure to the day and self-esteem. Others include shorter hours, greater vacations and greater flexibility in work schedules.

Among other things, Turner suggests that, since it is difficult for workers to collect a pension while phasing out work, the government could take a proactive stance towards flexible employment and provide guidance to employers, who are chary of experimenting under threat of losing their tax deductions. Another suggestion, reflective of increased longevity, to help encourage defined benefit plans, is to allow employers to index initial benefits received at retirement to increases in life expectancy.

Source: Benefits Quarterly "Work Options for Older Americans: Employee Benefits for the Era of Living Longer" (July 31, 2008)

AARP Survey Explores Plans and Motivations for Michigan Seniors Working Past Retirement.

A survey of AARP residents in Michigan finds that retiring comfortably at age 62 is not a reality for many who expect to work well past the traditional retirement age due to increased longevity and rising health care costs. In particular, 36% work full-time and 9% part-time, and 49% consider it extremely (27%) or very (22%) likely that they will continue working beyond retirement. The most common reasons for continuing to work cited were;

• health insurance coverage (54%);
• enjoy working (45%);
• need for extra income (44%); and
• paying for prescription drugs (41%).

The survey also reports that 50% plan to work part-time and pursue hobbies when they reach the retirement age, while 37% intend to work at their current jobs as long as possible. With respect to when they will retire, 23% think they will retire at age 60-64, 37% at 65-69, and 20% at age 70 or older.

Sources: AARP Research Report (July 2008); Battle Creek (MI) Enquirer "Work at 50-Plus: New age of possibility and purpose" (July 1, 2008)

Survey: Employers Looking for Educated Older Workers

A report issued by the Urban Institute suggests that baby boomers looking for jobs in growth fields that welcome older workers "will want to dust off their diplomas rather than their treadmills" since most of the fastest-growing occupations that already employ above-average shares of workers age 55 and older rely on an educated workforce. The report also discusses the personal and social benefits of increased work by older adults and the reasons why boomers are likely to try to work longer than earlier generations and examines whether employers will want older workers and how changes in the nature of work, demands for different occupations, the characteristics of older workers, and overall labor force growth will affect the future demand for older workers.

According to the study--"Will Employers Want Aging Boomers?"--by Gordon B.T. Mermin, Richard W. Johnson, and Eric J. Toder, employers value older workers for their maturity, experience and work ethic, but worry about out of date skills and high costs. Future jobs will require less physical demands and more cognitive and interpersonal skills, trends that favor educated older workers, but job opportunities for less educated older workers may remain limited.

The faster growing areas that require education include personal financial advisors, veterinarians, social and community service managers, surveyors, environmental scientists and geoscientists, registered nurses, and instructional coordinators. The list also includes postsecondary teachers, archivists and curators, social workers, management analysts, pharmacists, counselors, and business operation specialists. The fastest-growing area friendly to senior workers is personal and home care aides. Other categories that depend less on academic credentials include usherers, animal trainers, locksmiths, and brokerage clerks.

In their conclusion to the complete discussion paper, the authors recommend that, in order to promote employment at older ages, policymakers might consider the following steps to increase demand for older workers:

• make Medicare the primary payer for workers with employer-provided health insurance;
• reduce legal uncertainties surrounding formal phased retirement programs;
• allow in-service distribution of defined benefit pensions at age 59 1/2;
• better target government training and employment services to older workers; and
• take steps to increase employer awareness of the value of older workers.

Source: Urban Institute Press Release (July 23, 2008)

Research: How Older Workers Value Employee Health Insurance

An issue brief published by the Center for Retirement Research at Boston College analyzes data from the Health and Retirement Study (HRS) to compare the value that workers place on health insurance with their perceptions about the cost of coverage. In particular, in "How Much Do Older Workers Value Employee Health Insurance?", that authors--Leora Friedberg, Wei Sun, and Anthony Webb--sought to compare cost with willingness-to-pay by those without insurance and those without.

The authors' analysis revealed "substantial differences between the valuations that the currently insured place on health insurance and the amount that the currently uninsured would be willing to pay in order to obtain coverage." However, while the "average willingness to pay among the uninsured is less than the likely cost of providing coverage, moderate targeted subsidies might generate substantial take-up under a voluntary program, while reducing the number of households made worse off under a mandatory program."

Source: Center for Retirement Research at Boston College Brief IB#8-9 (July 11, 2008)

U.S. Bureau of Labor Statistics Spotlight Highlights Trends towards More Older Workers

The U.S. Bureau of Labor Statistics (BLS)has issued a spotlight on older workers, finding that between 1977 and 2007, employment of workers 65 and over increased 101%, compared to a much smaller increase of 59% for total employment. For men over 65, the increase was 75%, but for women it was 147%. In addition, BLS notes that while the number of employed people age 75 and over is relatively small (0.8% of the employed in 2007), they had the most dramatic gain--increasing 172% between 1977 and 2007.

Among other topics addressed by the BLS reports:

• This increase does not just reflect the aging of the baby-boom population, since none had yet reached age 65.
• While part-time work among older workers began trending upward from 1990 to 1995, that trend has had a marked reversal with full-time employment rising sharply, with the number of older workers on full-time work schedules nearly doubling between 1995 and 2007 and the number working part-time rising just 19%; full-timers accounted for a majority among older workers, with 56% in 2007, up from 44% in 1995.
• In 1977, about one-third of employed women 65 and older were married, but by 2007, married women accounted for nearly one-half of these workers.

BLS expects the growth in employment to continue. During the period 2006-2016, workers age 55-64 are expected to climb by 36.5% and the number of workers between the ages of 65 and 74 and those aged 75 and up are predicted to soar by more than 80%.

BLS also provides an audio file of this report.

Source: U.S. Bureau of Labor Statistics "Spotlight on Older Workers (July 2008)

Japan: Retention of Older Workers Becoming More Difficult with Changing Evaluation Systems

A Japan government white paper has been released finding increased unhappiness among Japanese workers who have complaints over pay, lack of vacations and a decline in morale. Among other things, the paper also reports that retaining older staff has been a challenge for companies trying to avert a labor crunch.

According to a Reuters story on the paper, "older workers were switching jobs because they failed to get along with colleagues or were unhappy with how they were being evaluated at companies using performance-based management."

