Minnesota: 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 Minnesota, the 21st state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Minnesota: 2004":

• 13.5% of workers were 55 and older, while 3.0% were 65 and older;
• statewide, the transportation and warehousing industry had the highest proportion of or workers 55 and older, but no individual sectors employed more than 20% 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 15.4% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (November 6, 2008)

United Kingdom: Survey Suggests Older Workers May Bear Brunt of Redundancies

According to the CIPD/KPMG Labour Market Outlook "Redundancy Special," a survey of 721 UK employers suggests that older workers are set to bear the brunt of redundancies in the year ahead. Specifically, 26% of employers have contingency plans to make new or further redundancies in the next twelve months in addition to those already planned, and almost one in five employers say that they are going to enforce the Government’s retirement age policy--which allows UK organizations to make workers over 65 redundant without having to provide a business reason for doing so--more vigorously.

Source: CIPD Press Release (October 31, 2008)

Pennsylvania: 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 Pennsylvania, the 20th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Pennsylvania: 2004":

• 16.0% of workers were 55 and older, while 3.6% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, with 21.9% of its workers in that age group; and
• the state's manufacturing industry employed the greatest number of older workers, with about 16.7% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (October 30, 2008)

Survey: Economic Environment Leading to Delayed Retirements in United States

A survey of retirement plan sponsors conducted by International Foundation of Employee Benefit Plans finds that plan participants appear to be responding to the current economic and financial crisis by delaying retirement, saving less, and re-aligning their retirement investments. Specifically, 46% of plan sponsors stated their employees and plan participants are considering delayed retirement, and 38% noted that their employees are concerned about not saving enough for retirement.

In addition to reporting a jump in the number of plan participants considering delaying retirement, the report "Plan Sponsors and Participants: Partners in Times of Crisis" finds that a quarter of plan sponsors citing an increase in the actual number of eligible workers postponing retirement. With respect to investments, nearly 30% of respondents report that defined contribution plan participants have decreased their overall retirement plan contributions and 34% believe plan participants have reduced their exposure to equities in favor of less risky investment alternatives.

Source: International Foundation of Employee Benefit Plans Press Release (October 29, 2008)

United Kingdom: Survey Shows Continued Age Discrimination Affecting Older Workers

According to a survey conducted by the Age and Employment Network (TAEN), only 10% of surveyed jobseekers in the United Kingdom aged 50 and over could say they had never experienced age discrimination when looking for work. In addition, just 13% thought the UK age discrimination legislation introduced in October 2006 had helped older people find work.

TAEN's "Survey of Jobseekers Aged 50+" also surveyed employer perceptions. While 67% of jobseekers felt they had the right skills for today’s labour market, 63% believed they were seen as too old by employers and 42% said they were seen as too experienced or over-qualified.

Chris Ball, Chief Executive of TAEN , commented:

We began gathering responses to our survey in January 2008, before the labour market slowdown and the crisis in financial markets started to bite. Our data represents responses from older jobseekers in a context when personal financial worries were probably less grave. We cannot but be concerned that the over-50s are going to face even greater barriers as the economy deteriorates.

Source: The Age and Employment Network Press Release (October 27, 2008)

AARP Study Reports Most Older Works Intend To Work into "Retirement" Years

An AARP survey has found that 70 percent of mature workers plan to work into what they view as their retirement years. Updating a 2002 survey, "Staying Ahead of the Curve 2007: The AARP Work and Career Study" reports that 27% of the 45-75 year olds questioned cited a need for money as the reason for continuing to work, while 21% attributed their decision to work in retirement to the fact that they enjoy working.

The study also reported that 51% of those interviewed said they plan to work part-time in retirement, while 29% do not plan to work. Another 11% plan to start their own business or work for themselves, while 6% plan to work full-time.

