Study: Looking at Rising Retirement Ages in United States

The Center for Retirement Research at Boston College has released an issue brief discussing the rise in retirement ages for both men and women aince the mid-1990's. According to "What Is the Average Retirement Age?" by Alicia H. Munnell, the average retirement age in the United States has risen from 62 to 64 for men, and from 60 to 62 for women.

According to Munnell, factors leading to the rising retirement ages include:

• changing incentives in Social Security and employer pensions;
• better education and health coupled with less strenuous jobs; and
• the decline in retiree health insurance.

In addition, she notes that more older women are working today because more of them started working when younger. In addition, the factors leading to the increased retirement ages suggest the trend toward later retirement will continue but risks remain, such as the move away from career employment.

Source: Center for Retirement Research at Boston College Press Release (August 16, 2011)

Research: Age Diversity in the Workplace as Divisive

According to a study presented at the annual meeting of the Academy of Management, in age-diverse companies, employees experience more anger, fear, and disgust, and therefore they consider more often changing their jobs and contribute less to the performance of the company as a whole. The study--“When and why age diversity matters for organizations: A study on the role of affective processes"--was authored by Florian Kunze of the University of St. Gallen, in Switzerland, and Jochen Menges of Cambridge University. Specifically, the authors say:

"In contrast to several studies on the individual level that portray emotion suppression as a demanding and effortful strategy with high social costs, we showed that emotion suppression is an important response pattern for social interactions in age-diverse organizations. This counterintuitive finding suggests that in age-diverse companies these social benefits outweigh, from an organizational-level perspective, the individual costs of emotion suppression."

The study recommends that managers in highly age-diverse companies implement assessment tools such as employee opinion surveys, analyses of employee grievances, or focus group interviews, and that they invest in emotion-regulation capacities, such as through exercises in emotional control or through role-playing dealing with such potentially problematic situations as younger workers' supervising older subordinates.

A Financial Times article on the presentation reports that the authors suggest two reasons for their findings: (1) people bond better with workers their own age, and (2) in mixed age groups, old people get upset when younger ones are promoted over their heads, while young people get upset when an old person is sitting it out in a job, and preventing their advancement.

Sources: Academy of Management Press Release (August 2011); Financial Times "Age-old bonds make the office tick" (August 14, 2011)

Research Study Finds Disparity Between Effects of Arthritis on Blue Collar and White Collar Older Workers

White-collar workers have a higher overall health-related quality of life than do other workers, and suffer fewer quality-adjusted life years (QALYs) lost to arthritis at all ages, according to research published in the September 2012 issue of the American Journal of Public Health. Thus, for example, while 65-year-old white-collar workers without arthritis look forward to 17 QALYs of future life, blue-collar workers with arthritis experience only 11, and are much less likely to remain in the workforce than are those in service, farming, or white-collar jobs.

In "Arthritis, Occupational Class, and the Aging US Workforce," Alberto Cabán-Martinez, DO, at the time of the study a professor in the department of epidemiology and public health at the University of Miami Miller School of Medicine in Florida, and the other authors note that this is a signficant workplace issue because it is often the lower-income individuals who, for financial reasons, need to remain in the workforce longer, despite greater health problems than white-collar workers. Among other things, the research found that, in workers aged 65 and older, approximately 67% of farmers, 58% of those in service, 51% in white-collar occupations, and 47% of those in blue-collar jobs had arthritis.

Dr. Cabán-Martinez says it is important to use studies like this to reinforce the need for workforce change. The authors suggest improving disability and unemployment insurance and arthritis health promotion interventions.

He suggests using ergonomic interventions, or changing the workflow or duties to allow people to remain productive longer. For instance, a nurse or police officer could be reassigned from patient handling or street patrol to perform administrative duties. “Wal-Mart might have an elderly greeter at the door instead of at a labor-intensive job so it is not so burdensome on the joints and body,” he says.

Source: Arthritis Today"Arthritis Hits Blue-collar Workers Harder" (August 12, 2011)

United Kingdom: Fifty Plus Unemployed Face Challenges in Labor Market

Research conducted by the Department for Work and Pensions shows that unemployed workers aged 50 and older take longer to get back to work and are at greater risk of drifting into long-term unemployment or prolonged economic inactivity. The study--"Qualitative Research into Enhanced Jobseeker’s Allowance Provision for the 50+"-- suggests that older newly redundant claimants have a number of key barriers to work that stem from having long work histories e.g. the lack of a CV, lack of job application experience and lack of familiarity with the modern labour market and with online job application procedures.

The report looks at the effects of measures introduced in April 2010 to help Jobcentre Plus advisers deliver an enhanced service to those aged over 50 and claiming Jobseeker’s Allowance (JSA). The additional support introduced for the 50+ took the form of three voluntary measures: access to work trials from day one; entitlement to an extra 30 minutes of adviser time; and eligibility to be fast tracked to Stage 3 of JRFND. Enhanced adviser training was introduced at the same time to support the changes.

Source: Department for Work and Pensions Press Release (August 11, 2011)

Australia: Government Appoints First Age Discrimination Commissioner

The Australian government has announced the appointment of Susan Ryan as Australia’s first full-time Age Discrimination Commissioner. According to Attorney-General Robert McClelland, "[i]n her new position of Age Discrimination Commissioner, Ms Ryan will be a dedicated advocate not only older Australians, but also young people who might be affected by age discrimination." Among other things, her job will be to operate as part of the Age Discrimination Act to tackle age discrimination in workplaces and in the wider community.

Minister for Mental Health and Ageing Mark Butler said that "Australians have the fifth longest life expectancy in the world, and we all want a future where we are treated fairly and valued for our contributions." In addition, he noted that Australia needs more employers and the broader community to appreciate the important qualities and skills older Australians bring to the workplace and public life, something the Commissioner can help bring about.

Sources: Australian Human Rights Commission News Release August 1, 2011; Office of Attorney General News Release (July 30, 2011)

Denmark: Tax Board Rules That Employer Health Check for Seniors Is Taxable Benefit

SKAT, the Danish tax authority, has ruled that an employer's provision of a health check for employees 55 and over designed to help encourage employees to continue working instead of retiring and accepting a pension cannot be provided tax free. According to SKAT, tax free provision of benefits is only allowed only when it is part of an employer's general personnel policy for all company employees, and not when offered only to some employees.

Sources: SKAT Tax Board File No. 10-203449 (June 21, 2011); BDO Chartered Account Co. Newsletter (July 5, 2011)

Canada Gets High Marks for Responding to Aging Workforce

According to a new research report by Schroders, Canada has been facing up to the economic challenges of an aging population, but will still need to do more. The authors--Virginie Maisonneuve, Head of Global Equities at Schroders, and Katherine Davidson--conclude that Canada has been quick to recognize its impending demographic transition and adjust its institutions accordingly. The only ways to break the relationship between reduced labor supply as baby boomers retire and lower GDP growth is "to increase immigration or raise participation rates, especially of older workers" and Canada is doing just that.

The report says, however, that future growth will have to be driven by improvements in labor productivity and Canada is expected to face the highest age-related spending of any OECD member state. Here, too, Canada looks to be in good shape, with a strong record in controlling costs. For example, it spends 10% of GDP on health care versus the US at 16%, and it relies less on the state for pension provision with private pensions and other investments providing over 40% of retirement income, compared to the OECD average of 20%.

Source: PR Newswire News Release (July 21, 2011)

Massachusetts: Two Reports Focus on Rise in Older Worker Population and on Retaining Older Workers

Commonwealth Corporation released two new reports focusing on the aging population in Massachusetts, its effect on the labor supply, and strategies for retaining older workers. Among other things, according to the reports, by 2020, almost 27% of Massachusetts workers will be age 55 or older, Already some industries have a high percentage of older workers--in education and health services, almost a quarter of employees are 55 or older, and in repair, maintenance and personal services, the number is 28.2%.

One report--“The Increased Presence of Older Workers in the Massachusetts Labor Market”--provides an overview of trends in the labor force among the nation's older population and presents more recent labor market outcomes of older workers in the nation and in Massachusetts. This report also examines the industries and occupations in which older workers in Massachusetts are employed and the change across the different industries/occupations.

The other report--“Retaining Older Workers”--summarizes the projects that participated in Commonwealth Corporation's Older Worker Retention Strategies Grants funded by the Workforce Competitiveness Trust Fund and presents findings and lessons learned from the pilot projects.

The reports are joint projects of Commonwealth Corporation and the Center for Labor Markets and Policy at Drexel University and Community Matters, respectively.

