OECD Pension Outlook: Work Longer Before Retiring and Smaller Public Pensions.

The OECD says that governments will need to raise retirement ages gradually to address increasing life expectancy in order to ensure that their national pension systems are both affordable and adequate. Even so, the OECD report "Pensions Outlook 2012" finds that reforms over the past decade have cut future public pension payouts, typically by 20 to 25%.

According to the OECD, over the next 50 years, life expectancy at birth is expected to increase by more than 7 years in developed economies. The long-term retirement age in half of OECD countries will be 65, and in 14 countries it will be between 67 and 69. The report states that increases in retirement ages are underway or planned in 28 out of the 34 OECD countries, but these increases will only keep pace with improved life expectancy in six countries for men and in 10 countries for women. Thus, OECD calls on governments to consider formally linking retirement ages to life expectancy, as in Denmark and Italy, and make greater efforts to promote private pensions.

Private pensions are not a panacea either, as OECD notes that in countries where public pensions are relatively low and private pensions voluntary, such as Germany, Ireland, Korea, Japan and the United States, large segments of the population can expect major falls in income upon retirement.

The report also includes the first comprehensive evaluation of national defined contribution systems. These are:

now a central feature of many countries’ pension systems. Among other recommendations, the report argues that it is critical to set the minimum or default contribution rate in Defined Contribution systems at an appropriate level.

Contributions to these systems need to be high enough so that together with public pensions they generate sufficient income at retirement. While Australia is moving in the right direction by increasing its contribution rate from 9% to 12%, it remains too low in countries such as Mexico and New Zealand (6.5% and 3%, respectively).

Source: OECD News Release (June 11, 2012). See also, OECD, Media Brief.

Australia: Economic Reform Report Calls for Raising Participation Rates of Older Workers

The Grattan Institute, in issuing reform recommendations for providing Australia economic benefits over the next decade, noted that no other reform opportunity compared to tax reform and raising participation rates for women and older Australians. With respect to the latter, the report — "Game-changers: Economic reform priorities for Australia" — said that "Increasing the workforce participation rate of older people would mean that Australia’s GDP would be about $25 billion higher by 2022."

Finding that "[o]lder people generally stop working for discretionary reasons, such as opting to retire once they reach ‘retirement age’, rather than because of difficulty finding work, or barriers such as disability," the Grattan Institute calls for increasing the ages at which people become eligible for the aged pension and eligible to access their superannuation. Specifically, the report recommends raising both the pension age (the age at which people can qualify for the age pension — currently 65 for men and 64 for women, to rise to 65 for both sexes by 2014) and the preservation age (the age at which a worker can access their superannuation — currently 55) to 70.

According to the report, "[m]easures to encourage businesses to employ older workers, such as the Commonwealth Government’s recently announced Jobs Bonus and related initiatives, are likely to have a relatively limited effect on older age participation." In fact, it suggests that "it is not clear that governments can do much to alter employer perceptions. It may be that increasing the pension and preservation ages would do more than anything else to change both employer and employee expectations."

Those retiring today have benefited from an ‘unexpected’ increase in longevity, and it is reasonable that in enjoying this benefit, they share some of the costs that it imposes. The only generation that is ‘unfairly’ treated by increases in the pension age is the cohort that has already retired. Younger people will have to work to any increased retirement age as well.

Source: Grattan Institute Media Release (June 7, 2012)

Australian Human Rights Commission Calls for Ending Barriers to Working Past the 60's

The Australian Human Rights Commission has issued a paper detailing how age bars in workers compensation, income insurance, and licencing block willing and able people from continuing in work through their 60s and beyond. In "Working Past Our 60s: Reforming Laws and Policies for the Older Worker," calls for the elimination of all these age bars. Susan Ryan, the Age Commissioner, states: "My hope, in publishing this paper, is to spread awareness of these forms of age discrimination and thus encourage decision makers to devise and implement positive reforms."