Under Japan's traditional lifetime employment system, employees were guaranteed promotions and pay increases as they grew older, regardless of performance.

"For an effective performance-based system, efforts are needed to improve the implementation of the wage system, such as making clear the basis for evaluation and providing detailed explanations for the assessments," the white paper said.

Source: Reuters "Japanese workers more unhappy, government report says" (July 22, 2008)

Book Review: "Working Longer: The Solution to the Retirement Income Challenge"

According to a New York Times book review of Working Longer: The Solution to the Retirement Income Challenge, overworked, underpaid, aging baby boomers may have no choice but to work longer and retire later if they want to avoid a precipitous decline in our accustomed standard of living. Hunter Hurt III refers to the book by Alicia H. Munnell and Steven A. Sass as "thought-provoking" (albeit "if sometimes cloistered academic terms") and as defining "succinctly the problem faced by baby boomers, and for that matter, by all Americans who aspire to retire now or in the near future."

The authors contend that working longer and retiring later can generate powerful benefits for aging baby boomers and the workers in their wake. First, it would delay the need for people to tap into I.R.A.’s and 401(k)’s, thereby swelling their total assets and increasing the future income they can produce.

Second, it would help maximize the benefits of Social Security, which are about one-third higher for recipients who are 66 than for those who are 62.

Source: New York Times "Who Wants to Retire Later? (Don’t Laugh)" (July 20, 2008)

Governors Association Encouraging States To Engage Seniors in Volunteering and Employment

New York has been selected by the National Governor's Association as one of six states to participate in a Policy Academy sponsored by the Association that will address issues related to engaging the elderly in volunteering and employment opportunities in the future. According to the Center for Best Practices of the National Governors Association, the goal of the initiative is to improve the health and lives of older Americans by substantially increasing the proportion of seniors who participate in employment, education and training, or meaningful volunteer activities. Idaho, Illinois, Maryland, Massachusetts, and Pennsylvania are the other states being awarded grants.

The goals of the team appointed by New York Governor Patterson are to:

• Develop a strategic plan to increase employment and volunteer opportunities for older adults.
• Ensure that older adults can age with dignity and respect in their communities with volunteer support from their peers.
• Create a unified communication strategy and educational campaign to promote civic engagement among older New Yorkers and highlight the benefits and contributions they can make in the work force and voluntary endeavors.

Sources: New York State Office for the Aging Press Release; Watertown Daily Times "Grant to help older workers find volunteer and paid jobs" (July 21, 2008)

Survey: Older Workers Happier than Younger Workers

Vodafone UK has released survey results that older people are the happiest and most motivated workers in Great Britain, with satisfaction levels soaring above those in their twenties, thirties and early forties. According to "Working Nation 2008: The Nature of Work", 97% of those working beyond 65 feel "enabled" in their work (compared to just 61% of 31-35 year olds), seven out of ten workers of 50 and over say they are fulfilled, with just half of 25-31 year olds saying the same, and satisfaction levels peak at over 90% among the oldest age group (65 and over).

As was noted in the introduction to this report, there is a widespread assumption prevalent today, as illustrated by the CMI Management Futures report, that technology will fundamentally change the world of work over the next ten years. Attendant to this assumption is the feeling that the consequence of this change will be that young people will be handed an unprecedented advantage, allowing them to leapfrog older generations into positions of power and create hitherto undreamed of new business opportunities.

This report serves to temper that view with the perspective of older generations, bringing to the fore the human factors that in many ways cannot be substituted or replaced, regardless of technological innovations.

In addition to issuing the report, Vodafone has created a Working Nation blog for additional follow-up.

Source: Vodafone UK Press Release (July 17, 2008)

Denmark: Study Reports Growth in Employment among People 60 and Older

According to an English summary posted on eSangathan.com, a report prepared by Denmark's Economic Council of the Labour Union ("Arbejderbevægelsen Erhvervsråd") shows that, among the employed people over 60, the number of persons employed have gone up with 45.000 persons since 2004. The highest growth has been in the group of people age 60-62, while, compared to the size of the workforce, the highest percentage has been for people age 65, where the growth has been from 8.000 to 13.000 in three years.

The Council's report suggests that this growth is not only due to the higher number of people in that age group, but rather that there it represents a change in behavior among these people--they have simply chosen to stay longer at the labor market.

Full report in Danish is also available.

Source: eSangathan.com "Great growth in work frequency among elders in Denmark" (July 17, 2008)

France: Prejudice against Older Workers May Create Business Opportunities

According to a brief note in The Economist, a French employment agency (Experconnect) is attempting to take advantage of the French youth culture to place place retired people in work opportunities.

France has a poor record when it comes to keeping older people in the workforce. The retirement age is 60, not 65 as in most developed countries. In 2005 only 37.8% of people aged 55-64 had jobs, versus 56.8% in Britain and 44.9% in Germany. The main reason is that in the 1980s, when there was high unemployment, the government promoted early retirement. That entrenched the idea that older workers were less productive, says Caroline Young, Experconnect’s founder.

Unlike most employment agencies, however, Experconnect keeps its workers on its own books, so they can carry on drawing their pensions. Accordingly, they tend to work part-time on one-off projects.

Source: The Economist "Jobs for the old " (July 17, 2008)

EBRI Survey Suggests Ways Employers Can Encourage Workers To Postpone Retirement

According to results of conducted by the Employee Benefit Research Institute (EBRI), employers have a narrow window of up to two years in which they may be able to change retiring workers’ decisions by offering them incentives to remain with the company.

The "EBRI 2008 Recent Retirees Survey: Report of Findings" surveyed 4,981 workers in aerospace and defense industry companies who retired in 2003 or later and are currently between the ages of 55 and 65. Among other things, EBRI reports that many retirees would have been open to an approach from their employer asking them to stay longer with the company: 61% would have viewed the experience positively, while only 10% indicated they would have reacted negatively to an approach asking them to delay their retirement.

With respect to 19 possible incentives that might encourage retiring workers to postpone retirement, EBRI found that three appeared especially likely to be successful:

• feeling truly needed for an assignment;
• for retirees with a defined benefit pension, receiving a full pension while working part;
• being able to work seasonally or on a contract basis.