Sources: Commonwealth Corporation News Release (July 20, 2011); Boston Globe "A jobs pinch for the ages" (July 21, 2011)

United Kingdom: TUC Report Finds Improved Job Market for Older Workers and Retirees Since 1992

A report issued by the UK Trades Union Congress (TCU) finds that the years since 1992 have seen a significant increase in the proportion of over-50s and people over retirement age in employment. According to "Age and Gender: What has changed in the labour market in recent years," among other things, the percentage of people aged between 50 and 64 in work has risen from 56.5% in April 1992 to 64.9% in December 2010, and, over the same period, the proportion of those aged over 64 in work rose from 5.5% to 9%.

While the report also reveals that young people have become less likely to be in employment over the same period, TUC General Secretary Brendan Barber said that "It is a mistake to blame older workers for youth unemployment--they tend not to be doing the jobs young unemployed people might expect to get." Barber also said:

'Older people bring a wealth of skills and experience to the workplace. The increasing number of over 65s in work shows that older workers are highly valued and that the government is absolutely right to scrap the default retirement age.

'But there is a darker side to people to working beyond their retirement. Low wages and poor pension provision, particularly in the private sector, mean that many people simply cannot afford to retire at 65. The failure of far too many employers to help staff save for their retirement is forcing these people into pensioner poverty and placing a huge cost burden on the state.

Source: Trades Union Congress Press Release (July 13, 2011);

Survey Finds Boomers Preparing To Work in Retirement

A survey conducted by SunAmerica Financial Group in collaboration with Age Wave reports that more Americans are expecting to retire later and work throughout it. The "SunAmerica Retirement Re-Set Study" found a significant shift in attitudes and actions since 2001, when SunAmerica conducted its initial landmark retirement study with Age Wave. In particular, it reports that:

• 54% of people 55 and older view retirement as a new chapter in life, rather than a winding down—-up from the 38% that held a similar in 2001
• pre-retirees say they now intend to delay retirement by five years—-from 64 to 69
• almost two-thirds of those surveyed say they would ideally like to remain productive and include some work in retirement to stay active and involved

Source: SunAmerica Financial Group Press Release (July 12, 2011)

Europe: Aging Population Requires Making Full Use of Available Employment Potential

Speaking at an informal meeting of the ministers for labor and social affairs, Leila Kurki, president of the Section for Employment, Social Affairs and Citizenship of the European Economic and Social Committee, said that "future pension funding needs will not be determined by the demographic ratio (ratio of older people to people of working age)" but that "the decisive factor is rather trends in the economic dependency ratio, or in the ratio of people receiving benefits to people in employment.” Thus, governments should focus on effectively increasing labor market participation rate of people of working age rather than focusing on making changes to pension systems, tightening pension conditions, weakening pension rights or raising the statutory retirement age.

“Jobs must be designed so that people are able to work at least up to the statutory retirement age.” Kurki pointed out that this would entail radical changes in working life.

Work and management would have to be organised in a way that accommodated ageing at every stage of a person’s career. Working conditions and the working environment must be adapted to suit workers of different ages. Discrimination and negative value judgments against older workers must be combated.

Updating of professional skills and preventive healthcare were of key importance.

Source: European Economic and Social Committee Press Release (July 7, 2011)

Israel Debates Raising Retirement Age for Women

Although not yet officially released, Israel's Finance Ministry Committee on Female Retirement Age is expected to recommend raising the retirement age for women from 62 to 67, and not to 64, to the same as men, and opposition is coming from many quarters. According to an article in Haaretz, there is widespread opposition in the Knesset, which must approve any changes. In addition, both Talia Livni, president of the Na'amat women's organization, and a representative of the Histadrut labor federation, quit the public committee after the issue turned to raising the age to 67 instead of the original 64 when the the committee was appointed.

An editorial in the Jerusalem Post acknowledges that, since improved medicine and higher living standards are leading to rising life expectancies and an increasingly older population, the recommendation sounds reasonable enough. However, it stated that before the retirement age is raised for women, steps should be taken to ensure more women enter the work force and stay employed longer. Among other things, the Post noted that just 62.2% of women aged 55 to 59, and 6.5% of women aged 65 or older, participated in the job market in 2009, compared to 76.7% and 17.8%, respectively, of men.

Unlike in Europe, where dwindling birth rates, combined with higher life expectancy, has resulted in an increasingly older population, Israel’s balance between young and old is even. Israelis over the age of 65 make up just 9.8% of the population, compared to an OECD average of 14.6%. As a result, the need to raise the retirement age is less pressing here.

We are, nevertheless, outpacing the OECD in the speed at which we are raising the retirement age for women. The average retirement age for women in OECD countries will reach 64 after 2030. If the Treasury has its way, this will happen here in 2017.

Sources: Haaretz (July 1, 2011); Jerusalem Post "A fairer retirement for the fairer sex" (July 5, 2011)

Multi-generational Workplace: Managing the Technology Gap

CIO Inisght has published a series of articles showing employers how, through a combination of policies, programs and tools, it’s possible to bridge the technology generation gap and engage all employees and build a robust and motivated workforce. In them, Samuel Greengard notes that attitudes across generations differ greatly, and cites an Accenture technology strategist saying younger workers are thumbing their noses at IT policies, using nonstandard applications and "improving" things whenever and wherever they deem it necessary.

Greengard's recommendations for organizations to address multi-generational challenges are:

1. Develop a well-reasoned and balanced technology policy and ensure that employees read and understand it.
2. Provide training to workers--particularly older employees who may be well-versed in using email and Web tools, but are lagging in areas such as social media and crowdsourcing.
3. Rethink security and threat management. In this regard, forward looking organizations focus heavily on endpoint security and a more holistic protection model.

In addition, separate articles present:

• a list of five ways to narrow the age gap;
• a case study at UNISYS about bringing one's own device, and
• connecting a multi-generation workforce at a Canadian construction company.

Source: CIO Insight "Managing a Multigenerational Workforce" (June 30, 2011)

United Kingdom: Survey Shows Unemployment, Hiring Issues for Workers 55 Plus

A survey released by Aviva shows that 39% of over-55s have experienced redundancy, enforced early retirement or stopped work due to illness in the run up to retirement, and that 74% say it is harder to find work after their 55th birthday. Breaking down the numbers, "The Aviva Real Retirement Report: Issue Six" reports that Indeed, 15% report being made redundant, 11% were forced to stop work due to illness, and 11% were forced into early retirement.

In reaction to their financial difficulties, 68% of the over-55s said it has had a detrimental effect on their retirement finances, with 34% having to cut back on their lifestyle, 7% worrying about how to pay an outstanding mortgage and 11% considering using assets such as their house to pay for retirement. Nevertheless, the report says that 5% of over-55s saw the "count-down" to retirement as the opportunity to choose to move to "part-tirement" and 3% to start their own business.

In a story following up on the Aviva report, Jo Thornhill writes in This is Money that "The pensions crisis means over-55s will need a 'patchwork' of roles to boost retirement income". This would be a patchwork of part-time work, consultancy, self-employment and leisure time.

Source: Aviva News Release (June 29, 2011)

GAO Issues Report on How To Ensure Income Throughout Retirement

The U.S. Government Accountability Office (GAO), at the request of Sen. Herb Kohl, the chairman of the Special Senate Committee on Aging, has studied and released a report on how best to ensure income throughout retirement, finding that found that while most retirees rely primarily on Social Security, most Americans fail to maximize their benefits.

The report--"Retirement Income: Ensuring Income throughout Retirement Requires Difficult Choices"--finds, among other things, that around 72.8% took benefits before age 65, and only 14.1% took benefits the month they reached full retirement age, noting that, by taking the benefits on or before their 63rd birthday, 49.5% passed up at least 25% to 335 in additional monthly inflation-adjusted benefits that would have been available had they waited until full retirement age.

“As workers near retirement they not only have to focus on saving money but on closely managing their investment throughout their retirement years,” Kohl said. “This report shows that many Americans will need to save much more or work longer in order to avoid the very real risk of outliving their savings.”

Among the report's recommendations:

• Many retirees should delay taking Social Security to increase payments for life.
• Depending on net worth, households also should consider buying a life annuity, particularly if they don't have a traditional pension that guarantees sufficient income.
• Retirees should make withdrawals from their investment portfolio at a rate of no more than 3% to 6% annually at retirement, with adjustments for inflation, to help ensure they won't run out of money.

