France: Government Looks to Pension Reform

News reports state that French President Nicolas Sarkozy has said that a bill on reforming the costly pension system would be ready by September, with one option being raising the retirement age. This will be a challenge with much popular opposition being documented.

According to an Ifop poll for newspaper Dimanche Ouest-Francea, 59% of French oppose a rise in the retirement age. In addition, another poll from BVA for broadcaster Canal+ showed that French workers and students on average expect to retire at 62, higher than the current age but earlier than in comparable European economies such as Germany, where the retirement age is 67.

Sources: Reuters "France tackles explosive debate on pension reforms" (February 17, 2010); BBC "Nicolas Sarkozy to introduce French pension reforms" (Feburary 16, 2010)

EBRI Published Research Showing Older Workers Staying in the Workforce Longer

The Employee Benefit Research Institute (EBRI) has released the results of a research study finding that the labor-force participation rate is increasing for older Americans (those age 55 and older) as older workers are faced with higher health costs and economic losses. As published in the February 2010 issue of EBRI Notes, "Labor Force Participation Rates: The Population Age 55 and Older, 2008" used U.S. Census Bureau data to determine that while the percentage of civilian noninstitutionalized Americans aged 55 or older who were in the labor force declined from 34.6% in 1975 to 29.4% in 1993, the labor-force participation rate has steadily increased since then, reaching 39.4% in 2008—-the highest level over the 1975–2008 period.

In addition, according to a summary of the findings, for those aged 55–64, the increase in participation is is being driven almost exclusively by the increase of women in the work force; the male participation rate is flat to declining. For those aged 65 and older, however, labor-force participation is increasing for both men and women.

EBRI also reports that education is a strong factor in an individual’s participation in the labor force at older ages, with individuals with higher levels of education being significantly more likely to be in the labor force than those with lower levels of education. EBRI also suggests that the upward trend is likely to continue because of workers’ need for access to employment-based health insurance and for more earning years to accumulate assets in defined contribution (401(k)-type) plans. EBRI also noted that monetary needs are not the only driver, and that there is an increased desire among Americans to work longer, particularly among those with more education, for whom more meaningful jobs may be available that can be done well into older ages.

Source: Employee Benefit Research Institute Press Release (February 18, 2010)

Survey: More Older Workers Reporting to Younger Bosses

CareerBuilder has released the results of a survey showing that four out of ten workers over the age of 35 are working for a younger boss. Looking more closely at the numbers, 53% of workers ages 45 and up said they have a boss younger than them, followed by 69% of workers ages 55 and up.

Looking at the challenges posed by the mixing of the generations, CareerBuilder reports that 16% of workers ages 25-34 said they find it difficult to take direction from a boss younger than them, while 13% of workers ages 35-44 said the same. However, only 7% of workers ages 45-54 and 5 percent of workers ages 55 and up indicated they had difficulty taking direction from a younger boss. Among the reasons why working for someone younger than them can be a challenge, those surveyed indicated that, among other things, They act like they know more than me when they don’t, they act like they’re entitled and didn’t earn their position, and they play favorites with younger workers.

"As companies emerge from this recession, it is important for employees to work together and move the business forward, regardless of their age," said Rosemary Haefner, vice president of human resources at CareerBuilder. "With so many different age groups present, challenges can arise. Younger and older workers both need to recognize the value that each group brings to the table. By looking past their differences and focusing on their strengths, workers of any age can mutually benefit from those around them, creating a more cohesive workplace."

Source: CareerBuilder Press Release (February 17, 2010)

Research: Productivity of Older Workers Decreases with Age, but Decline is Limited

A Dutch labor economist looking at age effects at the individual level by analyzing data on running and publishing in economic journals has concluded that the productivity of older workers indeed decreases with their age, but that the decline is limited, and found no evidence of a pay-productivity gap at higher ages. In "Will You Still Need Me: When I’m 64?" (De Economist), Jan C. Van Ours, of Triburg University, undertook the study to test the perception whether older workers without jobs have a harder time finding one because of A gap between wage and productivity--that is, older workers having a wage that is higher than their productivity.

To shed some light on the relationship between age and productivity I analyzed panel data on individuals and firms. To the extent that running performance represents physical productivity I find evidence of a productivity decline after age 40. To the extent that publishing in economics journals represents mental productivity I do not find evidence of a productivity decline, even after age 50. When measured at the firm level I find little evidence of an increasing pay-productivity gap at higher ages of the workforce.

Van Ours acknowledges that there are limitations of the empirical analysis, but nevertheless believes that while "the potential negative effects of aging on productivity should not be underestimated; they should not be exaggerated either." In particular, there "is no need to worry too much about age-related productivity declines or an age related pay-productivity gap." However, since older workers are not very likely to return to a job after becoming unemployed, he suggests that the labor market position of older workers will remain an area of policy concern.

Sources: SpringerLink Summary (January 9, 2010); PhysOrg.com "Older workers do not necessarily perform worse" (February 12, 2010)

Opinion: Call for More Research on How Older Workers Respond in Actual Working Conditions

Stating that too little is known about how workers manage job demands as they age and begin to lose physical and cognitive abilities., Business Insurance is calling for adequate research into older worker performance conducted in real workplaces, where all the workaday pressures are present. While there is widespread agreement that knowing more about older workers is important for employers, most studies on aging-worker performance have been completed in quiet lab environments where people are asked to complete specific tasks.

That means employers don't know enough about how aging employees are accommodating for declining capabilities. Are they jerry-rigging devices to help them lift loads or creating platforms that help them step over obstacles?

If employers are not directing such accommodations, it is possible individual worker efforts could actually be creating safety hazards for themselves and other employees.

Perhaps there are better ways to accommodate that could increase productivity. Research could help answer such questions.

Source: Business Insurance "Older workers warrant researchers' attention" (February 8, 2010)

United Kingdom: Government Seminar Stresses How Older Workers Can Advise Businesses

At a seminar on “Is business ready for an ageing nation – economic opportunities for an ageing population” led by Department for Business, Innovation & Skills (BIS), Business Minister Pat McFadden said that older people bring skills and experience to the workplace that can be an asset to business and their spending power can boost the wider economy. "We should be recognising this and looking for ways to meet their needs, and to make the most of what older workers can offer."

The overall objective of the seminar was for attendees to come up with recommendations for future action by government and business in this area and to start developing a coherent agenda for future work. George Magnus, Senior Economic Adviser at UBS, commented; “The UK needs to re-boot its ideas about how it adapts to ageing. No one is suggesting people should be compelled to work in their 70s but many do want to do just that and this could have many advantages, not least in their own financial and psychological well-being."

Sources: The Age and Employment Network News Archive (February 4, 2010); Department for Business Innovation & Skills News Release (February 3, 2010)

Australia: Boosting Older Workers Important Feature of Third Intergenerational Report

The Australian Government had issued the Third InterGenerational Report addressing many issues as it looks towards 2050, by which time the number of people aged 65 to 84 years will have more than doubled and the number of people aged 85 and over will have more than quadrupled.

In his speech introducing the report, Wayne Swan, the Treasurer of the Commonwealth, focused on areas with respect to the aging workforce: increasing productivity and increasing participation. Responding to declining productivity, Swan said "And the best way to grow the economy is to maintain our focus on productivity, on investing in skills and infrastructure--nation building, the Education Revolution and regulatory and tax reform to underpin productivity growth in the decades to come." However, acknowledging that this is not enough, Swan said that "we need to keep encouraging workforce participation."

There has been a tendency in previous reports to present the ageing of the population only as a problem to be solved.

I prefer to focus on how we can best harness the life experiences and intellectual capital of older Australians. These are Australians who have already made a massive contribution to our nation. Their experience is invaluable.

Many will choose to leave the workforce, and enjoy a well-earned retirement, for a variety of reasons. But if they want to work they should be welcomed into the workforce.

Australia has a lower rate of mature age participation than other comparable countries – like the US, UK, Canada and New Zealand. There is considerable room for improvement in this area.

Groups like National Seniors Australia – and it's good to see Everald Compton here today – have identified a range of issues that we need to consider – including raising community awareness, encouraging skills development and promoting healthy workplaces.

If we can remove the obstacles for older Australians who want to work, we not only improve the quality of their life but we also strengthen the economy. That's what our Budget changes to the work bonus were all about.

The choice for older Australians to stay in or leave the workforce should be just that – a choice, not something forced on them by prejudice or bad policy.