Source: EBRI Press Release (July 10, 2008); Issue Brief #319 (July 2008)

Kentucky: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Kentucky, the 12th state to be released in the series.Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Kentucky: 2004":

• 12.8% of workers were 55 and older, while 2.7% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, but no industry had more than 20% of its workers in that age group; and
• the state's manufacturing industry employed the greatest number of older workers, with about 19.3% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (July 14, 2008)

Survey: Age Discrimination Leading Form of Workplace Discrimination

A survey of what U.S. workers think of diversity has found that, while 61% of workers agree that having a diverse workforce makes their organization more successful, 47% of employees have felt discriminated against at the office, with age cited as the top form of workplace discrimination. According to Adecco USA, 52% of those workers who have experienced discrimination at the office reported age as the basis for discrimination, followed by gender (43%), race (32%), religion (9%), and disability (7%).

With respect to diversity generally, the survey found that only 34% of U.S. workers believe that corporate America has achieved total workforce diversity, and 78% feel that having a diverse workforce is something that most companies publicize more than they actually implement. For employers looking to further strengthen their diverse workforce, Adecco suggests (1) giving senior management commitment, (2) engaging employees in the process, (3) supporting local/community diversity groups, (4) providing diversity training, and (5) promoting open communication.

Source: Adecco News Release (July 10, 2008)

Survey: Corporations Falling Down on Knowledge Transfer Practices

According to the Institute for Corporate Productivity (i4cp), only 29% of responding organizations report that they incorporate retirement forecasts into their knowledge transfer practices. Furthermore, i4cp found that only a third add "skills gap analysis" into those forecasts, less than half say they train their managers to identify critical skills, only 23% are educated in critical skills transfer, and most companies admit they do not formally measure the effectiveness of their knowledge transfer practices.

"For all the public gnashing of teeth about the impending retirement of all those knowledgeable, hard-working Baby Boomers, relatively few organizations are doing much about it," says Jay Jamrog, SVP of research at i4cp. "They're going to wind up in a mad bar-the-doors scramble in the near future if they don't start trying to tap the knowledge of their most knowledgeable Boomers."

The i4cp survey--"Taking the Pulse: Productivity/Efficiency" (available to i4cp members only)--reports that training is the most conventional way to transfer knowledge in organizations (82% reporting it as an ongoing practice), followed by coaching (55%), and mentoring programs (44%). In addition, there was little consensus about which part of the organization handles the management of knowledge transfer initiatives with 41% saying the initiatives are "managed individually by different business sectors," 39% reporting that initiatives are handled by corporate, and 20% using a combination of corporate and business-sector options.

Looking to the future, the study found that there are a number of up-and-coming practices in use and being considered. "Communities of Practice" are utilized by a third of all responding companies to transfer knowledge, and the use of Webcasts and services such as "Lunch and Learn" and "SharePoint" are on the rise.

Source: Institute for Corporate Productivity Press Release (July 9, 2008)

Australia: "Mature Workers Mean Business" Campaign Launched

Australia's Human Rights and Equal Opportunity Commission (HREOC) has launched a new community education campaign aimed at busting the myths and stereotypes about mature age workers. Under the rubric of "Mature workers mean business," the HREOC will use a range of print advertisements and web-based material to highlight the benefits of mature age workers and to address discrimination in this area.

According to Federal Commissioner responsible for Age Discrimination Elizabeth Broderick, many older participants in a recent national tour raised age discrimination as a barrier to full and equal participation in the workplace and many other aspects of life.

"Some people told me that ageist assumptions and attitudes heavily impacted on their ability to find meaningful work, including misconceptions about being able adapt to change or wanting work at senior levels," said Ms Broderick. "Others recounted the barriers they faced in other areas of life, such as accessing public spaces or being awarded driver’s licences."

HREOC has created a Mature Workers Mean Business website, which, among other things, showcases stories from the workplace featuring older workers and their employers, debunks common myths about older workers, and offers strategies to attract and retain mature workers.

Source: Human Rights and Equal Opportunity Commission Media Release (July 7, 2008)

France: Government Announces New Measures on Employment of Older Workers

Christine Lagarde, Minister of Economy, Industry and Employment, Xavier Bertrand, Minister of Labour, social relations, family and solidarity, and Laurent Wauquiez, Secretary of State for Employment, have announced a series of measures adopted at the end of the consultation with social partners on the employment of older workers. The main objectives are to:

• encourage businesses and industries to conclude agreements to keep or recruit older workers,
• encourage older people to extend their work beyond 60, and
• promote the return of seniors to work.

One of the principal means of pushing the agenda will be to require businesses and industries that have not concluded agreements on age management and employment of older workers by December 31, 2009 to begin paying additional retirement contributions in 2010. In addition, the ministers stated that age should no longer be a reason for an employer to terminate the employment contract.

To encourage workers to stay in the workforce, the measures call for allowing
cumulative employment and retirement without restriction at age 60 if on full retirement and at age 65 in all cases and for the elimination of the six-month waiting period for resuming work with the same employer.

Source: Ministère de l'Économie, de l'Industrie et de l'Emploi Press Release (June 26, 2008)0

United States: Economic Downturn, Labor Market, and Older Workers

In an RGE Analysts' EconoMonitor written by Arpitha Bykere about what labor market numbers are showing about the United States as the economy is slowing, some attention if focused on older workers and their labor participation rates. The unemployment rate started rising for older workers since December 2007, and Bykere suggests that during the recovery many older skilled workers may not return to the labor market.

Labor participation rates (LRP) for older workers have been somewhat of a surprise is recent years. "Due to the rising share of 55+ age group in the labor force and population, their LPR and total LPR in the economy was expected to decline." Instead the LRP for the 55+ group has been increasing since 2001. Among possible reasons, Bykere cites rising life expectancy, improved health condition, ability to get higher Social Security benefits by deferring retirement, ability to work after 65 without losing benefits, and need to maintain employer health insurance.