According to the paper, the "structural barriers not only create financial and security difficulties for people who work into their 60s and beyond, they also send a message to older workers that they should not be in the workforce." Specifically, the Commission argues that:

• "[e]xtending workers compensation, income protection and superannuation provisions to all people who remain productive in the workforce will go some way towards ensuring that older Australians enjoy the same rights as the rest of the working population." and
  
• "[e]nsuring that the licensing and regulatory requirements do not discriminate on the basis of age will also provide opportunities for people to work for as long as they are fit and productive."

Source: Australian Human Rights Commission News Release (June 6, 2012)

Eurofound Seminars Focus on Working Conditions for Older Workers

Eurofound held its 8th edition of the Foundation Seminar Series (FSS) in Rome in late May. Among the issues on the agenda were working conditions of older workers; national, regional and sectoral initiatives for active ageing; and best practice in companies.

Following are links to the presentations:

Programme:

• Final programme [.pdf, 206kb]

Presentations:

DAY 1 - Monday 28 May 2012

• Maurizio Curtarelli & Oscar Vargas - Working conditions of older workers in Europe: Highlights [.pdf, 1.7mb]
• Marco Centra & Pietro Checcucci - Demographic trends, older workers and active ageing in Italy [.pdf, 500kb]
• Roberto Angotti - Learning, supporting active ageing. Evidence from Eurostat and Isfol - INDACO surveys [.pdf, 534kb]
• Country profile: Italy [.pdf, 536kb]
• Mario Zambelli - Company case Politecnico Calzaturiero 'Flexibly beyond' [.pdf, 805kb]
• Mario Zambelli - Company profile Politecnico Calzaturiero [.pdf, 1.1mb]

DAY 2 - Tuesday 29 May 2012

• Country profiles: Austria [.pdf, 300kb], Belgium [.pdf, 100kb],Slovenia [.pdf, 832kb], Portugal [.pdf, 833kb], Estonia [.pdf, 636kb],Finland [.pdf, 210kb], Ireland [.pdf, 170kb], Romania [.pdf, 508kb],Hungary [.pdf, 424kb], Latvia [.pdf, 1.4mb], Luxembourg [.pdf, 362kb], Serbia [.pdf, 655kb]
• Gabriella Bettiol - Industrial change, retirement reform, innovative business: impact on active ageing management [.pdf, 1.2mb]
• Riccardo Viaggi - The under construction 3 project: A European sectorial social dialogue approach to active ageing [.pdf, 422kb]
• Wilma Butterworth & Pamela Houghton - Positive about older workers [.pdf, 730kb]
• Carmel Schuler - Productive ageing [.pdf, 723kb]
• Bridie Horan - 'Options for me programme': promoting equal opportunities for older workers at Tallaght hospital [.pdf, 484kb]
• Dieter Doetsch - Training 50+ with ING-DiBa [.pdf, 880kb]
• Serena Zottino - Skills development in high-level older employees [.pdf, 378kb]

DAY 3 - Wednesday 30 May 2012

• Anne-Marie Guillemard - Developing solidarity and cooperation amongst the various age groups in the workplace for an active and productive ageing workforce [.pdf, 723kb]

Source: Eurofound (June 5, 2012)

Connecticut: Report Suggests Aging Workforce Harming Economic Recovery

According to a report from the Connecticut Center of Economic Analysis at the University of Connecticut, the state is recovering from the recession, "but without the robustness needed to restore reasonably full employment and household income." Furthermore, "Connecticut faces a dismal future, with its 65 and over population doubling, its working age population shrinking while its quality deteriorates, and its under‐18 cohort contracts." However, according to "Recovery Stirring? But will Connecticut be too Old to Compete? The Connecticut Economic Outlook: May 2012," the state has "one asset that could vault it to the top of the growth charts and, critically, rescue it from its current bleak demographic trajectory."

According to the report's authors, the challenge for Connecticut is to replace all 120,000 jobs lost since 2008 and to create substantially more--at least 50,000 net net--to retain and attract new workers, to change its demographic future. To do this, they recommend that the state "unleash existing stranded tax credits in a highly targeted program to drive economic growth.  If the $2.5 billion in tax credits currently sitting unused and unusable on balance sheets could be redeemed ex post against the cost of major capital projects."