Sources: Treasurer of the Commonwealth of Australia Speech (February 1, 2010); The Australian "Inconvenient truth on ageing" (February 4, 2010)

United Kingdom: Report Released on Evaluating Return to Work Efforts on Behalf of 50 Plus

The UK's Department for Work and Pensions has released a report reviewing the literature to provide greater insight into how the Department's back to work provision supports the over-50s return to work has been published. The main findings of “50+ Back to work evidence review and indicative guide for secondary data analysis” prepared by Sandra Vegeris, Deborah Smeaton and Melahat Sahin-Dikmen, Policy Studies Institute, are:

• Advisory support: Older customers valued regular meetings and support with job searches, IT skills and preparing CVs. Older people with professional or managerial backgrounds were less likely to find adviser services helpful. In programmes that involved a mandatory interview with an adviser, 50+ customers were more likely to have a health condition or disability which may have restricted engagement with advisory services.
• Training: Studies reported lower than expected rates of training among 50+ customers. Few studies provided reasons for non-take up: these included perceptions of being ‘too old’ for training or disappointment with training options. Positive work outcomes attributed to participation in Work Based Learning for Adults (WBLA) (a voluntary programme) did not identify possible reasons for this favourable outcome among older participants.

Source: Department for Work and Pensions News Release (January 26, 2010)

United Kingdom: Survey Shows More Older Workers Planning To Opt Out of Automatic Pension Enrollments

A survey conducted by B&CE with respect to its United Kingdom customer views and intentions around the introduction of the National Employment Savings Trust (NEST) in 2012 show that older workers are much more likely to opt out as automatic enrollment is phased in until 2017. While only 10% within the 18-34 age group indicated that they would opt out, as did 17% of those in the 35-54 range, 42% of those 55 and older said they would opt out.

John Jory, Director of B&CE Insurance Ltd, commented: "The survey results for the higher age bands are disappointing but perhaps not surprising." B&CE suggested that for older workers might feel that it’s too late to start saving, especially with the potential negative impact of means testing.

Source: B&CE Benefit Schemes News Release (January 26, 2010)

United Kingdom: Equality and Human Rights Commission Launches New Program for Older Workers

Accompanied by research report and policy brief, the United Kingdom's Equality and Human Rights Commission (EHRC) has released its "Working Better - The over 50s, the new work generation " to open up more work opportunities for older Britons and address the challenges of an aging workforce. In so doing, EHRC has made a series proposals for fundamental changes to employment policies, including "abolishing the default retirement age, the extension of the right to request flexible working to all, overhauling employer recruitment practices to prevent discrimination and improved training and development."

EHRC's research report--"Older workers: employment preferences, barriers and solutions"--was authored by Deborah Smeaton, Sandra Vegeris and Melahat Sahin-Dikmen and finds, among other things, that of workers aged 50-75:

• 24% of men and 64% per cent of women say they plan to keep working beyond the state pension age;
• 55% cent say they are unhappy with some aspect of their working lives;
• half say the availability of part-time or flexible work would help them;
• 38% of men and 46% of women are not aware of the right to request flexible working available to adult carers; and
• 60% say they are as physically capable now to perform their jobs as when younger.

EHRC's policy briefing--"Working Better: The over 50s, the new work generation." draws on the new research and contains findings, recommendations and practical solutions for government and employers, and also features case studies from both employees and employers. In presenting its recommended solutions, EHRC states:

Tackling barriers to the employment of older people requires taking action on a number of fronts: the quality and flexibility of jobs; occupational health; retirement and pension policies; and attitudes and assumptions about the older generation. This will mean collaboration between government, employers, trade unions, occupational health experts and others.

Source: Equality and Human Rights Commission Media Release (January 25, 2010)

Canada: Economic Report on Ontario Points to Aging Workforce

The "Ontario's Long-Term Report on the Economy," issued by the Ministry of Finance, states that, among other things, Ontario's working-age population share (ages 15-64) will decrease from 69.4% of the population in 2009 to 61.5% by 2030. In absolute numbers, the working-age population is expected to increase by 13.5%, but that is about half the growth seen over the previous two decades.

Population aging and the slowing pace of growth in the working-age group could contribute to a slower rate of future real gross domestic product (GDP) growth.

Since participation in the job market is significantly lower for older age groups, population aging will be a factor in slower labour-force growth to 2030. As the large cohorts of baby boomers reach retirement age, the number of people turning 65 is projected to surpass the number entering the working-age group (at age 15) from 2017 until the early 2030s. As a result, the working-age group will grow solely because of net migration during this period.

While looking to immigration, the report also encourage policies and workplace initiatives that promote more flexible work arrangements in all segments of the working-age population and specifically put forward facilitating phased retirements as a way to encourage skilled workers to remain in the workforce longer, either full time or part time.

Source: Ontario Ministry of Finance News Release (January 22, 2010)

Australia: Government Contemplating Tax Changes to Encourage Older Workers To Remain Employed

According to The Australian, one result of a government review of taxes could be a lower marginal rate for older workers as an incentive to stay in their jobs. Speaking at a tax conference in Sydney, Ken Henry, chairman of the tax review, told attendees that "[o]lder people are less likely to be in the workforce, due to retirement or working less hours. . . . Marginal tax rates might need to be adjusted over time to ensure they reflect the changing abilities and propensities to work of different cohorts at different times in their lives."

The government's thinking is that taxes would make a bigger difference to the number of older workers deciding to remain in the workforce than it would for people of prime working age, who were likely to stay employed in any case.

Source: The Australian "Tax breaks for older workers" (January 22, 2010)

NCCI Issues Report on Workplace Injuries of Workers 65 and Older

The National Council on Compensation Insurance (NCCI) has released a new report examining how workers aged 65 and older differ from all workers in terms of their share of claims, indemnity and medical payments, frequency, and indemnity and medical severity (i.e., cost per claim). Among other things, the report--"Claims Characteristics of Workers Aged 65 and Older"--finds that:

• falls/slips/trips are by far the greatest cause of injury among older workers;
• indemnity severity is less for older workers, largely because of the lower average weekly wage of such workers; and
• medical severity is higher for older workers, although the differential between workers aged 65 and older and nearby age cohorts is small.

NCCI decided to follow up on an earlier study on workers aged 20-64, since labor participation rates of workers aged 65 and older have increased by nearly 50% since the late 1980s, and the rate for workers aged 55 to 64 has also increased (from 55% to 65%).

For safety and loss prevention managers, the increase in the number of older persons in the workforce presents both challenges and opportunities. The challenges reflect the fact that as people age there appears to be a deterioration in factors such as eyesight (in terms of acuity, peripheral vision, and depth/ color perception), hearing, muscle tone (strength, flexibility), reaction time, and mental processes (slower recall rates and less effective short-term memory).

The opportunities involve steps that can be taken to reduce the risks in the workplace for older workers that take into account these changing circumstances. For example, to reduce the risks of falls, employers can enhance lighting where necessary, install slip-resistant flooring, and provide handrails (steps that would likely benefit the safety for all workers as well). The installation of noise dampening materials may also help where hearing may be an issue (e.g., on the factory floor). Employers can also provide wellness and exercise programs and provide information and support for common health problems that may affect older workers (such as arthritis and adult-onset diabetes).

Source: National Council on Compensation Insurance, Inc. News Release (January 15, 2010)

Urban Institute Issues Series of Reports on Trends and Challenges Facing Older Workers in Recession

The Urban Institute's Retirement Policy Program recently released a number of analyses detailing new trends and challenges facing older Americans during the recession. Included in this series are:

• "Unemployment Statistics on Older Americans" As the recession has increased joblessness among older Americans, this report provides graphs and tables that report unemployment rates and how they have varied by age, sex, race, and education since 2007.
• "Work Ability and the Social Insurance Safety Net in the Years Prior to Retirement" This study examines disability benefit receipt, income, and poverty status for a sample of Americans as they age. The results underscore the precarious financial state of most people approaching traditional retirement age with disabilities.
• "Older Adults' Labor Force Participation since 1993: A Decade and a Half of Growth" Charts showing that labor force participation rates—-the percentage of adults working or looking for work—-increased sharply for older men and women between 1993 and 2009.

Source: Urban Institute Retirement Policy Program " New Employment, Social Security Take Up Rate and Disability Benefits Data" (January 15, 2009)

AARP Reports that Unemployment for Older Workers Not Improving as Recession Peaks

AARP has been tracking how older workers fare as the United States comes out of the recession. Looking at the November 2009 numbers, it found that while unemployment make have peaked, older job seekers saw their unemployment rate, duration of unemployment, involuntary part-time employment rate, and job-seeking discouragement rise. Further, looking at the December 2009 numbers, AARP reported that overall unemployment did not increase, 29,000 more persons aged 55 and over were unemployed in December than in November, bringing the total unemployment rate for this group up to 7.2% from 7.1%.