With respect to future labor market implications, Byykere writes:

Like the last recovery, many jobs may again disappear, LPR for teens and women may decline further while older workers depending on their skill level may or may not return to the labor force. There are also concerns that if the current recession is prolonged or subject to a slow recovery, it might lead to significant job losses, pushing up the unemployment rate to higher than expected levels. These factors along with retiring baby boomers will have important implications for the future growth in labor force, job creation and productivity growth as well as the long-term potential output, natural rate of unemployment. This is especially true as the recent recovery failed to take the economy to full-employment.

Source: Roubini Global Economics, LLC. (RGE) "U.S. Labor Market Dynamics Amid a Slowing Economy" (July 3, 2008)

France: Boomers Want To Retire at Normal Retirement Age

A survey commissioned by the Union Mutualiste Retraite (UMR) focusing on how employees aged 45 and over are thinking about their retirement, these baby boomers are seen asworried and not necessarily very well organized or informed: 80% say they feel worried about their retirement and 27% said they were very worried. However, regardless of how ready they are financially, most employees aged 45 and over do not want to work more to earn more after retirement.

According to UMR, the majority of boomers (60%) would continue to work for the minimum number of years required by law to receive a full pension. And many of the others, want to work less than that, even if it means getting less that a full pension.

Source: Union Mutualiste Retraite Press Release (June 17, 2008)

Survey: MetLife Reports that Pre-Retirees Overestimate Retirement Moneys and Underestimate Retirement Length and Needs

According to research conducted by MetLife, 69% of pre-retirees overestimate how much they can draw down from their savings, with 43% saying they believe they can withdraw 10% or more each year while still preserving their principal, even though most retirement experts suggest a withdrawal rate of no more than 4% annually. In addition, 60% underestimate life expectancy and 49% underestimate the amount of pre-retirement
income they’ll need once they retire.

These results are reported in MetLife's 2008 Retirement Income IQ Test, released five years after its MetLife’s first Retirement Income IQ Test. Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute said that “While we would have liked to have seen more dramatic increases in the scores, directionally
Americans are improving their retirement income IQs."

"Yet, there are still far too many misconceptions about retirement income issues," added Timmermann. "Most concerning is the fact that so many pre-retirees overestimate how much they can spend down from their retirement savings annually. This statistic should serve as a wake-up call for pre-retirees and advisors alike."

Source: Press Release (June 25, 2008)

Businesses Deal with New Safety Challenges as Workforce Ages

According to loss control experts from Chubb Group, as the number of employees over the age of 55 continues to rise, businesses are faced with the challenge of retaining these valuable workers while reducing health- and injury-related losses. Conducting a session on "The Aging Workforce-It's Not Just Ergonomics" at the American Society of Safety Engineers' (ASSE) Professional Development Conference and Exposition ("Safety 2008"), Tina Minter and Russell Dronne noted that while Bureau of Labor Statistics studies show that injury rates among older workers are lower than those of their younger counterparts, other factors can contribute to increased health and safety exposures: age-related chronic disorders and diseases; loss of hearing; impaired vision; and physical and cognitive limitations.

Miner said that businesses can help mitigate their losses by improving policies and workplace design to allow employees to continue to work in a safe and healthy environment. Among other things, she provided examples of what businesses can do to address each of these risk factors, including:

• allow for flexible work hours so that those with poor night vision can adjust their start and finish time to coincide with daylight hours;
• encourage employees to use the health care system for preventative well visits;
• eliminate heavy lifts, elevated work from ladders and long reaches;
• encourage employees working at a computer to take small breaks every 30 minutes;
• don't rely on sound as the sole means of emergency communications, as employees with hearing loss may not hear announcements.

Source: Chubb Group Press Release (June 19, 2008)

Maryland: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Maryland, the 11th state to be released in the series.Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Maryland: 2004":

• 14.6% of workers were 55 and older, while 3.4% were 65 and older;
• the mining industry was the only industry to have more than 20% of its workers 55 and over (20.6%); in metropolitan areas, the educational services industry had the the largest percentage of workers 55 and older (25.5%); and
• the state's health care and social services industry employed the greatest number of older workers, with about 15.2% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (June 19, 2008)

Survey; Unlocking Clues to "Encore" Careers among Boomers

A survey of people aged 44 and 70 estimates that between 5.3 and 8.4 million Americans have already launched "encore careers"--positions that combine income and personal meaning with social impact--and that half of those not already in encore careers, half are interested in them. The "2008 MetLife Foundation/Civic Ventures Encore Career Survey," conducted by Peter D. Hart Research Associates, Inc., finds that a majority of Americans in this age bracket express a desire to use their skills and experience to help others and, of those currently in encore careers, 84% report a high level of satisfaction and 94% say they see the positive results of their work and know they are making a difference.

"This is the first national survey to uncover evidence that the encore career is more than an appealing idea," said Marc Freedman, founder and CEO of Civic Ventures, a think tank on boomers, work and aging. "Unexpectedly large numbers of boomers are looking for purpose-driven jobs that provide them with both means and meaning. That’s great for them and great for the rest of us, too. As this research shows, they are applying their skills and passions to the very public interest fields that need them most."

The jobs of special interest to those looking to encore careers are in education, health care and the nonprofit sector. Among other findings in the report, most respondents interested in encore careers are worried that these positions may be hard to find and may not meet their needs--80% expressed concern about having the flexibility to take time off and a majority were worried about having adequate income and benefits. However, respondents currently in encore careers reported few problems with these same issues.

Most of those in encore careers come from professional and white-collar jobs (88%), have at least a college education (67%), and tend to live in cities and their surrounding suburbs (72%). Most (60%) are leading edge boomers between the ages of 51 and 62. Most (56%) are women. But the research also reveals diversity in the ranks. Of those in encore careers, three in 10 never graduated from college, three in 10 live in small towns and rural areas, and nearly two in 10 (18%) worked in a blue-collar job before making the switch to an encore career.

In addition to publishing the report, Civic Ventures has provided a number of supporting articles and commentaries.

Source: Civic Ventures News Release (June 18, 2008)

Hungary: Looking to Raise Average Retirement Age without Changing Pension Age

According to news reports, Hungary's government has rejected opposition calls to raise the pension age. Lajos Korózs, State Secretary of the Welfare and Labor Ministry, who also holds office as the National Council for Senior Citizens, said at a news conference that the government is aiming to raise the average age at which Hungarians retire or take earlier retirement.