Source: U.S. Senate Special Committee on Aging News Release (July 1, 2011)

China: Workforce Potential To Decline Due to Aging Population

China's workforce population is at a turning point because of an aging population, according to an Allianz Group. Drawing on latest census, it says that China has a population of around 1.34 billion people, though population growth has nearly halved in the past decade compared to the decade before, and that population aging increased further not least due to the fact that according to estimates some 400 million fewer children were born as a result of the one-child policy introduced in 1978.

"Even if the one-child policy were relaxed or lifted, the decline in the workforce potential could be alleviated but no longer prevented," says Professor Michael Heise, Chief Economist and Head of Corporate Development at Allianz. The turning point for China's labor market will be reached in 2013, according to findings from the recent Allianz Demographic Pulse.

According to Allianz, it is important for China to establish a demographically sustainable social system as a matter of urgency in which capital-funded private provisions play a key role. Among other things, this could include increasing the retirement age to 65 years, thus delaying the demographic turning point by another three years and significantly lowering the age ratio in the long term.

Source: Allianz Group Allianz Demographic Pulse (July 1, 2011)

EBRI: Delayed Retirement May Not Be Enough To Cover Basic Expenses and Health Care

According to an EBRI Issue Brief, many Baby Boomers and Gen Xers would not have adequate income to cover their basic retirement expenses and uninsured health care costs even if they delayed their retirement past the age of 65. A major factor that does make a difference in a person’s ability to meet their basic expenses and uninsured health care costs in retirement, is the whether they are still participating in a defined-contribution retirement plan (such as a 401(k)) after the age of 65.

In "The Impact of Deferring Retirement Age on Retirement Income Adequacy," published as EBRI Issue Brief No. 358, EBRI reports that the lowest preretirement income quartile would need to defer retirement age to 84 before 90% of the households would have a 50% probability of success. "Although a significant portion of the improvement takes place in the first four years after age 65, the improvement tends to level off in the early 70s before picking up in the late 70s and early 80s." At the other end of the spectrum, 75.9% of households in the highest preretirement income quartile are likely to have adequate income for retirement if they retired at age 65. This increases to 81.1% if they keep working to age 69.

In addition, the study noted another major factor in ensuring adequacy: whether stochastic post-retirement health care costs are excluded (or the stochastic nature is ignored).

For the lowest preretirement income quartile, the value of deferral (in terms of percentage of additional households that will meet the threshold by deferring retirement age from 65 to 84) decreases from 16.0 percent to 3.8 percent by excluding these costs. The highest preretirement income quartile experiences a similar decrease, from 12.8 percent to 2.6 percent.

Source: Employee Benefit Research Institute Press Release (June 7, 2011)

United Kingdom: Researcher Argues for Scrapping Pension Retirement Age for Years of Service

As the United Kingdom debates a bill that would equalize a women's pension age with men's at 65 by 2018 then start to rise to 66 along with men's in 2018, one academic is pushing the argument that the government scrap the pension age altogether and instead base entitlement on the number of years someone has worked.

Sarah Harper, Professor of Gerontology at Oxford University and Director of the Oxford Institute of Ageing, and one of the authors of "Living Long and Prospering?" told a BBC interviewer that the pension age would not reflect the discrepancies in individuals' life expectancy, and it would be fairer to move the pensions system away from age and instead relate it to the number of years worked.

As an example, she compared a low-income male, with an unhealthy lifestyle who retired at 65 in ill health, who could expect to live another 12 years, with a high income male, who was a manager and professional who could easily reach his late 80s--an 11-year difference. If there were a 45-year work requirement, their years of collecting a state pension might be very similar.

Harper did note, however, that even under her proposal, provision would have to be made for some groups of people who had been outside the workforce.

Source: BBC "Scrap pension age, academic says" (June 20, 2011)

United Kingdom: Survey Compares Older and Younger Workers on Training Opportunities, Performance Reviews, and Health

The Chartered Institute of Personnel and Development (CIPD) says that a survey found that older workers are often neglected when it comes to training and performance management and cautions United Kingdom employers about the need to ensure they are managing the performance of all employees effectively, particularly before the final phase out of the default retirement age. In addition, the survey "shoots down the myth" that workers’ ability to do their job suddenly declines after they hit 65.

According to CIPD's "Employee Outlook: Focus on an Ageing Workforce," 46% of workers aged 65 and above report they have had a formal performance appraisal either once a year or more frequently, compared to 65% of all employees. In addition, 44% of employees aged 65 and above have not had a formal performance appraisal in the last two years or never, compared to an average of 27%. With respect to training opportunities, the survey found that 51% of those aged over 65 said they had received no training in the last three years or never, compared to 32% across all age groups.

On health issues, the 28% of older workers said their physical ability has declined a lot and 51% saying their physical ability has declined a little. However, while workers aged up to 34 are significantly less likely to report a decline in their physical ability to do their job, thereafter there is little difference between the youngest and the oldest workers, with 17% of 34–45-year-olds saying their physical ability has declined a lot and 51% a little. In addition, 91% of workers aged 65 and above say their mental health is good or very good, compared to a survey average of 74%; 69% of older workers report their physical health is good or very good compared to 64% for workers across all age groups.

Source: Chartered Institute of Personnel and Development Press Release (June 20, 2011)

Research: Costs of Illness and Early Retirement of Older Workers in Australia

Australian researchers have published results showing that illness-related early retirement has significant economic impacts on both the individual and on governments as a result of lost income, lost taxation revenue and increased government support payments, and quantifying the extent of these impacts for Australia. According to "Economic impacts of illness in older workers: quantifying the impact of illness on income, tax revenue and government spending"

[P]ersons out of the labour force due to illness had significantly lower incomes ($218 per week as opposed to $1,167 per week for those employed full-time), received significantly higher transfer payments, and paid significantly less tax than those employed full-time or part-time. This results in an annual national loss of income of over $17 billion, an annual national increase of $1.5 billion in spending on government support payments, and an annual loss of $2.1 billion in taxation revenue.

The authors--Deborah J Schofield, Rupendra N Shrestha, Richard Percival, Megan E Passey, Simon J Kelly, and Emily J Callander--conclude that "In the past, policy has focused upon economic incentives to defer retirement. However, as ill health is a primary barrier to workforce participation in older Australians, economic incentives alone may not be able to increase participation if the underlying health conditions are not addressed. Investment in improvements in health is potentially an important way of improving national living standards."

Source: BioMed Central Public Health Volume 11 Abstract (June 1, 2011)

Global Coaltion Announces "Global Principles on Population Aging" To Transform World Aging Crisis

The Global Coalition on Aging, has issued a call to transform the worldwide "aging crisis" into an opportunity to drive global economic growth by having governments, corporations, NGOs and other stakeholders make a fundamental shift in their policies and priorities. Specifically, the Global Coalition is asking these groups and individuals to adopt their seven "Global Principles on Population Aging."

The principles include statements advocating public-private cooperation in the development of solutions, as well as the adoption of a holistic, optimistic view of aging. They represent the Global Coalition’s core focus areas--technology, innovation and biomedical research; health and wellness; education and work; and financial security. For those focused on the aging workforce, the fifth principle states:

A productive aging society requires a flexible approach to work, retirement and learning that enhances individual contributions to the economy and personal fulfillment over the life span.

With such members as Aegon, Novartis, and Bank of America Merrill Lynch, and through its website, the Global Coalition aims to challenge and provoke corporate and global leaders to rethink and reshape their actions to maximize the potential of population aging.

“This unalterable demographic shift is already challenging our traditional institutions that as designed can only accommodate a fraction of the aging community they now serve,” said Michael Hodin, Executive Director of the Global Coalition on Aging. “These principles--the product of collaboration among our member companies--invite all stakeholders to address the demographic realities of our changing society. It is becoming increasingly clear that the governments, companies and individuals who take action to turn aging from one characterized by dependence and disability to healthy and active will be the winners of the 21st-century competitiveness race.”

Source: Global Coalition on Aging Press Release (June 15, 2011)

Urban Institute Launches Online Data Source for Retirement-Related Statistics

The Urban Institute’s Program on Retirement Policy has launch an online resource for retirement-related statistics called the "Data Warehouse." At the Data Warehouse, users can glean how different aging populations are faring and get a look at long-term retirement trends. Among other things, the Data Warehouse has a specific page dedicated to older workers, on which are collected statistics relating to:

• labor force participation
• employment
• unemployment

Source: Urban Institute Abstract (June 14, 2011)

Focus on Ergonomics for Aging Workforce Can Be Good for Bottom Line

The blog of the National Association for Environmental Management (NAEM) published an interview with Blake McGowan, Ergonomic Engineer with Humantech Inc., who advocates that businesses apply the principles of ergonomics in a systematic and invest in ergonomics for the aging workforce in particular in order to cut costs and enhance performance. According to McGowan:

A lot of companies are also beginning to realize that they need to have experienced workers in their organization in order to be successful. These are the experienced people in the workplace; who have been with the company for many years, who understand the unwritten worlds, how to solve complex problems, so we definitely need to figure out ways to keep them.