Included in the final report is a "Blueprint For Change" section that focuses on creative policies utilized by progressive employers. Among other things, these best practices include flexible schedules and work arrangements, cCompetitive health and other benefits, restructuring jobs or workplaces to accommodate employees’ unique needs later in life, recharging late-career workers with updated training, and utilizing knowledge retention strategies.

Source: AARP Press Release (October 20, 2008)

Canada: Conference Board Report Suggests Employers Not Making Efforts To Retain Mature Workers

The Conference Board of Canada has released a research report suggesting that while Canadian employers are worried about a rapidly aging workforce, they are not putting their money--or their human resources policies--into innovative ways to retain them. According to "Harnessing the Power: Recruiting, Engaging, and Retaining Mature Workers," authored by Karla Thorpe, most "organizations have not yet targeted specific human resources programs and policies to their mature workers. This is limiting their ability to attract, retain, and engage this increasingly important segment." Specifically, only 11% actively try to recruit mature workers with measures such as rehiring former employees and offering flexible hours or phased retirement.

On the hiring side, however, the Conference Board found employers to be a lot more active with regard to enticing mature workers back into the workforce. For organiazations that specifically recruit older workers, 73% report success in hiring them; for organizations taking a more general approach, only 23% report success attracting mature workers.

The report concludes that employers will need to invest in a better understanding of the motivations, needs, and preferences of this cohort in order to ensure organizational success as the post–war baby boom ages. It also singled out some employers that have responded to an aging workforce with innovative solutions.

Sources: Conference Board Executive Summary (October 2008); Canwest News Service "Mature workers need wooing: Conference Board" (October 17, 2008)

Survey: Older Workers Less Inclined To Impress Boss To Ensure Job Security

A recent Ranstad USA survey suggests that the turbulent economy may be forging stronger ties as employees look to shore up their job security, but that older employees are less inclined to flexibility. While 72% of employees would do something to impress their boss, this declines to 62% for workers 55 and older. Similar differences appear for each of the kind of thing than an employee might be willing to do to create more job security:

• take on additional work or responsibilities: 57% overall, 53% mature employees;
• work overtime to create more job security: 47% of all employees, 36% mature employees;
• stay late/come in early to show additional face time: 40% all employees, 22% mature employees;
• social with boss outside of office: 15% all employees, 4% mature employees;
• do personal favors, such as run errands: 11% all employees, 8% mature employees.

Overall, the survey finds that 77% of employees said they positively relate to their boss and 64% characterize their bosses in complimentary terms. Ranstad USA suggests that this "level of favorability may be a direct result of companies’ recent focus on creating better workplace environments and designing more employee-centric programs and tools."

"Employees’ professional development and morale should always be a priority for employers, and especially in an economic slowdown when employees may feel additional burdens," said Eric Buntin, managing director, marketing and operations for Randstad USA. "A healthy employee-employer relationship based on mutual respect greatly contributes to an overall positive workplace attitude. Employers who connect with their employees create an environment where workers are more engaged in their jobs and, thus, more productive. This can positively impact the bottom line."

Source: Ranstad USA Press Release (October 20, 2008)

Survey: Nonprofit Employers See Appeal in Hiring Encore Workers

According to a survey published by MetLife Foundation and Civic Ventures, 50% of nonprofit employers see encore workers--employees who have finished their midlife careers--as highly appealing, with an additional 39% finding them moderately appealing. In addition, the survey finds that nonprofits with experience hiring late-career or recently retired workers are the most positive (53% versus 40%) about hiring more.

Other findings reported in "Tapping Encore Talent: A MetLife Foundation/Civic Ventures Survey of Nonprofit Employers" include: (1) 69% of nonprofit employers rate the valuable experience encore workers bring to the job as a significant benefit, and 67% say the same about encore workers’ commitment and reliability; and (2) 25% of the employers expressed "serious concerns" that encore workers could demand higher salaries, 23% that workers would be reluctant to learn new technology, 20% that they would lack technical/professional skills, adn 19% that they could have higher insurance/benefit costs.