While Hungary’s pension age is currently 62, Korózs said that, because of the number of people who take early retirement, the average age when Hungarians stop working is 58.6. It would like to focus on "cranking up this figure and bringing it closer to 62." In the view of the government, the proposal of opposition leader Fidesz to increase state pensions by no more than the inflation rate each year is unacceptable, Korózs emphasized.

Sources: BBJ "Hungary: No plans to raise pension age" (June 18, 2008); Portfolio "Retirement age hike unlikely in Hungary, State Secretary says" (June 18, 2008)

Survey: Affluent Boomers Stay in Workforce, Retain Mortgage Debt

According to Bell Investment Advisors's third annual survey of affluent boomers (those with investible assets of $1 million or more), members of the baby boom have no plans to leave the workforce any time soon and, in a major change from the prior generation when a major goal of retirement was to "burn the mortgage," more than 55% of surveyed boomers who currently hold mortgages do not plan to pay their mortgages off until their 70s.

With respect to retirement plans, 76% of boomers surveyed who are still working plan to continue working after age 62, and 40% plan to continue working into their 70's. For 72%, the major reason to continue working was for the "intellectual and social stimulation" work provides; 51% cited the goal of maintaining standard of living, and 41% the goal to avoid tapping into savings.

Of those taking the survey, 29 percent describe themselves as being retired in the conventional sense, while 71 percent are still employed. Of those currently working, the largest number or nearly a quarter (23%) hope to work as long as they are able to, followed by 20 percent who plan to gradually scale back; another 20 percent who plan to pursue personal interests and passions, and 18 percent to work part-time, with six percent exploring alternative careers.

Source: Bell Investment Advisors News Release (June 10, 2008)

Bulgaria: Age Discrimination Resulting in Large Number of Older Unemployed

According to news reports, Veselin Ilkov, head of a Department in Bulgaria's Ministry of Labor and Social Policy, believes that 46% of the unemployed in Bulgaria between 50 and 60 years have no work exactly because of their age. Ilkov proposes that an employer ethic codex be accepted not to allow age discrimination.

Although since 1 October 2006 there is law against the age discrimination, there still are many employers in Bulgaria who use the advance in years as excuse for dismissing or eliminating by competition for vacation work place a person, without taking under consideration the worker's qualification and skills.

Sources: News.bg "Half of the Unemployed Over 50 Years--Discriminated" (June 13, 2008); FOCUS "Veselin Ilkov: Employers often eliminate older people, applying for a position" (June 13, 2008)

Study: Boomers Can Boost Savings and Economy by Postponing Retirement

A study by McKinsey Global Institute (MGI) finds that while a vast majority of U.S. Baby Boomers are unprepared for retirement, "enabling them to work longer would significantly benefit both individuals and the broader economy." However, for this to happen both policy makers and business leaders will need to take action. Specifically, by increasing the median retirement age by about two years--from the current 62.6 to 64.1 by 2015—-the share of unprepared boomer households could be halved from 62% to 31%, and the additional workers would boost real GDP growth.

Working longer will generate $12.9 trillion more gross domestic product (GDP) between now and 2025 than would occur under the baseline forecast.

MGI's survey of Boomers' attitudes on retirement shows that 85 percent expect to work later in life. However, there are significant legal and institutional barriers that need to be overcome. They include a variety of disincentives for both employers and older workers, including the costs of America's health care system, the unintended consequences of labor laws and pension regulations, and corporate attitudes toward older workers. The research highlights several areas for action for policy makers and businesses to prevent the Boomers' retirement from becoming a multidecade-long drag on U.S. growth.

Source: McKinsey & Company "Talkin' 'bout my generation: The economic impact of aging U.S. Baby Boomers" (June 2008)

Italy: Pension Proposals of Berlusconi Government

Proposals by the Italy's former Prodi-led government to phase in an increase in retirement ages and number of pensionable years held from 57 to 60 in 2010 will not be scrapped, although Maurizio Sacconi, Italian welfare minister, described it "an onerous mistake" of the previous government. According to news reports, "Sacconi wants to start using the new 'coefficients' or ratios through which pensions will be calculated as a function of contributions, from as early as this autumn, rather than the 2010 date set by Prodi's government."

In addition, Sacconi wants to narrow significantly the definition of "fatiguing" jobs or manual labor employment which officials believe allow people to retire at an earlier age. He also is encouraging greater attention to private pensions and has proposed setting up a European commission on pensions, with the specific objective of identifying a general strategy, capable of promoting development and re-direct towards patterns of growth.

Sources: IPE.com "New Italian government alters pension plans" (June 11, 2008); AGI News "Pensions--Sacconi: Right To Set Up A European Comparison" (June 7, 2008)

Progress of eSangathan in Including Aging Workforce in the Information Society

In advance of an official report on the results of the eSangathan Conference "Impact of Information & Communication Technology on Ageing Workforce" held in Mumbai in April 2008, a couple articles are providing some insight into progress being made in extending the working-life and knowledge services of aging workers by using information and communication technology (ICT). The eSangathan project funded by the European Union is, among other things, experimenting with two pilot projects in India over the benefits that aged workers could draw from collaborative tools for remaining longer in the work force, with good working conditions.

In an interview covering e-inclusion efforts, Dr Andrew Sors, Head, Science & Technological Development, Delegation of the European Commission in India and a participant at the conference said:

A good example of the impact of ICTs on the ageing workforce was discussed at the e-Sangathan conference. Indeed, through the use of technology, retired knowledge workers are able to keep working on projects if they wish to do so.

They can work from home, don’t need to travel but are able to remain active for longer and this has an extremely positive impact on their lives.

Mr. Ashank Desai, Chairman, Mastek Limited & President of the National Association of Software and Service Companies (NASSCOM) , informed the delegates of the importance of collaboration as eSangathan for about 60 million senior citizens in India:

"The country is experiencing a growth rate of 8-9 percent, faces a shortage of talent, and the workforce spectrum could be widened by the inclusion of the aged population to leverage the talent system".