Applying ergonomics can be as simple as providing people with correct working heights or changing the way workstations are lit. However, it can also be as complex as reducing strength requirements for job tasks, which could be a big deal, especially in heavy manufacturing.

NAEM also presented a webinar--"Ergonomics of an Aging Workforce"--on May 24, 2011, which continues to be available for purchase online, which explores the dynamics of an aging workforce and the role safety/ergonomics can play in maximizing the potential of a company’s experienced employees.

Source: National Association for Environmental Management The Green Tie Blog posting (May 23, 2011)

Economist Argues Eliminating Earnings Test on Social Security at Age 62 Will Help Retain Older Workers

The Journal of Applied Business Research has published an article by Robert E. Pritchard, professor emeritus of finance at Rowan University, which suggests that eliminating the existing earned income restrictions imposed on Social Security benefits received at age 62 would provide an incentive for people to worker longer, thereby increasing the total economic output and helping to stimulate employment growth.

In his article--"Creating Social Security Incentives for Older Workers to Remain In the Workforce," Pritchard argues that such a change would mean, among other things that, workers would realize a significant increase in income when they continue to work full-time and collect Social Security benefits, giving them an incentive to continue working. Furthermore, he says that once older workers become accustomed to collecting Social Security benefits while still working full-time, they will feel a strong incentive to continue working full-time.

Source: National Center for Policy Analysis Daily Policy Digest (June 14, 2011)

Bank of America Reports Employers Focus on Financial Benefits Plans To Retain Employees

According to a study conducted for Bank of America, 94% of employers believe it is important to retain older employees for a longer period of time before they retire in light of the talent and skills they possess. The Workplace Benefits Report examined ways in which employers are helping to address the financial needs of perhaps the most demographically diverse workforce in history and found that 50% of employers offer flexible or customized work schedules, 33% are implementing education around retirement income and health care topics, 32% offer continuing education and development opportunities, 22% give employees the opportunity to work remotely, and 21% are offering extended benefits to older employees.

In addition, the study notes:

• Employers feel increased responsibility for financial well being of employees.
• Recession and uncertainty of entitlements places increased importance on financial benefits, ignites positive savings actions among employees of all ages<.
• Employers offer a broader range of financial education and advice, though lack of personalization and communication may limit employee engagement.
• Employers look to enhance financial benefit plans to address the changing needs of employees and win the war for talent.

Source: Bank of America Press Release (June 14, 2011)

Europe: Companies Not Meeting Diversity Challenges, Particular of Aging Workforce

A study by The Boston Consulting Group and the European Association for People Management of European companies reports that major European organizations display little diversity in the ranks of their top management. In a Focus report "Hard-Wiring Diversity into Your Business," the two groups analyzed how 444 executives responded to survey questions about the challenges in diversity management and, among other things, found that the business risk caused by demographic change (aging) was cited as the greatest diversity challenge by 48% of the survey respondents.

"Our research has shown that the business case for diversity is clear and that HR needs to integrate such measures into its broader people policies. A modern workplace must represent its customer base in order to be truly effective and to deliver products and services that drive it to the competitive edge in a global environment," explained Stephanie Bird, an author of the report and the director of HR capability for the Chartered Institute of Personnel and Development (CIPD).

The report explains how employee diversity can be increased to advance business imperatives through several steps: (1) creating transparency, (2) redefining recruiting, (3) promoting diversity, (4) building leaders for the 21st century, (5) retaining employees, and (6) making progress visible.

Sources: The Boston Consulting Group Press Release (June 8, 2011); European Association for People Management News Release (June 8, 2011)

Canadian and irish Researchers Find that Older, Rural Workers Satisfied with Non-standard Work

Researchers studying urban and rural workers in Newfoundland, Ontario and Ireland report that the non-standard work often called a "dead-end job" has little impact on the happiness of older rural workers. Of all older (40 plus) rural workers, a majority were found to hold jobs other than year-round, full-time positions--including long- and short-distance commuters, part-time, seasonal, self-employed, early retirees--and generally these workers report being satisfied with their work-life balance, and even those supposedly holding "jobs of moderate or lower quality tend to make the best of their jobs and focus more on their non-working lives."

The researchers were led by Gordon Cooke, an associate professor at Memorial University of Newfoundland, and they presented in two papers at the Congress of the Humanities and Social Sciences, one by Sara Man of the University of Guelph and one co-presented with Deidre Hutchings, MBA student at Memorial University of Newfoundland. According to an article in the Vancouver Sun:

Using a massive Statistics Canada employment survey database including 25,000 employees in 6,000 workplaces, they found that just 6.8 per cent of 40-plus workers hold unskilled jobs with low pay and benefits. Seventeen per cent work in jobs with non-standard hours, but they have high levels of job satisfaction, ranking themselves an average of 3.3 out of 4.

Sources: CNW Group Press Release (June 3, 2011); Vancouver Sun "Older, rural workers OK with non-standard jobs, research shows" (June 5, 2011)

Survey: Top and Bottom Employers by Percentage of Workers over 50

A survey of Fortune 500 companies by RetirementJobs.com reveals that the airline industry has the highest percentage of employees over age 50, with American Airlines held the #1 position with 39% of its staff over age 50. On the other side, technology companies rank the lowest, wtih Google having ust 13% exceeding that age threshold and AECOM Technology holding the #1 positionn with 6.041% of its workforce over 50.

The survey--"Fortune 500 Companies: 2011 Rankings by Prevalence of Workers Age 50+"--is touted by RetirementJobs.com CEO Tim Driver as "helpful to age 50+ job seekers and existing employees to understand which companies and industries tend to employ a disproportionately high or low percentage of mature workers." In addition, he notes that "It is important to remember that while the findings might show where age bias is more or less prevalent, at this point we do not have information on whether or not these employers have committed to hiring older workers. We simply know that they do or do not tend to already employ older workers."

Sources: Retirementjobs.com Press Release (May 31, 2011); Second Act "Companies with the Most Older Workers" (June 6, 2011)

Gallup Poll Finds Many Workers Expect To Work after Retirement Age

Gallup Poll has released survey results finding that 80& of American workers think they will continue working full or part time after they reach retirement age, ithe slightly more (44% to 36%) of them saying they will do so because they "want to" rather than because they "will have to." In addition, the poll--conducted April 7-11, 2011, with a random sample of 534 employed adults, aged 18 and older, living in all 50 states--finds that 63% of workers expect to work part time after retirement age, 18% expect to work full time, and another 18% expect to stop working altogether.

The 80% of current workers expecting to work past retirement age highlights the differences in retirement experience and expectations between current and future retirees. A separate question in the poll found a total of 18% of current retirees saying part-time work is a major (2%) or minor source (16%) of retirement income for them, compared with 74% of nonretirees (including those currently working and those not working) who expect part-time work to be a major (22%) or minor (52%) source of income in retirement.

Source: Gallup Poll News Release (June 1, 2011)

Insurers Report Little Difference in Worker's Compensation Experience Among Worrkers 35 to 64

According to published reports, Research from the National Council on Compensation Insurance (NCCI) suggests that there are little cost differences in the workers' compensation system among workers after the age of 35, up through 64. In a presentation to NCCI's Annual Issues Symposium in Orlando, Harry Shuford, NCCI's chief economist is quoted as saying: "Whatever impact on claim costs baby boomers will have, it's already in the workers' comp system. So there is no more stress on the system."

Looking at the leading types of injuries for those in the 20 to 34 year age group compared to those between the ages of 45 and 64 shows some marked differences.

For example, the top claim diagnosis for lost time claims in the older age group is sprain/rotator cuff, something that doesn't appear at all in the top 10 list of diagnoses for the younger workers. Knees are another source of injury for older workers, with torn medial cartilage/meniscus of knee the fourth top diagnosis for older workers, but not showing up in the list for younger workers, who suffered more back injuries and ankle sprains.

Harry Shuford's slides from his presentation are available online at: "More Older Workers: Workers Compensation and an Aging Workforce."

