Changing Expectations forWork 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– Biological Sciences

– Health Sciences & Geriatric Medicine

– Behavioral and Psychological Sciences

– Social Research, Policy & Practice

• 6,300 participants• 300+ workshops• All in English

(French revolt)• Academic!! • Huge, but no

“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 Expectationsfor 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:– 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

– 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

• Regulatory reforms:– 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:– 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