Sources: AARP Public Policy Institute Fact Sheet (December 2009), Fact Sheet (January 2010)

United Kingdom: Survey Finds Over-50s Looking to Keep Working in Flexible Retirement

According to a survey conducted by Saga, around 24% of people in the United Kingdom over 50 have rejected full retirement in favor of continuing with some paid work, as well as carrying out voluntary work and having more leisure time. In addition, according to the Saga Manifesto, which advocates the abolition of the default retirement age, almost 97% of over-50s reject the idea of working doggedly until state retirement age and greatly prefer to scale back working hours before this time.

Saga predicts that there will be a 50% increase in the number of people who take this approach to retirement during the next 10 years, with around three million over-50s combining work and volunteering by 2019. People will typically start scaling back their working hours when they are 57, with the average person carrying out 27 hours a week of paid work and eight hours of voluntary work.

Sources: Saga Media Release (January 11, 2010); UK Press Association "Over 50s taking gradual retirement" (January 7, 2010)

EBRI Research Shows Decline in Tenure of Older Workers Other than the Oldest

According to research published in EBRI Notes in January issue, while the median tenure of workers--the midpoint of wage and salary workers’ length of employment in their current job--was virtually unchanged over the past 25 years, there were significant changes among older workers.

Thus, while the median tenure for all workers was 5.1 years at the same job in 2008, compared with 5.0 years in 1983, among those ages 60–64, the percentage with 25 or more years of tenure increased by more than 3 percentage points from 2006–2008, after a fairly steep decline from 1983–2006. In 1983, 23.3% of wage and salary workers ages 60–64 had tenure of 25 or more years, compared with 16.6% in 2006. For those ages 55–59, a persistent decline occurred: from 22.7% in 1983 to 17.6% in 2008.

Source: EBRI Press Release (January 7, 2010)

Conference Board Job Satisfaction Survey Finds Older Workers as Dissatisfied as Others

The Conference Board's report on job satisfaction suggests that Americans of all ages and income brackets continue to grow increasingly unhappy at work. However, the Board noted that the extreme dissatisfaction of younger workers could bode ill for multi-generational workforces:

"These numbers do not bode well given the multi-generational dynamics of the labor force," says Linda Barrington, managing director, Human Capital, The Conference Board. "The newest federal statistics show that baby boomers will compose a quarter of the U.S. workforce in eight years, and since 1987 we’ve watched them increasingly losing faith in the workplace." Twenty years ago, some 60 percent of that generation was satisfied with their jobs. Today, that figure is roughly 46 percent. Barrington adds: "The growing dissatisfaction across and between generations is important to address because it can directly impact the quality of multi-generational knowledge transfer-which is increasingly critical to effective workplace functioning."

Interestingly, even if older workers might seem more satisfied, that may be masking some other issues. As one response wrote:

Older workers who are in the age group typically most satisfied with their jobs, aren’t. They stay because the value of their investments and 401(k)s have fallen so far they can’t afford to retire; they have fewer options due to age, and are less likely to relocate for work.

Source: Conference Board News Release (January 5, 2010)

Other Reactions: John Zappe ere.net Blog Poat (January 19, 2010)

Netherlands: Proposal to Cut Duration of Unemployment Benefits to Encourage Older Workers To Seek Work

According to published reports, Chris Buijink, Secretary-General of the Ministry of Economic Affairs of the Netherlands, has called for reducing the length of time people can claim unemployment benefit to encourage them to find work as quickly as possible. Writing in the economics journal "Economic Statistische Berichten" (ESB), Buijink suggested that a reduction in the length of time income-related jobless benefit is paid would be an important stimulus to find new work, particularly among older workers.

The long slide towards a pension must be made less attractive. Unemployment is still an attractive way out for many older workers,' he said. While there have been improvements in the job take-up rate among older workers, just 26% of people aged 60 to 64 still have a job, he pointed out.

However, "Christian Democrat spokesman Eddy van Hijum and Labour's Roos Vermeij told Trouw it was too simplistic to say older workers would be encouraged to stay in work if their benefit rights were cut." Instead, they argued, "efforts need to be made to change the working culture and employers must be encouraged to invest in their older staff. Only some 26% of the over 60s are still in work."

Sources: Dutch News "Top civil servant calls for jobless benefit cuts" (January 7, 2010); NRC Handelsblad "Topman EZ wil dat WW wordt beperkt" (January 7, 2010); Dutch News "Jobless benefit cut no solution for older staff" (January 8, 2010)

Montana: State Economist on Challenge of Aging Workforce

Barbara Wagner, an economist with the Montana Department of Labor and Industry, predicts that the the aging workforce is going to be affecting Montana’s labor markets in the next few years--much sooner than other places in the country. Writing in the Big Sky Business Journal, she suggests that now is the time to plan for changes an aging workforce will bring by developing flexible worker training and adopting new workplace practices.

Montana has a median age of 39.3 compared to the national average of 36.8--the 8th oldest population in the country. In addition, the traditional working age population aged 16 to 65 is expected to start declining in Montana starting in 2012, while the U.S. population aged 16 to 65 is not expected to decline before 2030. In fact, already over 19.3% of Montana’s workers are over the age of 55 and approaching retirement.

According to Wagner, overall demographics are also going to affect job demands. Thus, an aging population will put stress on the health care sector, dramatically increasing employment needs, while a decreasing youth population could lead to a decline in educational employment. However, she notes that increased training needs could be a counter-vailing influence.

Among other things, she offers two solutions: (1) reduce the need for more workers while still growing our economy by increasing worker productivity, and (2) increase the number of workers either from in-migration of workers from other states, or by increasing labor force participation from its current level. While some of these changes will occur naturally, more will be needed in increased training programs and economic infrastructure to meet employment needs.

Source: Big Sky Business Journal "Montanans Getting Older" (January 6, 2010)

Opinion: Utilizing Physical Examinations to Help Avoid Worker's Comp Claims when Hiring Older Workers

As older workers become more important to employers, concerns also rise as to the worker's compensation costs associated with older workers. According to Julie Croushore, a claims supervisor with National Interstate Insurance Company, older employees "present an added risk of injury and workers’ compensation claims as many suffer from arthritis and other chronic pre-existing medical conditions."

Statistics suggesting that older workers suffer higher fatalities from workplace injuries and lose more more days than younger workers can mean increased workers' compensation claims and higher insurance premiums. Croushore suggests that the nation’s aging workforce demands a proactive approach to risk managemen: "most workers’ compensation claims are preventable. The trick is to determine ahead of time if an individual is capable of performing a job safely, particularly in the case of older workers with pre-existing and chronic conditions."

Describing a scenario in which a longhaul truckdriver retires to be closer to his family and is hired by a local delivery company, only to have him get injured and go out on workers' comp at his new employer's expense, Croushore recommends that an employer should use a a pre-employment physical examination or abilities test to determine whether a candidate can safely deal with the physical demands of a new job.

Through the exam, the employer would have learned the extent of [the employee]’s arthritis and realized he couldn’t handle those truck steps many times a day. Knowing that would have enabled the delivery company to make a more informed employment decision — including a decision not to hire [employee] because he was medically unable to perform the essential job function of a delivery driver safely. Or, the employer could have decided to offer him a driving position that didn’t involve many stops.

Source: Transport Topics "Opinion: Workers’ Comp and Our Aging Workforce" (January 4, 2010)

Slovenia: Pension Reforms Include Raising Retirement Age

Slovenia faces a new reform of its pension system in 2010. The blueprint presented in September 2009 envisages among other things the raising of the full retirement age to 65 for both men and women, a measure unacceptable for trade unions. In line with the plans unveiled by the government, changes would be introduced gradually between 2011 and 2020, with the turning point coming in 2015, which would count as the formal starting year for the new pension system.

The new system would include everyone under 55 at that point. All other citizens would fall under an updated version of the existing system. The changes envisage the raising of the minimum retirement age from 58 to 60 years, while full retirement would come at 65. In line with the existing reform from 2000, the full retirement age will stand at 63 for men and 56 years and eight months for women in 2010. It was planned to eventually rise to 61 for women.

Source: Government Communication Office "2010 Brings Pension Reform" (January 2, 2010)

Survey: Employers Looking to Retain and Hire Older Workers

Careerbuilder.com's 2010 Job Forecast indicates that there will an uptick in employer hiring in 2010. Among other things, it reports that companies understand the intellectual capital mature workers bring to their organization and 27% say they are open to retaining their workers who are approaching retirement. In addition, 16% say they are likely to rehire retirees from other companies in 2010, and 10% are likely to provide incentives for workers at or approaching retirement age to stay on with the company longer.