Source: Risk & Insurance "NCCI: Baby boomers pose little additional concern for comp system" (May 31, 2011)

United Kingdom: London Employers Unprepared for Abolition of Mandatory Retirement

A survey conducted by the London Chamber of Commerce and Industry (LCCI) and Penningtons Solicitors LLP shows that 57% of London employers are not prepared for and 26% do not know about the 2011 abolition of the default retirement age (DRA). According to "Tackling the age-old problem of retirement, The Penningtons/LCCI survey of London employers on the changes to the default retirement age (DRA)," less than half--43%--of the employers consider themselves to be either quite well or very well prepared.

Other findings of the survey show that 78% think that workers should be retained on their ability rather than their age, 68% agree that the UK's employment legal framework needs to be modernized, 56% are concerned that older employees may refuse to retire even when they cannot perform their job effectively, and 54% are concerned about the lack of clarity about how to legitimately retire employees.

The report also includes a six-point plan to help employers minimize the risks of being on the wrong end of employment-related legal claims. Included in the plan are five best practice points together with advice on how to achieve a fair dismissal on capability grounds: (1) promoting more positive procedural terminology, (2) educating managers to respond to older workers' needs, (3) turning the annual appraisal system into a 365 day rolling program, (4) encouraging mentoring roles for older workers, and (5) building a workplace culture of transparency and clear communication.

Source: Penningtons Solicitors LLP News Release (May 26, 2011)

New Zealand: Research on Employer Preparedness; Calls for Public Employment Changes

New Zealand's Victoria University's announcement of a PhD dissertation showing that many organizations are under prepared for the loss of valuable knowledge as the oldest members of the baby boomer generation near retirement has led to calls for government employers to introduce more flexible working conditions so older workers can be retained in the state sector workforce.

First, the research: Dr. Carmel Joe's research suggests that few organizations have systems for identifying older experts or retaining their expertise after they retire. As part of her work, Dr. Joe created a model that organizations can use to identify the knowledge held by older experts and integrate it in to their knowledge retention processes. According to Dr. Joe:

Some aspects of a job can be documented but not everything. When I asked people what they would do if an expert in their team disappeared tomorrow, most replied that they'd have all the materials that person had generated but not the added element of the tacit knowledge they hold in their head.

Experts become very attuned and intuitive about what to do and what not to do but it's knowledge that is hard to define or write down. They also have a lot of referential knowledge—they know where to go to find things out.

One response to the research has come from Public Service Association national secretary Brenda Pilott who wants measures introduced that would allow older members of the workforce to work part-time. According to a news story written by Tim Donoghue, Plilott said:

The idea of more flexible arrangements to retain older workers and their expertise is something the public service wrestles with ... there needs to be more flexibility in terms of number of hours worked by older workers.

Sources: Victoria University News Release (May 18, 2011); Stuff.co.nz "Older workers 'need more flexible hours' " (May 21, 2011)

North Carolina: Annual Workforce Report Looks at Recession Impact and Takes Note of Aging Workforce

North Carolina has issued a report on its workforce showing that the recession accelerated the state's shift from a traditional, manufacturing-based economy to a knowledge-based economy. Among other things, the report notes that while the recession slowed baby-boomer retirements, the impact is likely to be felt first and greatest in small cities and rural areas where more workers are near-retirement age.

According to "The State of the N.C. Workforce 2011-2020," while North Carolina’s age distribution is similar to that of the United States as a whole, the state’s micropolitan and rural areas have a higher proportion of older adults than their metropolitan peers, with the prime working age (ages 20 to 54) cohort in rural counties comprises almost a 5.5% smaller share of the total population than in metropolitan counties. In addition, across the state, retirees (over age 65) comprise 12.8% of the total population, but in rural counties that share jumps to 16.8%, and the proportion of pre-retirees (55-64) is also higher in rural areas.

In looking at particular industries, the report notes that one of the biggest challenges the state’s energy firms face is a rapidly aging workforce. "For instance, Duke Energy indicates that more than half of its 17,000 employees in the greater Charlotte area are eligible to retire in the next decade."

Among the reports recommendations is that North Carolina encourage "employers and communities to adapt to the potential impact of large-scale retirements by helping older workers remain in the workforce, continue learning, and mentor other workers while also helping companies develop appropriate success plans, especially for key
occupations."

Sources: North Carolina Commission on Workforce Development "2011 State of the N.C. Workforce Report"; Charlotte Business Journal "N.C. workers need to adapt to work-force challenges" (May 25, 2011)

Study: Boomers Show Fear of Retirement Planning

According to a white paper issued by Financial Engines, retirees and near-retirees feel uncertain about the future, fearful of poverty, and are not confident in their investing abilities. Specifically, "Understanding the Accidental Investor: Baby Boomers on Retirement" reports on interviews with over 300 baby boomers and finds that more than half expressed some form of uncertainty in what the future may bring, nearly half had a fear of poverty in retirement and were distrustful of the motivations or qualifications of financial services and insurance firms, and more than a third said that they did not feel confident or knowledgeable when it came to making important financial decisions.

The most frequently observed behaviors seen among the participants were:

• Paralysis. Regardless of the primary emotion, the most common resulting behavior was ubiquitous across participants: to do nothing. While some were paralyzed with fear and uncertainty, others were prevented from taking action by confusion or not knowing whom to trust.
• Avoidance. When faced with fear of unpleasant or difficult news, some participants said that they preferred not to know how bad the situation was rather than face the facts. Others said that they wanted to avoid spending their 401(k) assets altogether to give them something to fall back on if something unexpected came up.
• Misplaced Trust. Given their distrust of the financial services and insurance industries and lack of confidence in their own financial knowledge, participants often turned to a friend or family member—qualified or not—for retirement advice.
Understanding the Accidental Investor | 4
• Magical Thinking. Many participants resorted to magical thinking, telling themselves that everything would work out in the end, or that they could continue working indefinitely without having to adjust their standard of living.

Sources: Financial Engines Press Release (May 23, 2011); The Baltimore Sun "Fear, distrust prevent older boomers from making retirement decisions" (May 23, 2011)

AARP: Survey Show Depth of Recession's Effect on Older Workers

An AARP survey shows that older Americans, whether working or not, are emerging from the recent recession worried about their financial future and taking actions to rebuild some measure of retirement security. According to "Recovering from the Great Recession: Long Struggle Ahead for Older Americans", published by the AARP Public Policy Institute, 24.7% of those 50 and over surveyed reported exhausting all savings during the recession, and 36.4% who had difficulty making ends meet stopped or cut back on saving for retirement. To recover some financial stability, 44.1% said they would likely work part-time in retirement, and 33.4% said that they planned to delay retirement.

“This unprecedented economic recession has left a legacy of low confidence, lower savings and the lowest employment rates in decades,” concluded [John Rother, AARP’s Executive Vice President for Policy, Strategy and International Affairs]. “While we are hopeful about improving economic conditions, this survey reminds us that older Americans will feel the effects of the recession for years to come.”

Source: AARP News Release (May 24, 2011)

Check out discussion on Huffington Post blog report on the AARP survey.

Conference Board Issues Report on U.S. Workers Increasingly Delaying Retirement

According to the Conference Board, the recession has put even greater pressure on U.S. workers to stay on the job, a trend that had started in the mid-1990s. The Conference Board report--"U.S. Workers Delaying Retirement What Businesses Can Learn from the Trends of Who, Where, and Why"--notes that these trends can vary according to industry:

[W]e see that delayed retirement has been more prevalent for some occupations and industries. For example, the healthcare industry experienced the largest decline in retirement rates in recent years. Jobs in this field are also in great demand. On the other hand, there was almost no retirement delay among government workers, who are more likely to receive defined benefit pension plans.

Gad Levanon, Associate Director of Macroeconomic Research at The Conference Board, and author of the report, says that "[d]elayed retirement allows households to consume more today and reduce the probability of a prolonged slowdown in the U.S. economy, and enables households to reach retirement with more financial resources."

Among other things brought out by the report that can help businesses develop a better workforce strategy, is that delayed retirement provides relief for several more years in industries that will suffer significant "brain drain" from baby boomers leaving. However, for companies looking to reduce headcount, slash labor costs, hire new workers or promote younger workers, delayed retirement could be viewed as a negative development.

Source: Conference Board Press Release (May 19, 2011)

Book: "RIPE: Rich, Rewarding Work After 50"

Julia Moulden, a Toronto-based author, career coach, speaker and Huffington Post columnist, has published RIPE: Rich, Rewarding Work After 50,a guide to help people transition into what she describes as "the next, best phase of your career."