Given current labor force patterns and participation rates, with an aggressive expansion policy, Connecticut could effectively compete both to retain its own educated youth and to pull in thousands of new workers, significantly exceeding its previous employment level.  In the longer term, together with the initiatives in place, aggressive use of the stranded tax credits would launch Connecticut on a long‐term dynamic path that would continue expanding employment opportunities for two or more decades.

Source: The CT Mirror "Report: Aging workforce threatens state's economic recovery" (May 23, 2012)

Switzerland: Companies Begin To Look to Older Workers To Fill Skills Gap

A survey conducted by Monster.ch reports that 75% of Swiss companies say they see recruitement of people over age 50 as a solution to the shortage of qualified workers. However, only 37% of them are actually regularly hiring people over age 50, and 34% say they do not want to keep people on as salaried employees once they reach age 65.

"2012 Switzerland Recruiting Trends" („Recruiting Trends 2012 Schweiz“) documents the important trends and challenges of recruitment in Switzerland and contains estimates of the economic development of the labor market, and finds that the shortage of skilled labor remains a central problem of recruitment in Switzerland. Nine out of ten employers say that the age of their employees does not really matter, and that what is important is the true performance of employees. In addition, 86.3% want to keep their employees as long as possible in the company.

Sources: Monster.ch Press Release (May 23, 2012); Genevalunch.com "Message to older workers: we love you, we want you but not just yet" (May 23, 2012)

West Virginia: Demographer Reports Decline in Working Age Population

According to data released by the U.S. Census Bureau and evaluated by the West Virginia University Bureau of Business and Economic Research (BBER), the number of working-age people is on the decline in West Virginia. In addition, the overall number of the working-age population ages 18-64 decreased by 0.03% between July 1, 2010, and July 1, 2011.

BBER demongrapher Dr. Christiadi stated that "The year of 2011 may be the start of the new trend where the number of state’s working-age population gradually shrinks over time." The prime working-age population (people ages 25-44) saw the largest drop of 0.6%, and this trend took place in 48 of 55 counties (87.3%), with 13 counties (23.6%) declining more than 2%.

"When it comes to people getting or changing jobs, the state still sees more people moving out rather than moving in. In addition, West Virginia has more and more out-of-state college students, which partly explains why we see more college graduates moving out of the state," Christiadi said.

Source: West Virginia University Press Release (May 18, 2012)

Thailand: Aging of Workforce in Industrial Sector

According to an article in the English language "The Nation," Thaiand's industrial sector's labour force is aging, adversely affecting productivity. Research conducted by Srawooth Paitoonpong at the Thailand Development Research Institute (TDRI) has found changes in the workforce's age, gender and educational make-up between 1991 and 2010. While the industrial-sector labour force has been younger than those in the agricultural and service sectors, Srawooth reports that the number of young workers had plunged from 55% to nearly 21% during that period, while the number of older workers rose to 20% from 12%.

The causes are the Kingdom's lower birth rate and the trend for young people to spend more years in educational institutions.

"The average age of a labourer was 32 in 2010, up from 27 in 2004," said Srawooth.

"The rising proportion of ageing workers has had a negative impact on labour productivity, so training is needed to improve older workers' productivity," he suggested.

Source: The Nation "Ageing workforce hits industrial-sector productivity, says TDRI report" (May 21, 2012)

GAO Issues Report on Status of Unemployed Older Workers in the United States

The U.S. General Accountability Office (GAO) has released a report focusing on the status of unemployed older workers coming out of the recession. As a report to the Senate Special Committee on the Aging, the GAO's "Unemployed Older Workers: Many Experience Challenges Regaining Employment and Face Reduced Retirement Security" examines:

1. how older workers’ employment status has changed since the recession,
2. what risks unemployed older workers face and what challenges they experience in finding reemployment,
3. how long-term unemployment could affect older workers’ retirement income, and
4. what other policies might help them return to work and what steps the Department of Labor (Labor) has taken to help unemployed older workers.