Source: Careerbuilder.com Press Release (December 29, 2009)

Civic Ventures Publishes Guide to Encore Careers

Civic Ventures has published a guide for baby boomers starting to search for encore careers that combine greater meaning, continued income, and social impact. "Looking for an Encore Career? The Guide to Finding Work That Matters" provides practical tips, case studies, and recommended resources.

Among other things, it addresses what a person should expect looking for a job, how to update job skills, how to finance the transition to an encore career, how to turn volunteering into a job, among other topics.

Source: Civic Ventures News Release (November 30, 2009)

Study: Generational Differences at Work More Matter of Perception than Reality

Differences among the generations in the workplace--Baby Boomers, Generation X and Generation Y--are more about perception than reality, with each viewing other generations more harshly than they view their own. However, according to a Conference Board of Canada study, the generations are more alike than they realize.

The report--Winning the Generation Wars: Making the Most of Generational Differences and Similarities in the Workplace--is based on a literature review as well as a survey of over 900 workers. According to the report, negative stereotypes of the three generations include:

• Boomers are seen as less comfortable with technology, less open to change, and less accepting of diversity than other generations;
• Generation X workers are seen as cynical, independent, and easily annoyed by any hint of being micro-managed; and
• Generation Y workers are seen by older colleagues as lazy, difficult to manage, and perpetually prepared to bolt from the organization as soon as another opportunity arises.

Tim Krywulak, Senior Research Associate, said that “This research shows each generation includes workers with similar personality types, workplace motivations, and social behaviours. Workers from all three generations want respect, flexibility, fairness, and the opportunity to do interesting and rewarding work.” Employers should manage the differences in perceptions among the generations while recognizing the cross-generational similarities in workplace preferences, by, among other things:

• implementing programs, policies and practices that respond to the cross-generational desires for respect, flexibility and fairness in the workplace;
• building a culture of inclusion to address the negative stereotypes about the generations in the workplace; and
• learning from effective practices used by other organizations.

Source: Conference Board of Canada News Release (November 16, 2009)

Research Suggests Employers Need to Shape Workplace to Fit Health Needs of Older Workers

Published results of an investigation of 14,714 employees from the French national gas and electricity company, the GAZEL cohort, for up to 7 years before and 7 years after retirement, has found that suboptimum health increased with age, but that between the year before retirement and the year after, the estimated prevalence of suboptimum health fell from 19·2% to 14·3%, corresponding to a gain in health of 8—10 years. However, people with a combination of high occupational grade, low demands, and high satisfaction at work showed no such retirement-related improvement.

The researchers note in their article "Self-rated health before and after retirement in France (GAZEL): a cohort study" published in The Lancet that they conducted the investigation since governments need to increase the proportion of the population in work in most developed countries because of ageing populations. The results led them to conclude that the burden of ill-health, in terms of perceived health problems, is substantially relieved by retirement for all groups of workers apart from those with ideal working conditions, and that working life for older workers needs to be redesigned to achieve higher labour-market participation.

According the report, a poor work environment and health complaints before retirement were associated with a steeper yearly increase in the prevalence of suboptimum health while still in work, and a greater retirement-related improvement. However, only about 2% of workers were in the "ideal" circumstances of having a combination of high occupational grade, low demands, and high satisfaction at work.

Sources: Medical News Today "Better Working Conditions And Job Satisfaction In Order To Keep Older Workers In The Workforce (GAZEL Study)" (November 9, 2009); eZonomics "Late is the new early for retirement" (November 18, 2009); Reuters Blog "Health and the older worker" (November 19, 2009)

A parallel report on the sleep habits of these workers was published in the journal Sleep. According to that article, retirement is followed by a sharp decrease in the prevalence of sleep disturbances, likely resulting from the removal of work-related demands and stress rather than from actual health benefits of retirement. The postretirement improvement in sleep was more pronounced in men, management-level workers, employees who reported high psychological job demands, and people who occasionally or consistently worked night shifts.

Source: ScienceDaily "Sleep Disturbances Improve After Retirement" (November 2, 2009)

Business Week Publishes Special Report on the "Unretired"

Business Week has published a special report exploring how--with the financial crisis having forced people to postpone, rethink, or come out of retirement--retaining this talent pool brings both opportunity and challenges for companies. The report includes:

• "How Older Workers Can Lighten the Load", a case study of how a program at Abbott Labs gives those 55+ but not yet able to retire a chance to extend their working years at peak pay;
• "How to Reinvent Yourself Post-Recession", advice to older workers on how to pause, take stock, and chart a new course for the second half of life;
• "How Companies are Managing 'Unretirement'", a perspective from Towers Perrin about how leading companies are preparing for the demographic fallout of the current recession;
• "How to Manage Gen U: Generation Unretired", advice for managers to recognize the unique set of opportunities that "Gen U" presents and how to navigate any concerns; and
• "How Companies Manage the Unretired", a video presentation on how, as employees delay retirement, companies must cope with higher costs for benefits and the need to create opportunity.

Source: Business Week Special Report: How to Manage "Generation Unretired" (November 17, 2009)

Eight Organizations Honored for Helping Older Workers into Encore Careers

Civic Ventures and MetLife Foundation have named eight organizations as winners of the 2009 Encore Opportunity Awards awarded to organizations that are making it easier for experienced workers to transition into encore careers--paid jobs that offer meaning and the chance to make a social impact. Among other things, the winners are engaging people over 50 in creative ways to protect public safety, build low-income housing, teach job skills, preserve the environment, and even save dying Native American languages.

"This year's Encore Opportunity Award winners are innovative, adaptable and smart – and clearly recognize the need to take advantage of the windfall of talented older Americans," said Dennis White, CEO and president of MetLife Foundation. "These trailblazing employers can serve as a model for others to follow."

On the employment front, the Gwinnett County Sheriff's Department (Lawrenceville, Ga.) was cited for its recruitment and employment of encore workers to fill jobs at all levels; one-fourth of the it's civilian and sworn work force is over 50, coming from previous careers in government, retail and business. In addition, the Orleans Technical Institute (a division of JEVS Human Services (Philadelphia)) was cited for hiring retirees from the building trades as instructors to provide training and individualized support to an "at-risk" student population; more than half of the school's employees are 50-plus, including full- and part-time instructors, support staff, recruiters and counselors.

Source: Civic Ventures Press Release (November 17, 2009)

Survey: Employers Still Not Prepared for Boomers Leaving Workforce

Even though millions of Baby Boomers are poised to age out of the workforce, companies in the United States remain unprepared for their departure and the "imminent talent desert that promises to alter the productive capacity of business and disrupt the national economic landscape," according to a report issued by Sloan Center on Aging & Work at Boston College. In particular, 68% of the 696 organizations surveyed do not yet know how old their workers are or what proportion is likely to retire, while 40% stated that the aging of the workforce will have a detrimental impact on their organization in the next three years.

The 2009 Talent Management Study: The Pressures of Talent Management also reports that:

• 77% of employers surveyed had not analyzed projected employee retirement rates or assessed employee career plans;
• 56% had not assessed the skills their organizations need today and into the future; and
• 30% reported not having enough programs for recruitment, and 35% not enough for training of older workers.

The study's authors note that while the aging population will affect companies differently, the long-predicted workforce desolation has generated surprisingly limited responses. Baby Boomers represented the largest portion (48%) of the U.S. labor force in 2000, but this is estimated to decline to 37% by 2010, leading some economists predict labor shortages of 10-15 million in the coming decade.

“The out-migration of an entire generation of workers will upset the entire balance of the workplace,” said Marcie Pitt-Catsouphes, Director of the Sloan Center on Aging & Work and report co-author. “Knee-jerk reactions to today’s challenging economic reality aside, US companies need to start planning strategically for workforce sustainability. The current abundance of older worker talent and experience is going to dry up, and businesses will very soon need to fill hundreds, if not thousands, of jobs.”

Source: Sloan Center on Aging & Work at Boston College News Release (November 17, 2009)

Singapore: Tripartite Guidelines on Re-Employment of Older Employees Released For Public Consultation

Singapore's Minister for Manpower and Chairman of the Tripartite Committee on Employability of Older Workers are inviting public consultation on a new draft Tripartite Guidelines for Re-employment of Older Employees that is aimed at preparing businesses and employees for re-employment legislation come 2012. This is an updated expansion of the advisory issued in April 2008, incorporating feedback from both employers and unions.

Among other things, the draft guidelines provide practical advice on good re-employment practices, including:

• giving employers the flexibility to employ and retain older workers beyond the minimum statutory age of 62;
  
• offering practical solutions to help employers put in place the necessary systems and processes for re-employment, such as pre-retirement planning and re-employment consultation, job arrangements for re-employment, adjustments to wages and benefits, and the offer of employment assistance payment (EAP); and
  
• encouraging older workers who are adaptable and skilled to continue to work and contribute to the society.