In her book, Moulden identifies six major reasons people decide to “ripen,” from those who are looking for a new challenge in their fifties, to empty-nesters, to people who’ve retired and are miserable. As stated in the Financial Post,

In any case, most boomers can’t afford full retirement, Moulden says, though she says they shouldn’t be lumped in one category when it comes to their financial resources. She cited an RBC survey that found four in ten boomers are still carrying a large amount of debt — often in the form of mortgages on their homes. “A lot of people are continuing on for financial reasons,” she said in an interview, “It depends on who you are and your life circumstances.”

Moulden maps out a 12-week process people can use to find their way into this new phase of their careers.

Sources: Financial Post "Older workers have much to offer, experts say" (May 19, 2011); Financial Post "Boomers ripe for non-traditional retirement" (April 14, 2011); Harvard Business Review Blog "The Value of People Over 50" (January 18, 2011)

Study: American Workers Unprepared for Retirement

According to a study issued by the Transamerica Center for Retirement Studies, a significant number of Americans plan to never retire, yet are unprepared if the choice is made for them. Specifically, 40% expect to work longer and retire at an older age since the recession began: 39% plan to retire after age 70 or not at all, and 54% plan to work in retirement. As for preparedeness, 70% agree they could work until age 65 and still not have enough money saved to meet their retirement needs.

“With all of life’s uncertainties, planning not to retire is simply not a viable retirement strategy,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies. “Planning to work past age 65 is an important opportunity to continue earning income, save more, and help to alleviate a retirement savings shortfall; however, it’s important that workers be proactive in setting a retirement savings goal, saving and investing for retirement, and having a backup plan if they are forced to retire sooner than expected.”

Among other findings:

• Of those who plan on working after retirement or age 65, the most commonly cited reasons are out of necessity (44%).
• 82% do not have, or is unsure if they have, a backup plan in place in the event they cannot work as long as they need to, and that rate is even higher among those who plan to work past age 70 or never retire (87%).

Source: Transamerica Center for Retirement Studies Press Release (May 17, 2011)

South Korea: 50+ Now Account for One-Third of Workforce

News reports state that, according to Statistics Korea, the number of workers in South Korea over 50 grew to more than 8 million for the first time in April, amounting to approximately one-third of the workforce. This amounts to an 11% increase from the previous year and about two-fold increase from 20 years ago.

Ten years ago, people in their 30's accounted for 28.6% of the workforce, followed by those in their 40's (25.8%), 20's (20.7%), 50's (13.7%), and those over 60 (9.6%). The current figures have those in their 40's following the 50 plus at 27.3%, followed by those in their 30's (23.9%), 50's (20.9%), and 20's (15%).

Sources: Arirang "Korea's Workforce is Getting Older" (May 12, 2011); Chosunilbo "One-Third of Workers Are Over 50" (May 13, 2011)

Australia: Government Establishes Panel on Economic Potential of Older Australians

The Australian Treasurer Wayne Swan has announced the establishment of an Advisory Panel on the Economic Potential of Senior Australians to ensure the potential of the older members of our community is considered in a range of policy debates.

To be chaired by Everald Compton, who also chairs the existing Consultative Forum on Mature Age Employment that advises the government on what drives mature-age employment, the new panel will, among other things, examine how businesses and policy makers can assist senior Australians in their transition from the workforce into other valuable endeavors, such as supporting their families, mentoring, volunteering and community work.

In a speech announcing the panel, Swan said that "[e]nhancing mature participation is simply one of the most important issues facing our economy today." While it is important to continue recognizing the skills of older workers, encouraging further skill development, promoting healthy workplaces that support mature age workers, promoting age management in the workplace, allowing workers to make a phased transition to retirement, and ensuring that retirement income policies provide the right incentives, the new panel is "to look beyond the usual story of an ageing population and help us look to new ways to embrace the opportunities that much larger, and more active, communities of older Australians "

Sources: Australian Office of Deputy Prime Minister and Treasurer Press Release (March 30, 2011); Sydney Morning Herald "New panel to advise govt on seniors" (March 29, 2011)

Germany: Government Targeting Older Workers, Others, To Fill Jobs Gap

According to press reports, the German government (eight ministries and the Chancellery) has drawn up a 27-page paper that (a) acknowledged that around 6.5 million fewer people will be available to work by 2025 due to an ageing population and low birth rates, and (b) rather than looking across the German borders for fresh blood, focuses the government's attention on women who gave up paid work to bring up their children, and older people.

With respect to older workers, The Local reports that the following from the government paper:

Older people and those without work are also being considered. The raising of statutory retirement age from 65 to 67 will increase the numbers of workers by a million by 2025, while the intention is also to encourage more people older than 55 to work. Currently only 56 percent of people over 55 work – should that increase to 70 percent as is the case in Sweden, it would add a further million people to the workforce.

Sources: TheLocal "Mothers and over-55s called back to work" (May 11, 2011); Süddeutsche Zeitung "Mütter, Alte und Arbeitslose: Ran an die Arbeit!" (May 11, 2011)

New Zealand: Aging Workforce Report Highlights Importance of Older Worker

New Zealand's Ministry of Social Development has released a report finding that, over the next 40 years, more older people will participate in the paid workforce, the economic value of older people’s paid, unpaid and voluntary work will increase, older people’s contribution to tax revenue will increase, and older people will spend more.

While covering many economic issues, with respect to employment, "The Business of Ageing: Realising the economic potential of older people in New Zealand: 2011–2051" finds that 7-10% of the total labor force will be 65 and over by 2051, up from 3-4% currently. Among the likely effects of population aging on the labor market are that:

• a sizeable proportion of the workforce will be older, creating opportunities for workplace adaptation and job mobility
• New Zealand have an opportunity to redefine outdated concepts of sudden retirement
• employers will want continued access to the increasingly hard-to-replace skills of older workers who, in turn, have more interest in continuing to work than previous generations
• succession planning will be vital to ensure valuable knowledge and skills aren’t lost as baby boomers leave the workforce
• the growth of the total workforce will slow, making New Zealand’s economic growth more dependent on productivity improvements

New Zealand can prepare for the demographic shift and associated rising government expenditure by improving work opportunities for older people. Specifically, the report suggests that there are three key areas where participation of an older workforce could be enhanced: (1) commitment to renewing human capital, for example, upskilling, (2) new technological adaptations for work environments, for example, ergonomic design for improved health and labour savings, and (3) optimal work practices and arrangements such as flexible work arrangements and mentoring of younger workers.

Sources: Ministry of Social Development Research Report ; New Zealand Herald "NZ needs working boomers" (May 29, 2011)

Minnesota: A Look at Unemployment Among the 55 Plus

Writing for Minnesota Public Radio's Minnesota Economy blog, Paul Tosto has published charts from the Minnesota Department of Employment and Economic Development (DEED) showing that Minnesotans 55 and older have seen unemployment among their peers double since 2007. In addition to the raw numbers doubling, Tosto notes that unemployment rates that were averaging just 1.8% in 2005 for those 55 to 64 rose to 6.1% in 2010.

Separately, Tosto has published a table from DEED showing the industries with the most 55+ workers, with mining leading the way with 27.4% of the workforce 55 and older, followed by educational services with 26.2%. Of workers 65 and over, "other services" led with 5.9% of its workforce of that age, followed by the transportation and warehousing industry and the real estate industry at 5.7% each.

Sources: MinnEcon "55+ unemployment doubled since Great Recession" (May 2, 2011); "Where do age 55+ Minnesotans work?" (May 3, 2011)

Netherlands: Cabinet Endorses Proposal To Raise Retirement Age

According to news sources, the proposal of Netherlands' social affairs minister Henk Kamp to raise the official retirement age for the state pension from 65 to 66 in 2020 has been endorsed by the Dutch cabinet, so the proposal can now be submitted to parliament.

The impetus for the move is Holland's aging population and increased longevity. Current government population projections indicate that the present ratio of four workers for each pensioner in the Netherlands is expected to decline to two workers for each pensioner by 2040.