In addition to detailing the survey results, the report includes an essay and several commentaries on the use of boomers in second careers by nonprofit employers.

Source: Civic Ventures News Release (October 16, 2008)

Research Study Evaluates Government Programs in United States Helping Older Workers Obtain New Skills

A report by Heldrich Center researchers Carl Van Horn, Ph.D. and Maria Heidkamp reviews the federal government resources available to assist older unemployed job seekers and highlights examples of initiatives undertaken by states, community colleges, nonprofits and community-based organizations, and the private sector to help older workers find another job.

The study, also published as an issue brief by the Sloan Center on Aging & Work--"Older and Out of Work--Employer, Government and Nonprofit Assistance"--follows up on their earlier work. Among their conclusions is that only a small percentage of older unemployed workers will receive post-layoff assistance from their former employer and that finding that next job is likely to be difficult and time consuming--considerably more so than for younger job seekers—-and may require them to prepare for a new
career in a new industry.

While some primarily large employers do provide employees sufficient advance notice of a layoff and access to a range of outplacement and other services, small and mid-sized employers may not have the resources to offer post-layoff benefits. "They may need to seek opportunities to partner with government and nonprofit agencies in order to provide assistance to their older workers targeted for layoff. These opportunities may include participating in regional talent and skills alliances and sector strategies."

Source: John J. Heldrich Center for Workforce Development Home Page (October 16, 2008)

Washington: 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 Washington, the 19th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Washington: 2004":

• 13.2% of workers were 55 and older, while 2.6% were 65 and older;
• statewide, the utilities industry had the highest proportion of or workers 55 and older, with 23.3% 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 15.3% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (October 15, 2008)

Tennessee: 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 Tennessee, the 18th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Tennessee: 2004":

• 14.1% of workers were 55 and older, while 3.0% were 65 and older;
• statewide, the utilities industry and the mining industry had the highest proportion of or workers 55 and older, both having 20.4% of its workers in that age group; and
• the state's manufacturing industry employed the greatest number of older workers, with about 20.7% of the workers 55 and older being in that sector.

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

Cyprus: Government Launches Campaign To Encourage Retaining Older Workers

Cyprus Labour Minister Soteroulla Charalambous, in launching the ministry’s "Grey Hair, Experienced Hands" campaign argues that older workers do not only have the right to employment but are also a fountain of knowledge and experience that can and should be utilised by businesses and organizations. “We want to put out the message that employment is for all,” she said.

According to press reports, the campaign campaign is in line with the EU’s Lisbon Strategy and "seeks to encourage the employment of older workers and lifelong learning, to create more and better quality job positions that ensure workers’ health and safety, better remuneration, more flexibility at work to allow better work-life balance, and to promote measures that allow older workers access to an increasingly competitive and changing job market."

While Cyprus far, Cyprus compares favourably in the 55-64 age bracket with an unemployment rate of just 3.1% as opposed to the EU-27’s 5.6%, like the rest of Europe, Cyprus faces a different labor market with an increasing ageing population, new technology and increased competition. In order to keep older workers active for longer, the ministry will, among other things, look improving the quality of employment for older workers, target workers and employers to spread the message that the 55-64 age bracket was a social group that was older and experienced and could enrich the economy, their own lives and businesses, and tackle unfair dismissal, discrimination, and stereotypes about older workers.

Source: Cyprus Mail "Campaign aims to battle ageism at work " (October 12, 2008)

Sun Life Creates Unretirement Index: Measures Attitudes and Expectations towards Iissues Influencing Retirement

Sun Life Financial, Inc., had released its Unretirement Index to track the changing attitudes and expectations American workers have regarding retirement. It plans to release the Index multiple times each year and use it to gauge how economic, financial and societal forces are affecting working Americans, and forecast their future retirement decisions.

According to its initial release, 48% of the U.S. workforce believes it will still be working at the traditional retirement age of 67, and four of the five top reasons given were not financial in nature. Thus, for example, the most cited reason for continuing to work (83%) was "to stay mentally engaged."