The public may provide feedback and views on the draft guidelines via the Consultation Channel in the REACH portal by December 18, 2009. The tripartite partners expect to finalize and release the guidelines early next year. Source: Ministry of Manpower Press Release (November 16, 2009)

AARP Issues Report on Job Training for Older Workers in Alabamat

According to AARP, over the past five years, 59% of Alabama workers age 40 and over have participated in job-related skills training or education programs offered to them by an employer, and 86% of them indicate they personally have not had to pay for that training. These are some of the results of a survey commissioned by AARP to gain a deeper understanding of the perspective, skills, and needs of older workers in the state to better provide them with focused, targeted information and resources.

The full report "Job Skills Training and Opportunities: Opinions and Perceptions of Alabama Workers Age 40+", authored by Jennifer H. Sauer and Cassandra Burton, also finds that 86% of older workers are satisfied with the work-related training opportunities offered through their employers, with 60% saying they are extremely or very satisfied, and another 26% indicating they are somewhat satisfied. Looking forward, 51% said they were extremely or very likely to engage in any job training through their employer over the next five years, but 31% said they were not likely to do so. In addition, 52% did not think that additional job training would help them advance in their job or help get a better job.

On worker attitudes towards employment as they get older, the survey reports that, among all Alabama workers and those looking for work, 40% plan to continue working at their current job either full or part-time when they reach retirement age. "For the majority of respondents, needing or wanting additional income (84%), enjoying work (84%), building up a personal savings (79%), and maintaining health coverage for themselves or their families (72%) are major/minor factors in deciding to work beyond retirement."

Source: AARP Knowledge Management Survey Report (October 2009)

United Kingdom: Study Released on Employers and Aging Workforce

According to research conducted by the United Kingdom's Institute for Employment Studies and the Policy Studies Institute, only half of employers have a formal pro-age recruitment policy, and many are nervous of discussing age issues with workers as they approach retirement. However, many businesses are open to making adjustments to the workplace to help retain staff if the issue is raised on an informal basis.

The report "An Ageing Workforce--The Employer’s Perspective", authored by Helen Barnes, Deborah Smeaton, and Rebecca Taylor and funded by Nuffield Foundation, explores the attitudes of employers towards older workers, the range of interventions in place to prevent early exit and facilitate their continued employment. The report found that many employers are happy to let people carry on working after the normal retirement age of 65, and many would also be happy to see compulsory retirement abolished, but that they need support to get the best out of more mature workers.

According to Barnes:

The role of line managers is crucial here. Employers must make a greater effort to communicate with staff and highlight that alternative working arrangements are a possibility, and that staff have a degree of choice in the run-up to retirement age. Employees on their part also need to be better informed of their rights to help encourage them to engage with their employer.

Other findings include:

• Formal pro-age recruitment policies and age management policies are more common in larger organisations.
• Some employers did express reservations around older workers, where they did not match their customer demographic or there was a heavy manual element to their work.
• Health is still largely regarded as a private, individual matter rather than a concern for employers beyond meeting specific health and safety regulations.
• Some employers simply do not have any experience of staff retiring, often because they have a small business or a new business with a young workforce. Larger employers were familiar with the retirement process and more often had policies in place to manage the process.
• Older workers in sectors with skills shortages are recognised as a valuable resource, and employers are keen to retain them.

In addition, a summary of the report is available.

Source: Institute for Employment Studies Press Release (October 21, 2009)

Urban Institute Research Shows Increase in Older Worker Labor Participation Rates

Growing concerns about retirement income security appear to be leading to an increase in seniors’ labor force participation rates stems, according to a report from the Retirement Policy Program of the Urban Institute. "Rising Senior Unemployment and the Need to Work at Older Ages" also reports that unemployment rates for older workers reached record levels in 2009, partly because fewer workers eligible for early retirement benefits are dropping out of the labor force. With more older workers remaining in the labor force and searching for work after they lose their jobs, the there is an imperative for new policies that help address the special challenges that older job seekers face.

Unemployment has serious consequences at older ages. It usually takes older workers an especially long time to become reemployed. The earnings lost while out of work certainly make it more difficult for unemployed people to meet current spending needs. But unemployed older workers also forgo Social Security and pension credits and are less able to save, leaving them with less money in retirement. When older workers become reemployed, they usually end up earning much less than they did on their former jobs.

Among other things, the report calls for the federal and state governments to improve workforce development programs. They need additional funding and be redesigned to better serve workers of all ages. In addition, Congress could change Medicare secondary payer rules to require the federal health insurance program to provide primary coverage to workers age 65 and older with employer-sponsored health benefits, instead of forcing these older workers to rely primarily on their employer’s insurance.

Source: Urban Institute Press Release (September 23, 2009)

Research: Lower Income Unemployed Older Workers Facing Economic Crisis

ExperienceWorks has released a research report finding that 46% of low-income unemployed workers age 55 and older need to find jobs so they don’t lose their homes or apartments, and approximately half (49%) have been looking for work for more than a year. The research was based on a survey of 2,000 people enrolled in the Senior Community Service Employment Program (SCSEP)

According to "Overlooked and Underserved: The Crisis Facing America’s Older Workers, 38% of these older workers had retired but they are going back to work, and many have no end in sight for their working years. For those who do have a retirement time frame, the average targeted retirement age is 72. In addition, 90% of survey respondents age 76 and older plan to continue working in the next five years.

“These people are at the age where they understandably thought their job searching years were behind them,” said Cynthia Metzler, president and CEO of Experience Works. “But here they are, many in their 60s, 70s and beyond, desperate to find work so they can keep a roof over their heads and food on the table.” Forty-six percent of these older job seekers say they sometimes have to choose between paying rent, purchasing food or purchasing medication.

In addition, according to the report, older workers say the poor economy and age related barriers including lack of the necessary training are the most significant challenges they face to finding employment. 73% strongly agree or somewhat agree that their age makes it difficult for them to compete for jobs with younger workers.

“This study underscores the need to create policies that remove barriers to employment for older workers, and provide additional programs and services specifically aimed at helping older people re-enter the workforce or remain working,” said Metzler. “These actions will benefit everyone because training programs such as the SCSEP have proven to be successful in helping unemployed older workers transition to unsubsidized employment.” The SCSEP, which is the only federal program designed specifically for older low-income workers, is currently funded to serve less than 1 percent of the eligible population.

Source: Experience Works Summary (September 22, 2009)

AARP Announces 2009 Best Employers for Workers over 50

AARP has announced its annual list of the 50 best employers in the United States for workers 50 and over, and, for the first time one employer--Cornell University--has repeasted as the top finisher.

“AARP is delighted that Cornell has placed first for the second year in a row in the Best Employers program,” said Deborah Russell, AARP’s Director of Workforce Issues. “The university is famed for its creative academic policies and its approach to 50 and over workers is no different. It has continued to innovate with new programs in the past year.”

Among the programs offered by Cornell, noted AARP, are a formal phased retirement program for faculty and staff, telecommuting and compressed work weeks, a retiree health and prescription drug plan heavily subsidized by the university, paid time off for care giving, and access for retirees to continued university education at no charge.

At AARP's Best Employers site, AARP has published its list of the top 10 innovative international employers and, for the first time, a separate hospitals and health care best employers honor roll.

Source: AARP Press Release (September 9, 2009)

Japan: Workers Over 60 Increase to 10% of Workforce

According to survey results from Japan's Ministry of Health, Labour and Welfare, workers aged 60 or older comprised 10% of full-time employees for the first time in 2008. In addition, almost 60% of employers had such senior employees. The 10% rate represented an increase of 2.4 points from 2004 and over doubling from the 49.% rate in 1992.

Among other findings, 50.2 per cent of responding businesses employed workers aged 60 to 64, 26.9 per cent employed workers in the age bracket of 65 to 69, and 15.6 per cent had people aged 70 or older on their payroll.

Smaller establishments tended to have more elderly workers, the ministry said. For example, the rate of senior employees there was 12.0 per cent at those employing five to 29 workers.

By sector, real estate had the highest rate at 18.1 per cent, followed by transportation with 14.9 per cent and mining with 13.7 per cent.

The survey also found that 89.1 per cent of businesses with a mandatory retirement age of 60 to 64 had programs to continue employing workers after the limit.