The GAO concluded that "Although long-term unemployment hurts job seekers of all ages, it poses some greater challenges for older workers." Among other things, "older workers tend to stay unemployed longer, and those who regain employment generally sustain greater wage losses than do younger workers."

Without providing specifics, GAO recommended that, to foster the employment of older workers, the Secretary of Labor should consider what strategies are needed to address the unique needs of older job seekers, in light of recent economic and technological changes.

Labor agreed with our recommendation and noted a couple of its initiatives focused on the employment of older workers. Specifically, Labor cited its current evaluation of the Aging Worker Initiative demonstration project, which will assess the success of new interventions used by 10 local grantees to help connect aging workers with employment opportunities. In addition, Labor cited its sponsorship of the annual National Employ Older Workers Week that provides outreach opportunities for SCSEP grantees.

For an audio interview by GAO staff with Charles Jeszeck, Director, Education, Workforce & Income Security, go to GAO website.

Source: U.S. General Accountability Office Highlights (May 15, 2012)

United Kingdom: Survey Shows Retirees Would Prefer Gradual Retirement

A survey of people planning to retire this year in the United Kingdom shows that 40% of them would be happy to work past 65 if they had the chance. According to the Prudential Class of 2012 study, 48% of men and 32% of women would be happy to continue working past the standard retirement age.

Prudential reports that the main motivation for 68% of the retirees who want to stay in the workforce past 65 is a desire to remain physically healthy and mentally active, while 39% do not like the idea of retiring and just staying at home. Despite wanting to stay in work, only 13% would choose to continue to work full-time with their current employer. Rather 49% of them would prefer to work part-time, either with their current employer or in a new role, in order to strike a better work life balance.

Vince Smith-Hughes, retirement expert at Prudential, said:

Gradual retirement is an increasing trend among pensioners, whether this means remaining in the same job on a flexible basis or even setting up their own business! Those retiring at 65 will face an average of nineteen years in retirement which makes the financial and social benefits of working for longer an even bigger draw for a new generation of industrious retirees.”

Source: Prudential Assurance Co. Press Release (May 2, 2012)

United Kingdom: Cambridge Academics Approve Age 67 Mandatory Retirement

Cambridge University has introduced a compulsory retirement age of 67 for its academics to promote "intergenerational fairness" and enable career progression, according to press reports. Cambridge conducted the vote in response to the United Kingdom's abolition of the default retirement age, but it applies only to academic employees.

In voting for an "employer justified retirement age" (EJRA), the academics have decided that, upon reaching 67, they must either take their pension or reapply to stay at the University. Claire Churchard, writing in People Management, quotes Indi Seehra, HR director at the university as saying:

Introducing the EJRA for academics will support intergenerational fairness. It will allow our academics to progress through the promotional stages in the course of their career and help to create a balanced distribution of ages.

...

In an environment where innovation is needed, you need new people to come in to the cohort to create innovation. But you need the capacity to allow them in, and if you haven’t got people leaving then that will be a restriction on the capacity for new people.

Sources: People Management "Cambridge academics approve compulsory retirement age" (May 3, 2012); The Cambridge Student "Analysis: Should Cambridge dons be made to retire at 67?" (April 26, 2012)

New Hampshire: Aging Demographics a Cause for Concern

The Carsey Institute of the University of New Hampshire has issued a demographic report that while New Hampshire does not have a large population of seniors, a rapid increase in the older population is inevitable and coming soon. Among other things, in "New Hampshire Demographic Trends in the Twenty-First Century," the author, Kenneth M. Johnson, the Institute's senior demographer, argues that while New Hampshire’s large population of working-aged adults has provided much of the human capital the state needs to fuel continued economic growth, the lack of significant growth in these age groups is a cause for some concern.

New Hampshire’s age structure dictates that the number of older adults will increase rapidly in the next two decades. There are currently 97,000 65- to 74-year-olds in New Hampshire. In contrast, there are 179,000 55- to 64-year-olds and 226,000 45- to 54-year-olds.

