Transcript Document

Changing Expectations for
Work and Retirement:
Jan Hively
(Janet M. Hively, PhD)
November 2009
Interest in the geopolitics of aging
Europe and Japan: hyper-aging
• Increased longevity, decreased fertility, limited
immigration
• “We start working later and later. We stop
working earlier and earlier. We live longer and
longer. We have fewer and fewer children. Such
an economic model is impossible.” Patrick
Devadjian, French Head of Economic Recovery
Aha!
XIXth IAGG
World Congress of Gerontology and
Geriatrics
Attend as an MGS representative!
5-9 July, 2009
Palais des Congres
Paris
Scope of the conference
• Themes
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• 6,300 participants
Biological Sciences
• 300+ workshops
Health Sciences &
• All in English
Geriatric Medicine
(French
revolt)
Behavioral and
Psychological Sciences • Academic!!
Social Research, Policy • Huge, but no
& Practice
“big picture”
Making Connections:
• Robert Butler and Francoise Forette,
International Longevity Centers (5)
• Age Friendly Communities – WHO plus
• Asia Pacific League – “straw into gold”
• Geneva Association – Silver Workers Inst
• Alliance Montesquieu (Age aux Travail)
Changing Expectations
for Work and Retirement
for the Alliance Montesquieu
(translated into French by Moira Allan)
Janet M Hively PhD
July 2009
Current Age for Retirement
• European Union 2008: age 60.9
(From 60: full public pension & health care)
• U.S. 2008: age 62.3
(From 62, Social Security minimum, full 67)
Pressures for Working Longer:
Government Perspective
• Projected shortfall in pension fund
(Social Security Fund, 2045)
• Projected shortfall in skilled workers
(by 2015)
• Reduced tax payments
• Added potential for more service needs
when retirement assets run out
Pressures for Working Longer:
Older Worker Perspective
• Eligibility for full Social Security moved to
age 67
• No Medicare coverage (public health care)
until age 65; after 65, need for health care
insurance supplement
• Loss of company pensions – Employers
contributing to retirement accounts from
82% early ’90s to 28% now, to predicted
low of 15%
Pressures for Working Longer:
Older Worker Perspective
• Lack of savings for retirement
– 40% of younger Boomers with no savings
– 32% loss in retirement savings with stock
market collapse
– Loss of net worth with decline in home values
• Having children in later life
• “70% of Americans nearing retirement have too
much debt and not enough savings to live
comfortably for 20-odd years”
Impacts of Recession on Older Workers
• Males age 45+ hardest hit by layoffs
• Short term surge in early retirements from
employers offering pensions (government,
employers with labor unions (6% of total)
• Desperate need of those without pensions to
find employment income – full-time to 62,
maybe part-time after 62
Older Job Seekers Face Ageism
in both the U.S. and Europe
• In the U.S., it takes twice as long for an
older job seeker to find employment
– “Over-qualified”; wage expectations too high
– Deficient in technology skills w/ less training
– Unfamiliar with pace and process of the current
job market
• Pushed into retirement by inflexible working
patterns and benefit patterns
The Challenge is to extend work life:
• For the economy:
– To address upcoming talent shortage
– To avoid pension fund failures
• For older adults:
– To earn needed income
– To find flexible work that matches
interests and skills
– To feel productive
What is the best public policy approach
to encourage people to work longer?
A or B?
A. Raising the age for pensions:
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May unfairly punish the unemployable
Adds to the punishment of employer cuts in
benefits
B. Removing obstacles and providing modest
incentives for later life productivity
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Will match the needs & interests of Boomers
Boomers say they want to work past
traditional retirement age
• From 62% in 2005 to 75% in 2008
• Why?
– Some will work because they want to:
• Stimulation, social interaction, physical
activity, team effort, “identity”
• Fulfillment and challenge more than income
– Others will work because they have to:
• Need income to supplement pension/savings
One-half say they want to “give back”
• Interest in work for schools, community
organizations, environmental efforts, and
troubled spots within and outside of the US
• Shift from “me” to “we,” away from
consumerism, accepting dualism of
local/global, understanding that everything
affects everything else
There is a hunger for meaning
• In the workplace:
– “I just do the same thing over and over”
– “There’s no room for creativity”
– “The job no longer matches my interests”
• In retirement:
– “I stay busy but I miss getting something
accomplished through team effort”
– “Work was my life, and now I have no life.”
“Meaningful Work”
• “Meaningful work” (Each person is different!)
– Requires focused effort – a sense of purpose
– Produces results
– Attracts positive reinforcement
– Matches up with passions and skills
– Stimulates learning
• Not related to the size of income or the scope of
the job, but to satisfaction
Meaningful Work is
Paid or Unpaid
• Work is productivity that benefits you or
your family, employer, community, etc.
• The scope of meaningful work includes
volunteering, parenting, learning and
caregiving as well as employment
• Older adults involved in meaningful work
are healthier and more satisfied with life
than others
Examples of Public Policies to
Encourage Working Longer
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Regulatory reforms:
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Extend “delayed retirement credit” (Now to
8% a year for postponing claims, to age 70)
Remove penalty for continued employment of
those claiming benefits between 62 and 67
Incentives:
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Lifelong learning Accounts
Encore Fellowships
Need for Pressure on Employers
• 2006 Survey of Employers, who were told:
– One-half of their employees will lack the
resources needed to retire at traditional age
– One-fourth of employees will want to stay on
the job at least two years past traditional age
But the employers said:
– “Not likely to create opportunities” for even
half of these employees to work longer
• Now.. Employer expectations even more bleak
SHiFT: <www.shiftonline.org>
• Started 2006 for people in transition seeking
meaningful work – ages midlife (40) and
beyond – in coffeehouse meeting rooms
• Networking: Forums, lifework planning
groups, workshops, Time Bank, website
• Midternship: Trying out skills in a new
vocational area -- for a modest wage, for a
defined period, with coaching
What are SHiFTers looking for?
• Flexibility – choice and control – when to
retire, work roles, work hours, work status
• Project-focused
• Teams empowered and stretched to high
expectations for results
• Giving back and making a difference
• Recognition and respect
Discussion with Alliance members
• It’s a lot easier for the U.S. to encourage
working longer. In France, the unions are
strong and everyone’s happy with the way
things are (5 week vacations, 35 hour work
week, long holiday weekends, retirement at
60 with full pension and health care). In the
U.S., you’ve got hard workers who need
income & who value “giving back.”
Follow-up to IAGG
• Workshop on “Changing Expectations for Work &
Retirement in U.S. and Europe” for Positive Aging
Conference Dec 6-9 Florida
www.eckerd.edu/positiveaging
(see MGS website)
• WeAretheOnes.eu – international network of civic
leaders sharing program info via website re:
lifework planning, productive aging, age friendly
communities, lifelong learning, and wellness
Come to free a.m. conference on
Thursday, December 3, downtown Mpls
Boomers Mean Business:
Retaining a Productive Workforce
Wells Fargo, Transform 2010 and SHiFT
See the MGS Website
Jan Hively
HIVEL001@ umn.edu