"As our workforce evolves and attitudes are impacted by economic conditions and world events, the nature of retirement in America evolves as well," said Bob Salipante, President, Sun Life Financial U.S. "Traditional views on retirement are quickly evolving and more Americans are choosing to be unretired. This Index for the first time shows how changes in the economy, politics, healthcare and lifestyle are all critical factors in more and more Americans choosing to continue working during traditional retirement years."

Source: Sun Life Financial News Release (October 1, 2008)

Canada: Study Looks at Employer Readiness for Boomer Retirements

A survey conducted by the Human Resources Professionals Association (HRPA) in partnership with Life's Next Steps, reports that, while many Canadian employers face retirement levels of 20% or more over the next five years, most admit that they are not fully prepared to deal with this important issue. Specifically, HRPA's "Are Canadian Firms Prepared for the Boomer Exodus from the Workforce?" reports that only 14% of organizations feel fully prepared for "the coming talent shortage," while 23% admit to being "poorly prepared" and 60% say they are only "somewhat prepared".

"Many boomers obviously want to continue working in some way, to remain active and engaged or due to financial concerns," said [Suzanne Armstrong, president of Life's Next Steps.] "HR has an opportunity right now to take the lead in creating programs that help boomers plan for a different kind of retirement, and that encourage good employees to stay involved in the workforce in ways that are practical and flexible. It can be a win-win for employees and organizations. But employers need to act now to create initiatives and incentives aimed at keeping some of these excellent employees on the job in some way."

Source: Human Resources Professionals Association News Release (October 8, 2008)

Survey: Older Workers Concerned about Social Security and Medicare Promises

According to Watson Wyatt, many workers 50-64, particularly those without employer-sponsored retirement plans, retiree medical plans or other financial resources, do not expect to receive their full Social Security or Medicare payments after they retire. Specifically, 61% of older workers are not confident of receiving unreduced Medicare benefits, and 52% are not confident of receiving unreduced Social Security benefits.

Based on an analysis of a 2007 Watson Wyatt survey of 5,000 older employees, "Social Security, Medicare and Americans’ Confidence in Their Retirement Future" also suggests that confidence in these government programs is partly associated with how secure workers are in their own financial resources for retirement.

"Retirement income has traditionally been likened to a three-legged stool consisting of government plans, employer plans and personal savings," said Mark Warshawsky, director of retirement research at Watson Wyatt. "With the future of Medicare and Social Security uncertain, it is critical for employers and their employees to adequately prepare for future retirement needs."

Source: Watson Wyatt Press Release (October 2, 2008)

New Zealand: Extending Vocational Rehabilitation to Workers Over 65

New Zealand's Minister of Accident Compensation Corporation (ACC) announced that injured New Zealanders who are over 65 and want to return to the workforce will have better access to vocational rehabilitation under a law change that became effective October 1, 2008. According to Street, "People over 65 who are working are entitled to weekly compensation for up to two years if they are injured. Over 65s are eligible for both compensation and superannuation for the first year, but have to elect one or the other for the second year."

Before the change, only over 65's already receiving weekly compensation were entitled to vocational rehabilitation or return to work assistance, and only for up to two years. Under the new law, "they will also be entitled to vocational rehabilitation if they are on superannuation and that period of entitlement will extend to three years and beyond if ACC determines it will help them back into the workforce."

Source: Accident Compensation Corporation Press Release (October 1, 2008)

World Ecnomic Forum Develops Scenarios To Help Aging Societies Deal with Pensions and Healthcare

The World Economic Forum has issued a report arguing that the unprecedent rate of aging in the world is undermining the financial sustainability of traditional pension systems and healthcare and that urgent action is required in many countries. Through the use of scenario thinking, "The Future of Pensions and Healthcare in a Rapidly Ageing World-–Scenarios to 2030" aims to "bring the long-term consequences of ageing societies closer to the realities facing governments, businesses and NGOs today, and help everyone prepare for the challenges and opportunities that they imply."