New Hampshire's economy had been fueled by in-migration, but "the loss of migrants has an immediate financial impact on the state and implications for its human, intellectual, and social capital." During the recession, in fact, out-migration has resulted in New Hampshire experiencing a 10.6% net loss of the 20- to 29-year-olds coveted by employers. Thus, Johnson argues, "[a\ggressive programs exemplified by the 'Stay, Work, Play Initiative' should be considered to retain young adults, encourage those who left to return, and attract more young adults to the state."

Source: The Carsey Institute Publication Abstract (May 1, 2012)

Norway: State Employee Unions Seeking More Time Off for Senior Workers

According to press reports, labor unions representing state workers are demanding 12 extra days off every year, plus even more for senior workers over age 62, in order to make it easier for the employees to take care of aging parents, for example, and to discourage older workers from retiring. In particular, "[o]ne of the unions, Akademikerne, also wants workers over age 62 to receive 28 additional days off, in addition to the 30 days of paid holiday they get every year. That means senior employees would effectively get three months off every year."

As reported by Newspaper VG, Rikke Ringsrød, the union's chief negotiator in the state, since the government is trying to get more people to remain longer in work and senior political holidays (currently, all state employees over 62 years receive eight holidays a year, plus up to 6 days as may be agreed with the local employer) have proven to be useful, the union proposal is to provide flexible arrangements that each individual can choose between reduced fractional positions or other arrangements to choose to be in the job. He further suggests that these are employees who are of great benefit to employers, and that it is better that they are nine months on the job than they disappear from the workplace.

VG says that Government Ministers Rigmor Aasrud, responsible in government for wage, would not comment on the union proposals.

Source: Views and News from Norway "State workers want more time off" (May 2, 2012)

Australia: Commission Opens Broad Inquiry into Legal Barriers to Labor Force Participation by Older Workers

The Australian Law Reform Commission (ALRC) has released an Issues Paper for its Inquiry into legal barriers to mature age participation in the workforce and other productive work. According to the ALRC, "Grey Areas: Age Barriers to Work in Commonwealth Laws" is intended to form a basis for consultation--to encourage informed community participation by providing background information and highlighting the issues so far identified by the ALRC.

ALRC President Professor Rosalind Croucher said “There is often a complex interaction between things that are ‘barriers’ to workforce participation and things that are ‘incentives’ to leave the workforce. Leaving the paid workforce may also mean people are able to make a valuable contribution in other productive work—like the hugely important role of volunteers in our community.

The ALRC considers that six interlinking principles should guide reform in this area: participation; independence; self-agency; system stability; system coherence; and fairness. One key question we are asking in the Issues Paper is whether there are any other principles that should inform our deliberations. Other questions refer to changes that should be made to remove barriers in the various areas of law under review.”

In addition to this initial "framing" question, ALRC seeks responses to 54 other questions on age pension, income tax, superannuation, social security, family assistance, child support, employment, workers’ compensation and insurance, and migration. Among the employment questions that it raises are:

34. In what ways, if any, can the practices of private recruitment agencies be regulated to remove barriers to mature age employees entering or re-entering the workforce?

38. How does the operation of the modern award system affect mature age employees and in what ways, if any, can modern awards be utilised or amended to account for the needs of mature age employees?

41. Where is it best to include information about occupational health and safety issues relevant to mature age workers?

43. What measures involving regulation and monitoring, if any, should be introduced to ensure (a) employers are responsive to the needs of mature age employees; and (b) mature age employees are actively involved in developing and implementing such measures?

44. What are some examples of employment management best practice aimed at attracting or retaining mature age employees?

46. What other changes, if any, should be made to the employment law framework to remove barriers to mature age participation in the workforce or other productive work?

ALRC has provided an online form to make submissions on its inquiry.

Source: Australian Law Reform Commission Media Release (May 1, 2012)

United Kingdom: Study Outlines Financial Pressures Keeping Workers Employed after Pension Age

The Pensions Policy Institute has released a study finding that around a half of the United Kingdom's current over 50s will have to save more and work longer if they want an adequate income in retirement. Due to the dramatic increases in life expectancy, the vast majority of the over 50s who are working (around 85%) might have sufficient state and private pension income to meet a minimum acceptable standard of living in retirement if they continue to work and save until they are eligible to receive their state pension, but for many people an income in retirement at this level is unlikely to be considered adequate.