Source: Business Standard "60% businesses employed senior people in 2008: Poll" (August 21, 2009)

Europe: Consultation Opens on Designating 2012 Year for Active Ageing and Intergenerational Solidarity

Following on April's conference on intergenerational solidarity, the European Commission has been receiving calls to organize a European Year for Active Ageing and Intergenerational Solidarity. The purpose would be to increase the awareness of the contribution of older people to society and spread innovative measures that could help to mobilize the full potential of the ageing baby-boom cohorts.

Accordingly, it has launched a consultation with the purpose to collect ideas and suggestions from key stakeholders and experts on how to achieve the greatest possible impact with such a European Year and to help the Commission decide whether and how to organize a European Year. There are separate questionnaires for citizens, organizations, and public authorities. Responses to the questionnaire, which is meant to help respondents in structuring their response to this consultation and the Commission in analyzing the responses, should be submitted by the 31st of July 2009, preferably in English, French or German.

Source: European Commission News Release (July 17, 2007)

Study: Younger Workers Hurt More by Recession; Older Workers Show Resilience

According to a study published by Boston College's Sloan Center on Aging & Work, younger workers are bearing the brunt of the current economic crisis, while older employees show greater resiliency in a recession-battered workplace where employers seek to do more with less. Specifically, in "The difference a downturn can make: Assessing the Early Effects of the Economic Crisis on the Employment Experiences of Workers", while researchers found employees of all ages reporting a drop in employee engagement (a measure of how invested and enthusiastic employees are in their work),

Workers among "Generation Y" – ages 26 and younger – report the greatest decrease in engagement. Those slightly older workers in "Generation X" – ages 27 to 42 – reported less of a decrease, while Baby Boomers and older "Traditionalists" – ages 43 or older – reported that their levels of engagement hardly changed at all.

Marcie Pitt-Catsouphes, director of the Center, suggests that "[s]ome older workers have been through recessions before and that gives them experiential resilience." Furthermore, she comments that "[s]avvy employers will leverage older workers' experience to help younger workers manage through turbulence," and "hat sense of resilience can help organizations remain energized and passionate."

Source: Sloan Center on Aging & Work Stages (June 2009)

Australia: Study Suggests Blue Collar Workers More Likely To Delay Retiremement

According to news reports, researchers report that Australian baby boomers' expected retirement age is now reaching 64.3 years and that it is blue-collar boomers--more likely to struggle with the physical demands of working into their late 60s than white-collar workers--who are bumping up the expected retirement age. According to a paper "Which of Australia’s Baby boomers expect to delay their retirement? An occupational overview" by University of Tasmania social researchers Natalie Jackson and Maggie Walter to be presented on July 9, "Professionals and Associate Professionals--many of whom hold so-called "critical skills" which are central to the functioning of many businesses, organisations and departments--have the youngest expected retirement ages, while Labourers and Production/Transport Workers have the oldest."

In comparing expected and preferred retirement ages, Jackson and Walter find that the gap between the two is generally bigger for blue-collar than office workers, with "insufficient financial resources to support retirement" cited as the main reason. For example, tradespeople in the automotive sector expect to retire at a median age of 66.1 years, but their preferred age of retirement is 58.3.

Overall, the study shows a rapid rate of change in the expectations of Australian workers towards retirement. "As recently as 1997, average age of retirement was 58 for males and 41 for females," it notes. "Our overall finding is of a median expected retirement age of 64.3 years for workers aged 40-59 in 2006."

Source: The Australian "Baby boomers ready to work longer" (June 1, 2009)

United Kingdom: Older Workers Worried about Recession

Workers aged 50 and over in the United Kingdom are worried about a recession double whammy according to a survey released by Help the Aged and Age Concern: afraid they will be forced out of their jobs due to their age and worried that their retirement incomes will be decimated by the recession. On the job front, 28% fear that their age will see them forced out of jobs if their employer decides to reduce staff numbers due to the economic downturn; and on the retirement income front, 47% said they are less confident than six months ago that their pension and savings will provide them with a comfortable standard of living in retirement.

This situation means for many‚ continuing working and retaining earning potential is more important than ever before. A massive 60 per cent of respondents said the recession has meant they will have to or want to work longer than originally planned. Yet‚ the economic situation and the lack of support available for over 50s who do lose their job will leave many of them permanently out of work and facing a long and difficult retirement.

Source: Age Concern News Release (May 26, 2009)

OECD Urges Countries: Don't Lump Older Workers among Disabled

Addressing policy challenges for disabled workers in a time of high unemployment, the OECD co-sponsored a High-Level Forum on Sickness, Disability and Work and, in its final communique, warned against repeating the mistakes of the past where in previous economic downturns, many older workers who lost their jobs were pushed onto disability benefit rolls rather than unemployment benefit schemes.

"While this may seem a harmless short-term measure, we now know that most people who receive a disability benefit for more than a year will never work again," said John Martin, OECD Director of Employment, Labour and Social Affairs. "It is crucial that governments align short-term social protection measures taken in response to the downturn, with longer-term goals of economic security and strong labour force participation."

As one of the background papers showed, older workers dominate the disability benefit rolls.

For links to other information, see OECD's "Sickness, Disability and Work" project.

Source: High-Level Forum on Sickness, Disability and Work Final Communique (May 15, 2009)

Research: Second Careers for Older Workers

AARP's Public Policy Institute has published a research report examining the characteristics of workers who change careers in late life, finding, among other things that later-life career change seems to be an important part of the retirement process. According to "Older Workers on the Move: Recareering in Later Life", authored by Richard W. Johnson, Janette Kawachi, and Eric K. Lewis of The Urban Institute, nearly two-thirds of workers who change jobs (and 27% of all older workers) switch occupations.

Called such career changes "recareering," the study reports that workers who change careers typically move into jobs that pay less and offer fewer benefits. However, the new careers tend to offer more flexible work arrangements, less stressful working conditions, and fewer managerial responsibilities. For workers interested in delaying retirement after long careers, such jobs may be just what they are looking for. In addition, the study finds that late-life occupational change is more common among men because women are less likely to continue working if they leave an employer in their fifties.

The research concludes that later-life career change seems to be an important part of the retirement process. Many changers later in life appear to be pushed into new lines of work involuntarily following job layoffs or business closings. Others, however, appear to place a high premium on leaving 9-5 work and moving into more flexible positions, even at less pay. Some older workers may change careers in hopes of finding more meaningful jobs that give added purpose to their lives.

Source: AARP Public Policy Institute Research Report (May 2009)

Europe: First European Day on Solidarity between Generations

The European Commission declared April 29 the first "European Day on Solidarity between Generations." In conjunction with that, various events took place throughout Europe.

"Over the coming years, the first baby-boomers will be starting to retire. This marks the beginning of a fundamental shift in the balance between retirees and people of working age. We have to make sure that ageing will not undermine solidarity between generations", said Vladimír Špidla, Commissioner for Employment, Social Affairs and Equal Opportunities.

Among other things:

• a conference on "Intergenerational Solidarity for Cohesive and Sustainable Societies" was organized by the Slovene Presidency in Brdo, seeking "to reinforce social links between generations as well as to initiate a shift in policy-making to promote greater solidarity between generations."
• the results of a Flash Eurobarometer on "Intergenerational Solidarity" was released. It showed considerable disparity in views about the generations among older and younger people. With respect to working, 56% of Europeans believe that as people work to an older age, fewer jobs will be available to younger workers.
• Eurofound launched a special website which brings together its recent findings, data and recommendations on issues related to the employment of older people, and active ageing issues, and the solidarity between generations.

Source: European Commission "Intergenerational solidarity: key to responding to demographic ageing" (April 28, 2009)

China: Study Points Pension Reform to Deal with Coming Age Wave

A report from the Center for Strategic & International Studies warns that the aging of China’s population could usher in a new era of slower economic growth and mounting social stress as tens of millions of Chinese arrive at old age over the next few decades without pensions and with inadequate family support. The authors of "China’s Long March to Retirement Reform: The Graying of the Middle Kingdom Revisited" evaluate recent government efforts to prepare for the challenge and outlines an ambitious new reform plan and argue that, despite the current economic situation, delay in addressing address the long-term aging challenge is not an option.

Among other things, Richard Jackson, Keisuke Nakashima, and Neil Howe present a plan that provides for a universal poverty backstop that would protect all Chinese against an uncertain old age, and that would also create a national and fully portable system of funded retirement accounts. This would allow China to care for a much larger number of older people without overburdening its smaller working generation and help China to maintain rates of savings, investment, and living standard growth as its population ages. With respect to retirement age:

The minimum retirement age would initially be set at 60 for men and 55 for women, just as it is in the current basic pension system. These low retirement ages are necessary because today’s older workers often do not have the skills to compete in China’s rapidly modernizing economy. But as these workers are replaced by younger and higher-skilled cohorts and as China’s population ages, longer work lives will not only become feasible, but essential. Our plan therefore provides for gradually raising the minimum retirement age for both sexes to age 65 by 2030, after which it would be indexed to longevity.