In particular, the Forum argues that indicates that new forms of collaboration between key stakeholders--individuals, financial institutions, healthcare providers, employers and governments--will be critical to finance the ongoing well-being of current and future generations in a sustainable manner.

Source: World Economic Forum Press Release (September 23, 2008)

Commentary: Aging Workforce Presents Longterm Retirement Planning Opportunities for Employers and Employees

Ian Martin, UK Head of Retirement Businesses, HSBC Insurance, suggests that "Ageing populations are an opportunity for us all--be it increased longevity for individuals or access to mature, skilled workers for employers." However, this opportunity also comes with responsibilities: "for individuals to prepare and for employers to understand the value of older workers and ensure the working environment helps older workers to continue to flourish."

Martin's comments drew on an HSBC Insurance global report--"The Future of Retirement: Investing in Later Life"--which identified an ill-prepared generation with high expectations for their retirement but, perhaps unwittingly, unprepared for the cost implications for funding their increased longevity and desired retirement lifestyle.

Source: Director of Finance Online "Long term retirement planning " (September 26, 2008)

New Mexico: 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 Mexico, the 17th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in New Mexico: 2004":

• 14.1% of workers were 55 and older, while 3.2% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, with 22.0% 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 16.9% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (September 29, 2008)

AARP Announces 2008 Best Employers for Workers Over 50

Cornell University heads the list of AARP's 2008 best employers for workers over 50. According to AARP CEO Bill Novelli, a "diverse group of corporations and not-for-profits are increasingly recognizing the importance of innovative policies as employers seek to retain and recruit experienced workers." In particular, Novelli pointed out that, in the face of rising health care costs, many of the top 50 employers are adopting practices such as health screenings and other wellness programs that will pay off for both the employee and the employer.

With respect to Cornell, the University offers a variety of health-related programs through the year, including health screenings in office buildings on campus, and computerized and in-person health counseling for those enrolled in its Health Program for Healthy Living. Among other things, its wellness program provides access to five fitness centers on campus, an ice skating rink and several swimming pools, along with group fitness and nutrition classes. Other policies include flexible arrangements such as flextime, compressed work weeks and telecommuting; a formal phased retirement program for faculty; a robust retiree health and prescription drug plan heavily subsidized by the university; temporary work assignments for non-faculty retirees; paid time off for care giving, and access for retirees to continued university education at no charge.

In announcing the list of the top 50 employers, AARP also issued a compilation of employer strategies for addressing the issues of an aging workforce. AARP has grouped these best practices exhibited by one or more of its top 50 employers according to recruiting, training, phased retirement, retiree relations, and caregiving programs.

In addition, AARP has identified its top 10 international innovative employers.

Source: AARP Press Release (September 23, 2008)

Advocate General Opinion Supports U.K.'s Mandatory Retirement Law at European Court of Justice

Jan Marzak, the Advocate-General for the European Court of Justice, has issued an opinion recommending that the Court uphold the United Kingdom's law taht bans discrimination on the ground of age but excludes pensioners, who can be dismissed at 65 without redundancy payments, or at the employer's mandatory retirement age if it is above 65. According to Marzak:

A rule such as that at issue in the main proceedings, which permits employers to dismiss employees aged 65 or over if the reason for dismissal is retirement, can in principle be justified under Article 6(1) of Directive 2000/78 if that rule is objectively and reasonably justified in the context of national law by a legitimate aim relating to employment policy and the labour market and it is not apparent that the means put in place to achieve that aim of public interest are inappropriate and unnecessary for the purpose.

According to Gordon Lishman, director general of Age Concern, one of whose member organizations--Heyday--brought the case to set aside the law, "This is a set back, but it is not a disaster." While Age Concern would have preferred to have the Advocate General’s support, his "opinion confirms that the EU Directive requires age discrimination to be justified. It’s now up to the UK government to prove to the High Court that their social and employment policies are important enough to justify kicking people out of work at 65."