According to "Retirement income and assets: the implications for retirement income of Government policies to extend working lives," around 40% of today’s over 50s who are still working might have sufficient state and private pension income to have a retirement income that would allow them to replicate their full living standards in retirement, and a further 10% of the over 50s might have such sufficient pension income if they continue to work and save for between one and five years after their state pension age. However, 5% of today’s over 50s might have to work and save for between six and ten years after that age and a further 45% would have to work and save for 11 years or more to replicate their working life living standards in retirement.

The report also notes, however, that while the proportions of people working at older ages has increased, many people are compelled to leave work before state pension age due to circumstances beyond their control, such as health problems or the need to provide care for a family member. On the other hand, the report also notes that people in the highest wealth quintile are more than twice as likely to retire voluntarily before reaching their state pension age, than people in the middle wealth quintile, and that those with a Defined Benefit pension are almost twice as likely to retire voluntarily before their state pension age than those with no private pension income.

Sources: Pensions Policy Institute News Release (April 25, 2012); The Independent "Half of over-50s will be forced to work until age 77" (April 28, 2012)

Gallup Poll: Expected Retirement Age in United States Rises to 67

According to a Gallup poll, the average non-retired American now expects to retire at age 67, up from age 63 a decade ago and age 60 in the mid-1990s. Overall, 26% of non-retirees expect to retire before age 65, with 27% expecting to retire at age 65 and 39% after age 65. The percentage that expect to retire after age 65 is up from 21% in 2002 and 12% in 1995.

Gallup also reports it finds a steady, although less steep, increase in the average age at which retirees actually retired, from age 57 in 1991 to age 60 in 2012. The average retirement age first reached 60 in 2004 and has generally held there since. However, Gallup expects that the average should increase in future years if current non-retirees delay their retirement, as they report in the survey.

Gallup also surveyed how well off workers expect to be in retirement:

Younger nonretirees are also more optimistic than those closer to retirement age about their post-retirement financial situation. Slightly more nonretirees under age 40 believe they will have enough money to live comfortably in retirement (48%) than believe they will not (44%). By comparison, nonretirees aged 40 and older are more than twice as likely to think they will not have a comfortable retirement (64%) than to think they will (29%).

Source: Gallup Inc. News Release (April 27, 2012)

Germany: Chancellor Merkel Addresses Demographics of Aging, including Workforce

Chancellor Angela Merkel convened and addressed a demographic conference on how Germany needs to respond to its aging population. Among other things, she reenforce the need to to raise the retirement age to 67 "by saying that demographic changes in Germany called for it and added that having more experienced employees would increase companies' productivity," according to a press report.

According to Merkel, "Deshalb bin ich zutiefst davon überzeugt, dass wir Ältere im Erwerbsleben auch wegen ihrer großen Erfahrung wirklich brauchen." She also argues for more flexibility to work into old age and transition into retirement: "Mehr Flexibilität beim Arbeiten im Alter und beim Übergang in den Ruhestand – das ist eine ganz wichtige Sache, die viele auch wollen."

Working is just part of her demographic strategy, which addresses six main points: support for families, putting in place the right conditions for a longer working life, finding ways for older people to choose the way they work, cooperation among federal, state and municipal institutions, securing wealth and growth and limiting state debt. The Cabinet is set to approve this plan.

On the Chancellor's website, there is a copy of her speech to the conference, as well as video of her remarks.


Source: Deutsche Welle "Aging society keeps Germans working" (April 25, 2012)

Survey: Older Middle-Income Workers in U.S. Happy To Keep Working

Charles Schwab & Co. has released a survey finding that 76% of middle-income Americans who are between the ages of 50 and 69 say they are sticking with their jobs because they "want to" as opposed to being "stuck" in them because they can’t leave. In addition, 27% say this is the happiest time of their working career, and another 11% believe the best is yet to come.