Sources: Center for Strategic & International Studies Summary (April 22, 2009); Reuters "Age wave to come crashing soon over China's economy" (April 27, 2009)

AARP Research Report Explores New Means for Transitioning to Retirement

An AARP research report has been published exploring the concern that policies being explored to extend working lives—-and delay the claiming of Social Security benefits—-as a means to ensure workers' retirement security and Social Security's finances may inflict real hardship on some older workers who retire earlier because of health and related problems. Accordingly, in "Employment Support for the Transition to Retirement: Can a New Program Help Older Workers Continue to Work and Protect Those Who Cannot?", David Stapleton of Mathematica Policy Research, Inc., proposes a new program--Employment Support for the Transition to Retirement (ESTR)--that could help “break the deadlock” that stymies efforts to adopt policies that encourage later retirement.

Stapleton's vision of ESTR is that it would provide assistance to workers who experience large involuntary earnings losses as they approach age 62. It would provide a wide range of benefits, tailored to individual need—including wage subsidies and other work supports, health insurance subsidies, disability benefits, extended unemployment benefits, and employment counseling. While not individually new, what is new is the idea of a substantial and coordinated expansion of these elements in the context of retirement policy reform.

Source: AARP Research Report In Brief (April 2009)

Thailand: Aging Population Leading to More Workers over 60

Thailand’s population is aging faster than any other in Southeast Asia except Singapore, according to a new study by the International Labour Organization (ILO), and this will affect the country’s productivity and socio-economic development. In "Decent work for older persons in Thailand," Rika Fujioka, of the ILO’s Regional Economic and Social Analysis Unit in Bangkok, and Sopon Thangphet, Policy and Plan Analyst with the Northern Regional Economic, found that more people over the age of 60 are now continuing to work, although often in unfavorable working conditions with insecure incomes and limited social protection. The data also suggest that the daily or hourly wages that older people receive are much lower than those of other employed people, and that the majority of older people consider their incomes to be insufficient.

Among the report's recommendations:

• Promoting employment opportunities for older persons is both timely and indispensable for enhancing Thailand’s productivity and socio-economic development.
• Expanding the sectors where older people can find work. Many currently work in agriculture but other potential sectors include commerce, manufacturing, transport, storage, communications and, in rural areas, community-based cottage industries.
• Increasing the income-generating potential of older people is essential, to mitigate the large gap between the over 60’s and younger workers.

Source: International Labour Organisation News Release (April 13, 2009)

Study Shows More Californians Working Longer

According to a report issued by the California Budget Project, employment rates of Californians at or near retirement age continued to rise even during the economic downturn. Specifically, in 2008, 63% of people age 55 to 64 were employed, up from 58.4% in 2000 and 54.8% in 1995 after having been fairly stable before then (1995 was just up 1.2% from 1979). For older workers, those 65 to 69, 29.7% were working in 2008, up from 22% in 2000.

When looking at the numbers on a gender basis, the Budget Project found that the trends for men and women aged 55 to 69 varied. While about half of women are still working, a figure that has climbed steadily from 32% in 1979, the percentage of working men declined from 58% in 1979 to 51% in 1995, then rebounded to 60.7% in 2008.

Looking more closely at the current economic downturn, older workers have been increasing their participation rates while they drop for younger workers. Thus, the share of Californians age 55 to 64 who were employed increased by 0.9% between 2007 and 2008 (from 62.1% to 63%) and the employment rate of Californians age 65 to 69 rose by 4.5% (from 25.2% to 29.7%), while the share of Californians age 25 to 54 who were employed declined by 1.2% 2007 and 2008.

Sources: California Budget Project Policy Points (April 2009); San Jose Mercury News "More Californians working later in life, especially women" (April 7, 2009)

United Kingdom: How Age Diversity Can Help Business during Downturn

Nicola Brewer, the Chief Executive of the United Kingdom's Equality and Human Rights Commission, said that employers who retain the skills and experience of older workers will be better placed to emerge from the recession. Speaking at a one-day conference organized by the Commission and the Age and Employment Network on "Age Diversity in the Downturn," she lso argued that the economic downturn should not be used as an excuse to justify redundancy on the grounds of age.

"We already have more people in the UK over state pension age than under 16, and, within 15 years, a third of the workforce will be over 50. Embracing the skills of older workers should be a top priority--unless we are prepared to miss out on a third of the available talent pool."

Her words were echoed by The Commission's Policy Director Alan Christie, Policy Director at the Commission, who said "We must stop stereotyping and worrying about how many candles a worker has on their next birthday cake, instead of looking at what they can offer. It's important to recognise that flexibility can help business weather the difficult times and prepare for the recovery, by attracting and retaining vital talent and skills, including older workers."

Source: Equality and Human Rights Commission News Release (March 20, 2009)

United Kingdom: Study Finds Lack of Training and Learning Opportunities for Older Workers

The University of Leicester's Centre for Labour Market Studies has released a study with a stark warning about the lack of training and learning opportunities for older workers. The report--"Older Workers – Older Learners"--prepared for the Learning and Skills Council East Midlands shows "show the lack of preparedness that the region and society as a whole have towards the ageing of our workforce and of society more generally. Yet the ageing workforce is one of the more valuable assets a business can have."

According to Dr. Vanessa Beck, who led the project, while it was disappointing to find the lack of preparedness and the extent to which learning and training opportunities were taken up, "it was surprising to see that on an individual and organisational level, there are a whole host of practices in place that can benefit older workers as well as the organisations that employ them."

Practices and policies already in place that could, in some form, benefit older workers include flexible working; Apprenticeships enabling them to move into different areas of work; structured learning and training supported by the Train to Gain service, Skills Pledge, Skills Accounts, and Foundation Degrees accrediting expertise older learners already have; reward systems; and positive age awareness management.

Older workers are valued for their experience and expertise, knowledge which can be passed on to younger colleagues either formally through apprenticeship assessment or informally as mentors in the workplace.

Source: University of Leicester Press Release (March 10, 2009)

Insurance Group Recommends Making Workplace Modications to Prevent Injuries to Older Workers

According to a new white paper by the PMA Companies, older workers are a benefit to the companies that employ them, but injuries to older adults tend to be of higher severity. Thus, U.S. companies should consider making workplace modifications that prevent injuries.

"Capitalizing on an Aging Workforce," authored by Ken Nogan, Risk Control Consultant at PMA Insurance Group, reports that since 1977, the number of people 65 and older in the workforce has increased more than 100%. Contrary to expectations, however, as over-55 workers increase in the workplace, so does productivity and overall workplace safety. However, the paper finds that, when older workers do experience injuries, severity can be significant, which is an issue that must be considered by safety professionals. Specific recommendations were made to help implement risk control measures designed for the needs of older workers, including:

• Slip and fall prevention: Falls alone account for more than one-third of all injuries sustained by workers 65 and older, and it takes an older worker two to three times longer to recover from an injury than a younger counterpart.
• Safe driving: Death rates for work-related roadway crashes increase steadily beginning at around age 55, and older drivers are more likely than other drivers to have a crash at an intersection or when merging or changing lanes on a highway.
• Return to work: Because claim statistics reflect a connection between increased healing time and age, there is a need for highly responsive return to work efforts for older workers.

Source: PMA Companies News Release (March 4, 2009)

Denmark: Survey Finds Workers in Health and Social Services Industry Delaying Retirement

According to a survey conducted by Pensionskassernes Administration (PKA), fewer PKA members in the health and social services industry are retiring than earlier. The number of active members over the age of 60 has increased from 13,500 to 18,000 between 2005 and 2008, while the proportion of health workers retiring at 60 fell to 13.2% in 2008.

"It surprises us that things are going that way--fewer retire when several have been given the option. It is of course positive for society, because especially in the health sector are labor shortages. But it is also good for the individual who will receive a higher pension by deferring the retirement age a few years, "says member manager of PKA Britt Brandum. [Google Translate from Danish]

According to Brandum, the vast majority of PKA members, around 90%, are women who have a life expectancy of around 85 years. Thus, when those whose choose to retire at 60 face a long retirement period of 25 years.

According to Peder J. Pedersen, professor of Velfærdsforskning at the Department of Economics, University of Aarhus, and a member of the Employment Commission, the figures are interesting and reflect a stated desire of employers for older workers to work a few extra years because of labor shortages. While if this progress continues, the shortage of manpower in the health sector will be easier, but to close the gap completely, it must be something more dramatic.