Sources: The Times "Setback in battle against compulsory retirement age" (September 24, 2008); Personnel Today "Heyday age discrimination ruling: what the employment lawyers and experts say" (September 23, 2008); Age Concern Press Release (September 23, 2008); Employers Forum on Age Press Release (September 23, 2008)

Oregon: 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 Oregon, the 16th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Oregon: 2004":

• 14.9% of workers were 55 and older, while 3.1% were 65 and older;
• statewide, the mining industry had the highest proportion of or workers 55 and older, with 23.2% of its workers in that age group, with the real estate and rental and leasing industry following with 21.1% and the utilities industry with 20.7%; and
• the state's health care and social assistance industry employed the greatest number of older workers, with about 14.9% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (September 23, 2008)

Research: Scope and Impact of Unemployment on Older Americans

A report by Heldrich Center researchers Carl Van Horn, Ph.D. and Maria Heidkamp looking at unemployed older workers finds that older unemployed workers face more significant challenges than their younger jobseeking counterparts. In particular, older unemployed workers take longer to find new jobs, and when they do, it is often in a different occupation, a different industry, and at much lower earnings than in their previous job.

Published as an issue brief by the Sloan Center on Aging & Work, "Older and Out of Work – Trends in Older Worker Displacement" reports that a growing proportion of older adults do not have the option of retiring from work, due in part to rising prices and lack of sufficient savings. Thus, Heidkamp says: "It is time to ask how employment and training programs can be more effective in bringing older unemployed workers back into workplaces where their talents are still needed and valued."

With talent shortages approaching as the Baby Boomer generation reaches retirement age, employers need to proactively ensure that they provide their older workers with a supportive work environment sensitive to their needs. For older workers, this often means providing greater workplace flexibility and benefits packages.

Source: Sloan Center on Aging & Work Issue Brief No. 16 (September 2008)

Research: Is Continued Work Linked to State Economics or Individual Characteristics?

The Center for Retirement Research at Boston College has released a research report investigating some stark differences in labor force participation rates of men aged 55-64 in different states--for example, West Virginia has a participation rate below 60%, while South Dakota has a participation rate of nearly 90%. The study ("Do State Economics or Individual Characteristics Determine Whether Older Men Work? "), authored by Alicia H. Munnell, Mauricio Soto, Robert K. Triest, and Natalia A. Zhivan, concludes that while differences in the nature of state economies, or the characteristics of their employers, affect the labor force participation rates of older workers, individuals characteristics are far more important in terms of extending working careers.

Factors that vary among states that affect participation rates include a pseudo replacement rate, the unemployment rate, the percent of men self-employed, percent of men in manufacturing, percent of men aged 55-64 with a college degree, and the ratio of men aged 55-64 to the total population. Individual factors that can affect participation were grouped into three categories: demographics (age, college, nonwhite, fair/poor health, and married), characteristics of the spouse (working, fair/poor health, and earnings), and respondent’s wealth (owns a home and financial assets).

As expected, older individuals and individuals in fair/poor health are less likely to be working than their counterparts. Having greater financial wealth is associated with a low probability of working. Having a college degree, having a working spouse or spouse in poor/fair health, and being a homeowner are associated with a higher probability of being employed. While having a high-earning spouse is associated with a lower probability of working relative to having a low-earning spouse, overall married men are more likely to be working than singles.

Accordingly, the authors conclude that the best way for policymakers to help struggling states is to develop policies that target individuals with particular characteristics rather than states themselves.

Source: Boston College Center on Aging & Work Issue Brief No. 8-13 (September 2008)

United States: Older Workers Labor Participation Rates Examined

The Congressional Research Service has updated its research report on "Older Workers: Employment and Retirement Trends" to reflect census data suggesting that a trend of reduced participation in the labor force by older workers could affect economic growth. However, the report also notes that benefit changes may encourage higher participation rates.