In other results from the "2012 Older Workers & Money Survey," 59% of workers aged 50-69 say they like what they’re doing, and 49% like the people they work with. Also, 67% consider themselves ahead of the game when it comes to job skills and report being "intellectually stimulated," "still learning" and "working to [their] full potential" at their jobs.

There are some striking differences between people in their 50s vs. those in their 60s when it comes to overall contentment in the workplace. A significantly higher percentage of 60-somethings than 50-somethings say they don’t plan to stop working (34 percent vs. 25 percent, respectively). In fact, nearly twice as many workers in their 60s as 50s say they just don’t want to retire (32 percent vs. 19 percent). The study shows that people in their 60s are more likely to be working part-time and enjoying the flexibility of doing so, liking the people they work with, feeling they would be bored if they weren’t working, and not feeling ready to retire or simply not wanting to.

Conversely, more 50-somethings than 60-somethings feel “stuck” in their jobs, perceiving greater barriers to making a job change. They say they’re sticking with their current employer because they need the money (64 percent vs. 55 percent) or because they feel it would be tough to switch jobs in this economy (52 percent vs. 29 percent) or because they don’t want to start over and lose seniority (29 percent vs. 17 percent).

The survey polled 1,004 middle-income American workers between the ages of 50 and 69 from January 19 through January 30, 2012, to better understand their perspectives and outlook on working, financial well-being and retirement. Respondents had household incomes between $40,000 and $90,000. Results were also reported on workers and their families, and their financial health. The survey also noted that "Older workers tend to serve as mentors to their younger colleagues, with more than two-thirds of them (68 percent) providing advice on a range of topics, including how their younger colleagues can do their jobs better, how to handle professional issues and how to navigate around the organization."

Source: Charles Schwab & Co. Press Release (April 24, 2012)

Book Review: "Retirement on the Line"

Frank Koller, in reviewing Retirement on the Line: Age, Work, and Value in an American Factory by Caitrin Lynch, says that "Lynch convincingly argues that regardless of age, people 'just want to matter.' With a rapidly aging population, the U.S. has to find ways to better harness the tremendous experience, energy and wisdom of its older citizens."

Lynch's book is the product of five years of research exploring Vita Needle, a small private manufacturing company in suburban Boston, which began to concentrate 20 years ago on hiring workers nearing or over the traditional retirement age of 65 and which now has 49 employees, with an average age of 73 and a few of whom are over 90. Koller says that "Lynch's book, however, asks tough questions about the ethics of Vita's reliance on "eldersourcing" and its relevance to the broader economic challenges facing the nation."

In my writing about the competitive advantages of formal no-layoff policies, this issue comes up repeatedly: why bother with a management system so different from what everyone else uses?

Lynch's answers are similar to mine.

First, Vita's long-term financial success (which the firm argues is directly supported by its hiring of older employees) "suggests that a practice that can be good for business can also be good for workers." It's certainly not about "being nice" to old people.

Second, does any thinking person believe that conventional management systems -- the ones which so quickly shed so many millions of workers in recent years -- are currently working well for the country as a whole?

Source: Huffington Post "Paid Work -- Long Past 65 -- Can Benefit Everyone" (April 20, 2012)

Canada: Older Workers Less Likely To Participate in Job-Related Training

According to a study from Statistics Canada, older workers in 2008 were significantly less likely to participate in job-related training than their counterparts in the core working-age population. In "Job-related training of older
workers" by Jungwee Park, it is reported that, in the year from July 2007 to June 2008, 45% of workers aged 25 to 54 took at least one job-related course or program, compared with 32% of those aged 55 to 64.

Among the factors linked with significantly lower participation in training among older workers were lower annual income, low educational attainment, temporary employment and work in blue-collar or service jobs. Workers in the private sector, particularly those in goods-producing industries, were also less likely to take job-related training.

However, over the period since 1991 when statistics started being kept, the employer-sponsored training gap between older and core-age workers shrank appreciably. Between 1991 and 2008, the participation rate in employer-supported training among workers aged 55 to 64 more than doubled from 12% to 28%, while the training rate for workers in the core-age group, those from 25 to 54, increased from 29% to 38%.

Source: Statistics Canada The Daily (April 20, 2012)