Sources: i4d (Information for Development) "Including the aged in mainstream workforce" (May 2008); The Hindu Business Line "Bringing Silver surfers into the Web" (June 9, 2008)

Report Tracks Governmental Action on Workplace Flexibility

A report prepared by Institute for Women’s Policy Research (IWPR) and the Center for WorkLife Law at the University of California Hastings College of the Law reviews actions being taken by 21 high income countries aimed at increasing workers’ ability to change their working hours and arrangements to balance work and family, and facilitate lifelong learning and gradual retirement. According to "Statutory Routes to Workplace Flexibility in Cross-National Perspective", high-quality flexible work arrangements are still the exception in the U.S.

While the IWPR is primarily focused on laws enabling women to remain in the workforce, it found that 11 of the 21 countries surveyed allow reduced hours with partial pension prior to full retirement. Thus, for example, in Finland, from age 58 onwards, a reduction of usual full-time hours between 30% to 70% is possible with partial pension payments.

Source: Institute for Women’s Policy Research News Release (May 28, 2008)

Older Workers Face Increased Health Risks from Past Exposure to Lead

Researchers from the University of Pittsburgh's Western Psychiatric Institute and Clinic have published the results of a study showing that older workers with past occupational exposure to lead face increased risk for recirculation of lead into their bloodstreams later in life. As published in the Archives of Environmental and Occupational Health, the article--"Past Occupational Exposure to Lead: Association Between Current Blood Lead and Bone Lead"--found that that lead stored in bone is a significant source of blood lead later in life and that older workers with past occupational exposure may face a particular risk for recirculation of lead in blood with advancing age.

Medical News Today quotes lead author Lisa A. Morrow, Ph.D., associate professor of psychiatry and psychology at the Institute, as saying that the study "found that even workers with no current workplace exposure to lead--but who have had considerable past exposure--show increasing levels of lead in their blood as they age." The other authors are Herbert Needleman, M.D., Christine McFarland, Kim Metheny and Michael Tobin.

Source: Medical News Today "Risks From Occupational Lead Exposure Last A Lifetime, Pitt Study Finds - Combination Of Age And Early Exposure To Lead Significantly Increase Risk" (May 26, 2008)

New Jersey: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on New Jersey, the tenth state to be released in the series.Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in New Jersey: 2004":

• 16.6% of workers were 55 and older, while 4.0% were 65 and older;
• the mining industry had the highest proportion of workers 55 and over (22.2%), followed by manufacturing (21.1%), educational services (21.0%), and real estate and rental and leasing (20.8%); and
• the state's health care and social services industry employed the greatest number of older workers, with about 14.8% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (May 27, 2008)

Canada: Survey Suggests Quebec Workers' Retirement Plans Not in Sync with Employer Needs for Older Workers

Even though organizations are facing labor shortages, 38% of Québec workers say they plan to retire before age 60, and 61% plan to retire between the ages of 55 and 64. These are some of results of a survey conducted by the Centre de Recherche sur l'Opinion Publique (CROP) for the Ordre des CRHA et CRIA du Québec (ORHRI). The survey showed that 15% of workers plan to retire at 65 to 69, 5% at 70 or older, and 5% with no plans to retire.

“In today’s environment, older workers represent a labour pool that employers can no longer do without. That’s why it’s crucial to review management practices to encourage willing pre-retirees to stay on the job as long as possible. Organizations need their valuable expertise,” explained Florent Francoeur, CHRP, Ordre President and CEO.

Workers were also asked about phased retirement, and 53% favored phased retirement, versus 41% who preferred complete retirement.

“The fact that only half the workers are considering phased retirement is of some concern. Yet people are now healthier and living longer than previous generations. So we have to create conditions to increase the numbers of workers who opt for phased retirement. For example, we could adjust benefits and compensation policies, and reorganize work within organizations,” added Francoeur.

Source: Ordre des CRHA et CRIA du Québec Press Release (May 22, 2008)

Reality Check: Survey Shows Retail Industry Hires Most Older Workers

Maria L. La Ganga,writing for the Los Angeles Times, reports that an Urban Institute study due to be published in June 2008 shows that the retail industry employs more older Americans than any other, with nearly 350,000 men and women 65 or older earn paychecks in U.S. stores. "In fact, the nation's stores employ more people 65 and over than the next two occupations [farming and janitorial work] combined, which worries some advocates who are trying to encourage the federal government, the country's biggest corporations and other employers to keep older workers on the payroll.

In introducing her readers to some examples of older workers in the retail industry, La Ganga does capture the sense that this is not the result many have expected in the field:

"These are not exactly the pictures of reinvention that you get in your monthly issue of Fortune, Money or AARP magazine," said Marc Freedman, author of "Encore: Finding Work that Matters in the Second Half of Life." This is "an object lesson in the dangers of what could happen if we don't develop a compelling human resource strategy for an aging society."

But though Freedman worries that "the golden years are being transformed into the Wal-Mart decade," he does acknowledge that the retail industry provides benefits, flexibility and jobs, particularly for less-educated workers.

Source: Los Angeles Times "Just one word for older job-seekers: retail" (May 23, 2008)

Book: How a Few Additional Years in the Labor Force Can Make a Big Difference.a Retirement

The Brookings Institution Press has announced the release of Working Longer: The Solution to the Retirement Income Challenge by Alicia Munnell and Steven Sass, the director and associate director of the Center for Retirement Research at Boston College. According to the publisher, amid all the calls to fix Social Security, shore up employer pensions, and redesign 401(k) plans, the auhtors suggest that the most effective response to the retirement income challenge lies in remaining in the workforce longer: "By staying on the job for another two to four years, retirees in 2030 can be as well off as those in the current generation."

Working Longer investigates the prospects for moving the average retirement age from 63, the current figure, to 66. The authors ask whether future generations of workers will be healthy enough to work beyond the current retirement age, as well as whether older men and women are willing to do so. They examine companies’ incentives to employ older workers and ask what government can do to promote continued participation in the workforce. Finally, they consider the challenge of ensuring a secure retirement for low-wage workers and those who are unable to continue to work.

A summary of the book is available, as well as the authors' list of 10 myths and realities about working longer.

Source: Brookings Institution Press Book Announcement (May 2008)

For other books on older workers and the aging workforce, see The Aging Workforce News Book Store.