Sources: Pensionskassernes Administration Nyt fra PKA (February 26, 2009); Investment & Pensions Europe "Fewer Danish health workers are retiring early" (February 27, 2009)

Senate Aging Committee Takes on Older Worker Issues

Following the release of GAO's report of federal government hiring of older workers, Senator Herb Kohl (D-WI), Chairman of the Senate Special Committee on Aging, joined by several other Senators, has introduced three bills to make it easier for older Americans to either reenter or remain in the workforce. In addition, the Committee has held a hearing to examine how the poor economy is affecting those nearing retirement.

The proposed legislation includes: (1)"The Older Worker Opportunity Act of 2009," which would diminish the barriers to part-time work for older workers, such as loss of health coverage and decreased pension benefits, by providing a tax credit for employers that employ older workers (age 62+) in flexible work programs, (2) a bill (S. 469/H.R. 1198) to make it easier for the federal government to rehire federal retirees part-time, without forcing the employee to reduce their salary by their pension amount, as under current law, and (3) a bill to allow phased retirement for federal employees under the Civil Service Retirement System. In addition, Kohl has reintroduced the "Health Care and Training for Older Workers Act of 2009" (S. 281), which would extend COBRA health insurance from the time of retirement (ages 62 and up) until seniors become eligible for Medicare at age 65.

At the Committee hearings on "Boomer Bust? Securing Retirement in a Volatile Economy," testimony was provided on "the economic downturn’s effect on retirement security, particularly for those who are on the brink of retirement. Witnesses at the hearing offered insight into the myriad factors that are affecting the ability of baby boomers to retire, including the weakened performance of 401(k) funds, the instability of housing values, and the challenges of the labor market for older workers, all of which are contributing to diminished prospects for a secure retirement."

Sources: U.S. Special Committee on Aging Press Release (February 24, 2009); Press Release (February 25, 2009)

United States: GAO Report Recommends Increased Communication among Agencies to Enhance Retention and Hiring of Older Workers

The U.S. Government Accountability Office (GAO) has issued a report recommending that Office of Personnel Management (OPM) broadly disseminate agency-developed promising practices to hire and retain older workers. In putting together "Older Workers: Enhanced Communication among Federal Agencies Could Improve Strategies for Hiring and Retaining Experienced Workers", GAO interviewed officials at three agencies with high proportions of workers eligible to retire and identified agencies’ promising practices to hire and retain older workers.

GAO notes that the proportion of federal employees eligible to retire is growing. In fact, at four agencies—-the Agency for International Development (USAID), the Department of Housing and Urban Development (HUD), the Small Business Administration, and the Department of Transportation-—46% of the workforce will be eligible to retire by 2012. However, GAO also notes that the federal government has historically enjoyed relatively high retention rates, with 40% or more of federal employees remaining in the workforce for at least five years after becoming eligible. In addition, in fiscal year 2007, federal agencies hired almost 14,000 new workers who were 55 years of age or older and brought back about 5,400 federal retirees to address workforce needs.

The three agencies GAO examined rely on older workers in different ways: USAID brings back its knowledgeable and skilled retirees as contractors to fill short-term job assignments and to help train and develop the agency’s growing number of newly hired staff. SSA uses complex statistical models to project potential retirements in mission critical occupations and uses these data to develop recruitment efforts targeted at a broad pool of candidates, including older workers. HUD relies primarily on older workers to pass down knowledge and skills to junior staff. In addition, GAO noted that other agencies have developed practices that are useful in tapping older workers to meet short-term needs, such as the Department of State, which has developed databases to match interested retirees with short-term assignments requiring particular skills.

GAO concludes that while at least three agencies have developed their own practices that show promise in recruiting and retaining talented older workers who have needed and specialized skills, little attention has been paid to sharing it with other agencies. Accordingly, it calls on OPM to "develop a systematic approach, which may include communicating through the CHCO Council, to share information broadly across the federal government about agency-developed promising practices in recruitment and retention of older, experienced workers to meet their workforce needs."

Source: U.S. Government Accountability Office Report Summary of GAO-09-206 (February 24, 2009)

Canada: Report Shows Obesity Affecting Work Performance and Highest among Older Workers

According to research from Statistic Canada, obesity among employees is more than just a personal health issue when it begins to affect job performance, and obesity is most prevalent among older workers aged 55 to 64, 21% of whom were obese in 2005. "Obesity on the Job" points out that this held for both men and women, although the prevalence was lower among women.

Among other things, obesity, especially for women, may have a negative impact on workers more often through presenteeism (that is, reduced productivity on the job) rather than absenteeism. In addition, obese men age 55 to 64 had a higher risk of reducing their work activity due to a long-term health problem.

Source: Statistics Canada The Daily (February 20, 2009)

Survey: Web 2.0 and Social Media Tools May Help Knowledge Retention in Oil Industry

A survey of collaboration tools in the oil and gas industry conducted by Microsoft and Accenture finds that 53% of those surveyed reported that aging workers are retiring in increasing numbers, despite the economy. According to Claire Markwardt, a Houston-based partner with Accenture, employees are retiring because they still see more benefits in accepting the lump sum offered by several oil companies to employees that reach a certain age than in staying longer in their work and waiting to see their retirement plans rebound.

Even though 70% believe that collaboration and knowledge-sharing are important for driving revenue, cutting costs, and contributing to the health and safety of workers, according to the "Oil and Gas Collaboration Survey 2009," the tools primarily used to retain the knowledge and intellectual capital from retiring workers are largely older methods, such as electronic file shares (64%), databases or repositories (58%), and written documents/physical files (58%); in addition, "almost a quarter of respondents reported exit interviews as the tool used most often to capture knowledge from these workers."

Asked to suggest better means of transferring knowledge, the respondents overwhelmingly supported new collaboration technologies. The most beneficial social media tools cited were:

• Internet portals (81%);
• social networking sites (58%);
• video or photo sharing (56%);
• blogs or mini-blogs (44%); and
• wikis (43%).

Sources: Accenture News Release (February 19, 2009); CattleNetwork.com "Older Oil Workers Still Retiring Despite Economic Crisis" (February 19, 2009)

Canada: Economy Leading Boomer Business Owners To Delay Retirement

According to a poll conducted by the Royal Bank of Canada, 37% of Canadian boomers who plan on retiring in the next five years and who own their own business plan on delaying their retirement due to current economic conditions. The Bank's 19th Annual RBC Registered Retirement Savings Plans Poll also found that 28% of Canadian boomers plan on delaying their retirement due to current economic conditions, 43% say their retirement has been delayed between one and two years, 37% say three-to-five years, and 9% say they don't know.

Further comparing business owners to other boomers, the survey found that 32% of retiring boomer business owners say they will never fully retire, 19 percentage points above the Canadian boomer average. 50% of retiring boomer entrepreneurs say they will be semi-retired or working part-time at age 65, compared to 40% of the general boomer population. In addition, only 37% of retiring boomers who own their own business expect to be fully retired at the age of 65, as compared to the Canadian boomer average of 47%.

Source: Royal Bank of Canada Press Release (February 18, 2009)

Urban Institute Issues Policy Brief on How To Help Older Workers Find and Retain Jobs

The Urban Institute Retirement Policy Program and Health Policy Center has issued a policy brief to address the uncertain retirement future that older Americans are facing, focusing on policies needed to shore up Social Security and Medicare, get health care spending under control, and make staying in the labor force at older ages easier, while still protecting disabled workers.

According to "It’s Not Easy Being Gray: The New Rules of Retirement", the recession, changing mixes of retirement programs, and other changes are creating a retirement dilemma that will affect all Americans, not only those nearing retirement. "Workers will be expected to finance a large share of the bill for retirees: fixing government retirement programs could require higher tax burdens for everyone."

The Center convened a roundtable of experts in retirement, aging, health, and long-term care policy, who outlined a number of policy implications, including:

• Because older adults will likely have to postpone retirement and work longer, public policies that encourage early retirement need to be rethought, like the Medicare secondary-payer rule that requires employers—not Medicare—to cover most health care costs for workers age 65 and older.
• Older workers, especially low-income seniors, could benefit from employment services focused on connecting them to jobs and training.
• Older workers may be more willing and able to stay employed if they could work flexible schedules, but since employers in a slow economy may not embrace such options as job sharing, extended leave, and phased retirement, the public sector could step in and take the lead.
• More service providers will be needed as the nation grows older; for example, seniors aged 80 and older will need home care and other services that help them remain in their communities. Younger seniors in good health and with free time could be part of the solution, helping staff the jobs that serve the oldest old.

Source: Urban Institute Retirement Policy Program and Health Policy Center Abstract (February 17, 2009)