Sources: Investment & Pensions Europe "Dutch Cabinet supports raising state pension age to 66" (May 3, 2011); TAEN "Dutch Government Moves to Raise State Pension Age" (May 5, 2011)

Australia: Report Finds Age Discrimination Still a Concern and Calls for More Protection

Even though 2004 Austrlian age discrimination laws were meant to help older workers, a report issued by National Seniors Australia finds that the law leads often to nimble side-stepping--compliance with the letter rather than the spirit of the law. In addition to showing how age discrimination is more often covert and notoriously difficult to prove, "The Elephant in the Room: Age Discrimination in Employment" calls on policy makers to:

1. examine the issue of "disguised discrimination' and strengthen the relevant anti-discrimination legislation to reduce the likelihood of covert discrimination;
2. ensure individuals can make their own work or retirement choices in the light of their own health, aspirations, financial status and family situations; and
3. promote greater awareness by employees of their rights to complain about age discrimination.

In releasing the report, National Seniors chief executive, Michael O’Neill said:

With the age discrimination laws in place, employers are now much more sophisticated in how they exclude older workers. For example they may use recruitment agencies to screen applicants, employ code terms such as “overqualified” or frame advertisements denoting youth.

Sources: National Seniors Australia Press Release (April 30, 2011); 774 ABC Melbourne Chat with Age Discrimination Commissioner Elizabeth Broderick (May 4, 2011)

CDC Publishes Study on Older Workers Injuries and Illnesses at Work

The Centers for Disease Control and Prevention's National Institute for Occupational Safety and Health (NIOSH) has published "Nonfatal Occupational Injuries and Illnesses Among Older Workers---United States, 2009" in which it reports that, although older workers had similar or lower rates for all injuries and illnesses combined compared with younger workers, the length of absence from work increased steadily with age and was highest for older workers.

CDC undertook the examination as older workers (defined as those aged ≥55 years) represented 19% of the U.S. workforce in 2009 and are the United States's fastest growing segment of the working population. Overall, there were medians of 11 and 12 days of absence from work for workers aged 55-64 years and 65 years and older, respectively.

Older workers had higher rates of falls on the same level, fractures, and hip injuries compared with younger workers and workers of all ages. Public health and research agencies should conduct research to better understand the overall burden of occupational injuries and illnesses on older workers, aging-associated risks, and effective prevention strategies. Employers and others should take steps to address specific risks for older workers such as falls (e.g., by ensuring floor surfaces are clean, dry, well-lit, and free from tripping hazards).

Source: Centers for Disease Control and Prevention Morbidity and Mortality Weekly Report (April 29, 2011)

Ford Designs Ergonomic Workstation To Ease Work for Older Workers

An aging population in Europe and increases in retirement ages in some countries led Ford to put together a team of occupational physicians, production specialists, labor groups and representatives for disabled employees to improve the ergonomics, safety and productivity on the assembly line. A result of this effort has been the creation of an advanced ergonomic work station--the "Happy Seat"--that reduces chronic injuries and lower health costs.

According to Martin Chapman, operations plant manager in Cologne factory, where Ford produces the Fiesta:

Employees just push themselves back and forth and the chair swings in and out of the cabin--very simply and not requiring much physical effort. And the back feels fine, allowing employees to remain in employment longer to the benefit of Ford--ideally until they reach the age of retirement, the age of which many European governments have raised only recently.

Other measures employed by Ford to ensure production line workers’ health include movable platforms to raise vehicle chassis to different heights at various workstations, preventing excessive stretching and bending by employees; virtual software programs to design the most ergonomic production processes possible; and Santos, a computerised avatar that performs actions in the virtual world to help Ford improve quality, safety and ergonomics for its assembly line employees.

Source: Press Release Ford Motor Co. (April 26, 2011)

Colorado: Demographics Catching Up on State Working Population

Elizabeth Garner, Colorado's state demographer, is quoting saying that Colorado has been living in a dream that is soon going to end, and that the state is about to lose the "demographic dividend" it has had for several years--a relatively young population that has provided a healthy, productive workforce. According to an article by Emery Cowan in the Durango Herald, spoke at a conference of the Economic Development Council of Colorado.

"Now we’re going to shift out of that," she said, and the state needs to adapt. "We need to be strategic, we need to be making some really good choices because we don’t have that dividend anymore. We’re done with that comparative advantage we’ve had for 30 years."

Among other things, by 2030, the state’s population of people age 65 and older will be 150% larger than 2010, and about 1 million workers will be aging out of the labor force.

To see Colorado's labor force participation by age and gender and other parameters, go to State Demography .Office

Source: Durango Herald "Aging population in Colorado to change the face of workforce" (April 21, 2011)

Norway: Centre for Senior Policy to Hold Book Launch Covering 2010's Conference on Older Workers in a Sustainable Society

Norway's Centre for Senior Policy (Senter for seniorpolitikk) is holing a book launch on May 5 for Older Workers in a Sustainable Society, edited by Richard Ennals and Robert H Salomon. The launch will include comments by the Centre's director director Kari Østerud about the challenges and opportunities for older workers in Norway and by Liv Tørres political adviser in the Ministry of Labour, who will speak about Norway's position before the European Year of Active Ageing in 2012.

Ennals and Salomon's book follows on from the conference sponsored by the Centre in 2010. The three-day conference ("Older Workers in a Sustainable Society: Great Needs and Great Potentials") heard from speakers from several countries about the potentials of older workers, both individually and as an important part of societies' work force.

The conference was designed to put a different perception on the agenda; older workers as experienced and mature, a valuable source of talent, skills and knowledge, and ready, willing and able to work. It explored the social and economic potential in an ageing society and addressed the question of research contribution to employment of older workers. Among other topics, the conference had sessions and workshops on older workers work performance, productivity and quality; reducing age discrimination in working life; the work environment and older workers; and lifelong learning and competence at work. Presentations and abstracts from the conference are available on the web.

Source: Senter for seniorpolitikk Calendar of Events (May 5, 2011)

Survey Finds Older Workers More Likey To Be Bullied at Work

According to a survey conducted by CareerBuilder which showed that 27%t of workers reported they have felt bullied in the workplace with the majority neither confronting nor reporting the bully, workers age 55 or older, and workers age 24 or younger were among the gender and age-based segments more likely than others to report feeling bullied.

Specifically, 29% of workers age 55 or older and 29% of workers age 24 or younger reported they had been bullied on the job. In contrast, workers age 35 to 44 were the least likely to report feeling bullied at 25%.

Although bullies can be intimidating, nearly half of workers (47 percent) said they confronted the bully about his/her actions. Of these workers, 43 percent said the bullying stopped, 13 percent reported the bullying became worse while 44 percent said the bullying stayed the same.

Source: CareerBuilder.com Press Release (April 20, 2011)

United Kingdom Poll Finds Ageist Attitudes among Younger Workers

A poll conducted by Anchor Trust reports 41% of Britons aged 18-24 years saying there aren’t enough jobs for older people to be in work and 14% claiming older people should retire to make way for younger blood. Even though the United Kingdom's default retirement age of 65 has ended, Anchor reports that as far as young people are concerned, one hits the old age mark at age 62. In response, Anchor Trust is launching a "Grey Pride" petition drive calling on the British Government to follow the lead of Ireland and Canada and have a dedicated older people’s minister to champion the over-60's.

Anchor's poll also found that 21% of those polled believe the over 60s are slower and are less productive than their junior counterparts, and 5% claim they should be paid less because they work at a slower pace. In addition, 18% of young Britons call over-60s grumpy and 21% say they they are out of touch with modern society.

Jane Ashcroft, Chief Executive of Anchor, said: “Casual ageism has no place in society and these results bear no reality to the lives of the over 60s in England today who are active, energetic and contribute hugely to many of the most successful businesses and organisations in the country. The dismissive attitudes highlighted by Anchor’s research towards the over 60s are a sad indictment of attitudes in England."

Source: Anchor Trust News Release (April 19, 2011)

Hays Study Calls for Global Government Response to Looming Unemployment

Hays plc, a global recruiting firm, in partnership with economic forecaster Oxford Economics, has called on governments and industries across the world to take joint action to tackle the looming threat of increased global unemployment as the world's working population is set to increase dramatically--by 1 billion in next 20 years. However, that growth will be uneven, as all of this growth will be developing economies; the developed world will see its workforce shrink and age.

Accordingly, in "Creating Jobs in a Global Economy 2011-2030" (or click here for PDF), Hays proposes a five-point plan to avert future labor crises as significantly more people are set to join the global labor force.

1. Keep national borders open for the movement of skilled labour.
2. Agree an international code to facilitate employee migration.
3. Invest in training and education.
4. Create employment opportunities in the developing world.
5. Retain older people in the workplace.