Survey: Crossgenerational Interaction Rare in the Workplace

Ranstad USA has released its annual look at the workplace and, among other things, reports that the different generations in the multigenerational workforces--Gen Y, Gen X, Baby Boomers, and Matures--have different definitions of experience, sharing and no consistent way to understand what each other has to offer. In its survey of 3,494 adults, 2008 World at Work shows that 51$ of the Boomers and 66% of the older "Matures" report little to no interaction with their younger colleagues.

Among the learnings shared by Ranstad:

• The transfer of knowledge between retiring generations of veteran workers and newer entrants to the workforce is unlikely.
• Perceptions of co-workers, particularly those in Gen Y, are based largely in stereotypes.
• Each generation sees itself as bringing different strengths to the workplace that don’t enhance or expand the strengths of those older or younger.

Source: Reuters Life!"Workers of different ages don't chat enough: survey" (May 21, 2008)

Ohio Establishes Senior Civic Engagement Council

Ohio Governor Ted Strickland has established the Ohio Senior Civic Engagement Council to work to enhance volunteer, educational and employment opportunities for older Ohioans. Strickland said that "[t]he Council will work to keep them active and engaged in their communities and careers, as well as help employers prepare for changing workforce needs."

Among other things, the Council will coordinate with the Ohio Workforce Policy Board regarding senior employment policies and activities, collect data about the engagement of older adults in employment, and promote policies that enhance job opportunities available to older Ohioans. In addition, it will help business leaders and the workforce development system prepare for and offer services to Ohio’s growing number of older workers.

Source: Ohio Office of the Governor Press Release (May 20, 2008)

Additional Source: The (Lorain, OH) Morning Journal "Senior civic engagement council smart new policy to help Ohio move ahead" (May 21, 2008)

Research: Rising Health Care Costs Linked to Delayed Retirement

The Urban Institute's Retirement Policy Program has published a research article showing that older workers who expect high health care costs for themselves or their spouses after age 65 retire about later than those who expect low costs--13 months later if the worker is a man, 12 months later if a woman.

As Richard W. Johnson, Rudolph G. Penner, Desmond Toohey, the authors of "Rising Health Care Costs Lead Workers to Delay Retirement" point out, for those receiving health insurance from their employers, continued work reduces the risk of high out-of-pocket health care costs and increases retirement incomes--by raising earnings, boosting Social Security and employer sponsored pension wealth, improving the ability to save, and reducing the years over which retirement wealth must be spread--and therefore makes health care costs more affordable.

Source: Urban Institute Publication Release (May 18, 2008)

Singapore: Unions Track Employer Commitments to Rehiring Older Workers

The National Trades Union Congress (NTUC) has established a four-tier framework to let unionized employers understand where they are in getting on track with respect to when Singapore's reemployment legislation kicks in come 2012. According to the NTUC, 433 out of the 1000 unionised companies have committed, at varying levels, with a total of 3910 older workers having been re-employed.

Under the NTUC's framework, a company can be categorized at on of four levels of commitment to reemployment:

• Level 1 refers to companies that are already reemploying older workers, but on an ad-hoc basis.
• Level 2 refers to companies that are already reemploying older workers and have a reemployment clause in their agreements with unions.
• Level 3 refers to companies that have a formalized HR policy on re-employment.
• Level 4 refers to companies that are pro-actively seeking out new initiatives to ensure that their re-employment efforts are sustainable and scalable.

Of the 433 companies committed to reemployment policies, 15% have in place a formalized HR policy, and the NTUC is working to encourage the other 85% to follow suit, so as to increase the proportion of companies at Levels 3 and 4.

Source: NTUC Press Release (May 13, 2008)

Older Workers Hold More Employer Securities in 401(k) Plans

According to a report issued by Financial Engines assessing how well Americans are handling their 401(k) plans, older plan participants are more likely to have high company stock concentrations. In particular, the report--The Financial Engines National 401(k) Evaluation--found that 43% of those over age 60 hold more than 20% of their 401(k) portfolios in company stock, compared to only 28% percent of those under age 30.

The report found similar trends with regard to higher concentrations of employer securities. For example, 25% of those over age 60 hold portfolios with 50% or more invested in company stock, compared to just 13% of those under age 30, and 15% of participants over age 60 hold 80% or more of their portfolios in company stock.

As Jeff Maggioncalda, president and CEO of Financial Engines, explained:

Unfortunately, the older employees holding the highest amounts of company stock have the least amount of time to recover if their company’s stock happens to take a hit. Many participants don’t realize that holding large amounts of company stock is actually a drag on the long-term growth of their portfolios.

Source: Financial Engines Press Release (May 12, 2008)

Japan: Government Falling Short in Ensuring that Employers Hire Older Workers

Kazuo Otsu, writing for the Daily Yomiyuri, examined whether the Japanese government is making good on its goal of a society in which people can continue to work regardless of their age. Japan's steps in this plan have included enforcing the revised Older Persons' Employment Stabilization Law in April 2006, under which companies are obliged to ensure there are job opportunities for workers up to the age of 65, effective April 2013, and implementing the revised Employment Measures Law to prohibit companies in principle from setting age limits for the recruiting of new employees.

According to Tomonari Higuchi, a business consultant in Yamagata Prefecture, "he often hears personnel managers referring to the difficulty of hiring aged workers."

"There's a remarkable number of people who feel they are treated like redundant baggage," said Higuchi, 51. "While there has been progress on a legislative level, in general the genuine intent of companies to hire elderly workers remains low."

Otsu notes, for example, that one job-seeker in his t0's was told "We only have young employees working here" when telephoning a company offering jobs stating no age limit.

Some employers openly admitted that not indicating an age limit was just a matter of expediency. Though the government can issue warnings to companies found to be flagrant transgressors of the law banning most age restrictions, the law itself has no penalty clauses.

Source: Daily Yomiyuri "Work for elderly remains elusive goal" (May 8, 2008)

Research: Employees without Other Health Insurance Less Likely To Retire

A Watson Wyatt analysis of retirement data finds that older workers without other health care insurance options are more likely to defer retirement to stay covered under their employer’s plan. While other factors, such as whether an employee has a pension, also contribute to decisions on when to retire, "employees who rely on their employers for health care coverage and do not expect to receive employer-provided health benefits in retirement are 16.5 percentage points less likely to retire in any given year than workers with access to health care coverage through another source."