Specifically, the data shows that while the number of people between the ages of 55 and 64 will grow by about 11 million between 2005 and 2025, the number of people who are 25 to 54 years old will grow by only 5 million. With respect to labor force participation, in 2007, 91% of men and 75% of women aged 25 to 54 participated in the labor force, but just 70% of men and 58% of women aged 55 to 64 were either working or looking for work.

On the other hand, the report notes that the rate of employment among persons age 55 and older is influenced by general economic conditions, eligibility for Social Security benefits, the availability of health insurance, and the prevalence and design of employer-sponsored pensions. Thus, participation rates among these older workers may be affected by the trend away from defined-benefit pension plans that offer a monthly annuity for life to defined contribution plans that typically pay a lump-sum benefit. In additin, the declining percentage of employers that offer retiree health insurance may result in more people continuing to work until they are eligible for Medicare at 65.

Source: Congressional Research Service Summary (September 15, 2008)

Urban Institute Study Finds Delayed Retirement by Poorer Boomers May Improve Retirement Finances

The Urban Institute has released a paper projecting wealth and income at retirement for low-income boomers. The findings suggest that most with low lifetime earnings will also have low incomes at older ages unless they either continue working or move in with others who help support them financially. Among other things, the report suggests that delaying retirement will improve outcomes for low-earning boomers, but will not increase retirement living standards dramatically.

In "Boomers at the Bottom: How Will Low Income Boomers Cope with Retirement, the authors Barbara Butrica, Eric Toder, and Desmond Toohey looked at the possible effects of delayed retirement, along with saving more and working more consistently over their lifetime. With respect to working longer, they projected delaying retirement by five years (from 62 to 67) and found that this would have a modest 10% increase on average lifetime earnings for purposes of calculating Social Security (rising from $11,000 to $12,100), but it would raise household income by 13% (from $10,700 to $12,100), because of the additional earnings that working generates on top of the increased income from Social Security, defined benefit plans, and retirement accounts.

Among low-lifetime-earner boomers, those with low income at age 67 have strikingly different work patterns at older ages than those with higher income at age 67. Only 15 percent of low-lifetime-earners with low-income work at age 67, and 11 percent work during retirement. In contrast, 47 percent of low-lifetime-earners with higher-income work at age 67, and 35 percent continue working after retirement. Among low-lifetime-earner boomers, low-income retirees will receive only $600, or 6 percent of their household income, from earnings, compared with %9,000, or 37 percent, for higher-income retirees.

Source: Urban Institute Research Summary (September 16, 2008)

Ohio: Study Shows Older Workers To Remain in Workforce

According to research conducted by Miami University's Scripps Gerontology Center, more workers over the age of 55 are expected to stay in the workforce in Ohio, with the proportion of older workers in the state's workforce expected to rise from 16.7% percent to 22.4% from 2006 to 2016--an increase of 34% during that 10-year period. The study ("Ohio's Aging Workforce: Opportunities and Challenges for Ohio's Employers"), authored by Lydia K. Manning and Shahla A. Mehdizadeh, focused on anticipated age-related changes in Ohio’s workforce and the effect these changes might have on employers, employees and society.

Among other things, the authors note that two-thirds of Ohioans age 55 to 64 are expected to be in the state's workforce in 2016, roughly 20% of Ohioans age 65 and older are expected to be in the state's workforce in the year 2016, and, by 2016, two-thirds of all job openings in Ohio are expected to be for positions replacing retirees. Circumstances keeping people in the workforce include the elimination of traditional pension plans by many private employers, stock market losses eroding the value of 401(k) plans, and need for many people to retain access to employer-based health insurance.

Sources: Miami University's Scripps Gerontology Center "Ohio's Aging Workforce: Opportunities and Challenges for Ohio's Employers"; AHN "More Workers Over Age 55 Expected To Remain In Workforce" (September 12, 2008)

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)