With respect to the fifth point that should be the basis of further discussion by world and business leaders, Hays says:

Over the next 20 years developed economies will become increasingly reliant on the contribution from workers aged 60 or more. Many countries such as Britain have already passed anti-discrimination legislation to enable older people to stay at work and remain productive, but there is more to be done both in terms of maintaining the skills of an aging workforce as well as providing opportunities for these workers.

In this regard, the report notes that data "suggest older workers exhibit a number of different labour market characteristics from younger ones:

• They have a greater tendency to be self-employed and a lower tendency to be employees.
• The distribution of older workers across industries differs from the rest of the workforce.
• They have a greater tendency to be part-time or work on temporary contracts than other workers.
• Older workers tend to remain with an employer for longer periods of time than other workers.
• Involuntary separations are lower for older workers than younger ones.
• If older workers become unemployed, they tend to remain jobless for longer durations than other workers.

Accordingly, Hays recommends "examining each of these phenomena in detail as they contain different lessons for employers seeking to get the most out of their available staff."

Source: Hays plc Press Release (April 12, 2011)

Research Study Finds Older Workers Health Benefits from Wellness Coaching

Researchers at the University of Illinois at Chicago (UIC) have found that older workers benefit most from a modest health behavior program when it combines a web-based risk assessment with personal coaching. The Cost-Effective Health Promotion for Older Workers study was led by Susan Hughes, professor of community health sciences, co-director of the UIC Center for Research on Health and Aging at the Institute for Health Research and Policy.

According to Hughes, the health behaviors that were examined were physical activity, diet, stress reduction and smoking cessation, and 95% of workers aged 40-68 participating in the study used a Web-based risk assessment when theere was personal coaching support, but only 59% did so when there was no personal support. Hughes and her co-researchers have published the results of the study in the May 2011 issue of American Journal of Public Health: "Comparison of Two Health-Promotion Programs for Older Workers."

An interview with Hughes is also available online.

Source: University of Illinois at Chicago News Release (April 14, 2011)

Canada: Apparel Industry Confronts Aging Workforce

The Canadian Apparel Human Resources Council (AHRC) has released the findings and recommendations concerning the aging of both management and staffing in the apparel industry.

Among the issues discussed in "Pressing ahead: Canada’s transforming apparel industry," the apparel industry has to deal with a lack of succession plans for small businesses with aging owners and a looming shortage of production workers many of whom are nearing retirement age--7,000 of these workers could retire soon and that there are virtually no sources of supply for new production workers.

Sources: Apparel Human Resources Council Press Release (March 31, 2011); Montreal Gazette "Apparel companies face labour hurdles" (March 31, 2011)

United Kingdom: Government Paper Calls for Examining Future State Pension Age Increases

During the same week that the United Kingdom's law removing the default retirement age that had allowed companies to force workers to leave at 65 went into effect, the Department for Work and Pensions released a consultation setting out on how to simplify the state pensions system for future pensioners, including looking at processes for future increases in the retirement age. The consultation--A state pension for the 21st century--notes that longevity increases already have figured in raising the pension age to 66 by April 2020, but that increases in longevity do not end in 2020 and it is only fair that those generations who will benefit from these increases share in the costs.

Specifically, the government is asking (1) What mechanism should be used to determine future increases in State Pension age? and (2) How should the Government respond to the frequent revisions in life expectancy projections while giving individuals sufficient time to prepare? The paper suggests some possibile mechanisms, such as increasing the age through a formula linked to life expectancy, or alternatively increasing the by puting in place a review at regular, pre-determined intervals.

As noted in an article in The Telegraph before the paper's release:

However Mr Duncan Smith said the Government was preparing to increase the retirement age further because people are living longer and "don't feel like retiring at 65".

Mr Duncan Smith told the Murnaghan programme on Sky News: "The last Government already set projections to 67, 68 ... and we are revising those to look again.

“There is no question, no point in hiding the fact that retirement will have to move over a period, obviously to help people adjust, for two reasons.

"First of all, because we are living longer, most people don't feel like retiring at 65. We have many, many thousands now choosing to work beyond 65 and that's why we lifted that thing called the default retirement age, where you could be forced into retirement."

Sources: Department for Work and Pensions Press Release (April 4, 2011); The Telegraph "Most of us want to work beyond 65, says Iain Duncan Smith" (April 3, 2011); Age UK "Default retirement age scrapped from today" (April 6, 2011)

United Kingdom: Ageism of Greatest Concern to Older Population

Demos and Brunel University have released a study looking at aging policy from older people’s point of view, finding, among other things, that the very negative narratives about an aging society that conceptualise aging and older people as a problem are contributing to many older people feeling demoralised and disengaged from politics and the policy-making process. In fact, according to one of the authors of the study, agism to be a greater concern than crime among older people: "Whereas ageism was discussed vigorously in every one of our research groups, crime did not receive a single mention."

"Coming of Age", authored by Louise Bazalgette, John Holden, Philip Tew, Nick Hubble, and Jago Morriso, finds that age discrimination was felt to impact on every area of older people’s lives; in employment, in public services, in public places and even in family life. With respect to work and retirement, in particular, the study finds that the United Kingdom's "one size fits all" approach to retirement policy may itself be discriminatory and counter-productive, since it is those with the worst health and the lowest life expectancies who will suffer most from increases in the state pension age.

Accordingly, the authors suggest that, to "mitigate these problems it will be essential that the government both takes action to improve general health and reduce health inequalities, and investigates how employment can be made more flexible to reflect the heterogeneity of older people’s skills, personal responsibilities (eg caring roles) and health prospects."

Source: DEMOS "Putting a stop to age discrimination" (April 8, 2011)

Australia: Chambers of Commerce Endorse Government Promotion of Mature Age Employment and Apprenticeships

The Tasmanian (TCCI) and Australian (ACCI) Chambers of Commerce and Industry have congratulated the Australian government for its promotion of mature age employment participation. As noted by ACCI Chief Executive, Peter Anderson: "Australian employers need to develop innovative strategies to attract and retain valued employees to meet the vital skills needs of their business now and into the future."

The government endorsement follows the issuance of an ACCI research project--"It's Not About Age"--which focuses on building positive employment and training outcomes for employers and mature age apprentices to ensure that the Australian business community has access to a highly skilled and motivated workforce.

Separately, TCCI Chief economist Mark Bowles said hiring mature-aged workers was both a solution to Tasmania's skills shortage and inevitable because of our ageing population. According to Bowles, figures from the ACCI estimated 85% of workforce growth in the next decade would be for workers over 45, and he thought that figure could even be higher for Tasmania

Sources: Tasmanian Chamber of Commerce and Industry Media Release (March 30, 2011); Australian Chamber of Commerce and Industry Media Release (March 30, 2011); The Mercury "Older worker championed" (April 19, 2011)

See also links to Australian resources.

Canada: Oil Industry Facing Skills Shortage

According to a report issued by the Petroleum Human Resources Council of Canada, an aging workforce is a chief contributor to the fact that Canada's oil and gas industry is headed towards severe and chronic labour shortages. Specifically, the Council's labour market report--"The Decade Ahead: Labour Market Projections and Analysis for Canada's Oil and Gas Industry to 2020"--finds that over 30% of the industry's core workforce is expected to retire within the next decade, driving the need to hire at least 39,000 workers.

Cheryl Knight, Executive Director and CEO of the Council says that "We are going into a perfect storm....Just when the industry needs workers the most, Canada's labour supply will be dwindling as the overall population ages. Our industry will need to be prepared to face a labour shortage more severe than in 2007." In fact, some oil and gas companies are already coping with chronic shortages for certain occupations, and shortages are expected in all core occupations as early as 2013.

Source: Petroleum Human Resources Council of CanadaNews Release (March 29, 2011)

Nevada: Unemployment Statistics Highlight Growth of Older Workers' Participation Rate

Even with a rise of unemployment in Nevada, which has seen the participation rate decline for Nevada’s labor force as a whole fromm 2000 to 2010, it has grown for the state’s oldest workers. Specifically, in reporting the February 2011 unemployment statistics, the state's Department of Employment. Training, and Rehabilitation reported that, during those ten years, the labor force
participation rate in Nevada declined from 70% to 65.6%, while the participation rate for workers 65 and older increased from 12.8% to 20.6%.

The growth in the participation rate of older workers is likely caused by two factors: (1) a social change, marking the ability of older workers to work later into life, and (2) recessionary wealth destruction is forcing older workers to delay retirement due to financial reasons.

Sources: Nevada Department of Employment, Training & Rehabilitation Press Release (March 25, 2011); Northern Nevada Business Weekly "Number of over-65 workers in Nevada continues to increase" (April 4, 2011)