The Watson Wyatt analysis--"Predictive Factors for Retirement Timing"--was made on data collected from 1992 to 2004 as part of the University of Michigan’s Health and Retirement Study. Factors other than health care which influence retirement decisions include:

• Retirement plan types. Having only a defined benefit increases the likelihood of retirement by 4.1 percentage points.
• Public policies. The gradual increase of the age at which workers can retire and receive full Social Security benefits from 65 to 67, workers born in the 1940s are less likely to retire early than those born in the 1930s.
• Household wealth. While workers’ household financial wealth obviously has an effect on their retirement decisions, the source of the wealth also makes a difference. For example, a $100,000 increase in expected income from a pension plan is more likely to prompt earlier retirement than an increase in housing equity.

Source: Watson Wyatt Worldwide Press Release (May 7, 2008)

United Kingdom: SME's Looking to Older Workers To Fill Skills Shortages

The Tenon Forum reports that entrepreneurs in the United Kingdom are increasingly relying on older workers to plug skills shortages in their businesses. Tenon regularly surveys small and medium enterprises (SMEs), and its latest research reveals that 30% of SMEs have a strong representation of employees aged over 50, with many businesses utilising the experience of older workers as coaches and mentors for younger employees (20%) or in the capacity of consultants following retirement (12%).

SMEs are looking to older workers to address concerns about skills shortages and that younger recruits are often just not up to the job: 34% report a lack of work readiness amongst graduates and 31% cite poor literacy and numeracy amongst school leavers as a key issue facing their business. Accordingly, 66% of SME leaders agree that the employment of workers aged 50 plus is a good solution to skills shortages, and 22% favor the hiring of older workers over college leavers as a solution to staffing problems.

According to Andy Raynor, CEO of Tenon:

Changes to pensions legislation, combined with the recent age discrimination legislation, are encouraging people to put their retirement on hold and continue working in some capacity, either as full-time or part-time employees, or as consultants. Older members of staff can bring huge benefits to an organisation and we expect to see more and more entrepreneurial businesses taking a flexible approach to recruitment and utilising this valuable skills base.

Source: Tenon Group Press Release (May 6, 2008)

Europe: Eurofound Report Examines Key Factors to Age and Working Conditions

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) has published a report highlighting four factors that are key to shaping the age structure of Europe’s workforce: ensuring career and employment security; maintaining and promoting the health and well-being of workers; developing skills and competencies; and reconciling working and non-working life. The report--"Working conditions of an ageing workforce" was authored by Claudia Villosio, with Dario Di Pierro, Alessandro Giordanengo, Paolo Pasqua and Matteo Richiardi, of theLABORatorio Riccardo Revelli, Centre for Employment Studies in Italy.

The reports findings show that improving working conditions leads to better job sustainability over the lifecycle, which in turn can prevent early exit from the labor market and encourage stronger participation rates among older workers. The analysis is based on findings from the fourth European Working Conditions Survey carried out in 31 countries, including the 27 EU Member States.

The report reveals how age is an important factor in describing working conditions and that significant differences emerge between younger and older workers. For instance, compared with younger workers, older workers are less exposed to physical risks in the working environment and enjoy a higher degree of autonomy in the workplace and a lower degree of work intensity. However, they have fewer opportunities with respect to involvement in new organisational forms, training and learning new things at work. Young and older workers both share a higher probability of being subjected to acts of discrimination at the workplace and, to a lesser extent, of experiencing difficulties in accessing IT. For their part, middle-aged workers carry a heavier burden in relation to caring activities outside of work, as well as reporting a lower level of satisfaction with work–life balance.

Source: Eurofound Publication Notice (May 6, 2008)

Survey: MetLife Employee Benefits Study Shows Increased Focus on Retirement and Aging Workforce

The workplace has become the dominant starting point for building a strong financial safety net, with more than half of working Americans (52%) obtaining the majority of their financial and retirement products through the workplace, according to MetLife. In addition to providing a picture of corporate employee benefits, its "6th Annual MetLife Study of Employee Benefits Trends" includes a look at a growing focus on retirement and the aging workforce.

Employers are implementing a range of programs and accommodations. Large companies outpace smaller employers when it comes to offering retirement guides/information and training. About one-third of companies with 500 or more employees offer resources and programs for an aging workforce. However, smaller employers provide greater flexibility for working part-time in retirement. Among companies that provide resources/programs for an aging workforce, 44% with 2 to 499 employees provide part-time employment to retirees, compared to 35% with 500 or more employees.

Smaller employers are less likely to anticipate being affected by the aging workforce. Only 35% of employers with 2 to 499 employees think they will be greatly impacted, compared to 50% with 500 or more employees. One reason could be that employees at smaller companies expect to work until an older age. While the average employee at companies with 500 or more employees is anticipating retiring from full-time work at age 63, the average employee at smaller employers is planning to retire at age 65.

Source: MetLife Press Release (April 7, 2008)

Legislation Introduced in U.S. Senate To Expand Opportunities for Older Workers

Senators Gordon H. Smith (R-OR), Herb Kohl (D-WI), and Kent Conrad (D-ND) have introduced the "Incentives for Older Workers Act," which is designed to provide incentives and eliminate barriers for older Americans wishing to stay in the workforce longer, and encourage employers to recruit and retain older workers.

"This legislation confronts the changing face of retirement. The divide between working and retirement is no longer the bright line it once was. Many workers stay on the job longer, not just because they have to but also because their employers want them to stay," Senator Conrad said. "“What we offer in the Incentives for Older Workers Act would make sure older employees who want to cut back their work schedules won't lose pension benefits as a result."

The proposed legislation (S. 2933, text not yet available) would, among other things:

• remove penalties in certain pension plans for workers who phase into retirement by receiving a lower salary while working reduced hours;
• allow seniors to earn delayed retirement credits for Social Security purposes for an additional two years until age 72, instead of age 70;
• reduce the amount of Social Security benefits lost to seniors who claim benefits before reaching normal retirement age and while they continue working;
• require states to include older worker representatives on the state and local workforce investment boards and set aside five percent of the Workforce Investment Act (WIA) funds to assist older individuals.

Source: U.S. Senate Select Commitee on Aging Press Release (April 29, 2008)