OVERVIEW OF WORK

WHAT DO WE KNOW?

WORK ETHIC: Values and Expectations

BENEFITS AND PURPOSES

PATTERNS AND TYPE OF EMPLOYMENT

UNEMPLOYMENT AND JOB DISPLACEMENT: Barriers to Employment

SPECIAL POPULATION CONSIDERATIONS TRENDS

STRATEGIES FOR OLDER WORKERS

RESOURCES

LINKS

REFERENCES
Work for Older Persons 
  


"The race is over, but the work never is done 
while the power to work remains…
it cannot be, while you still live. 
For to live is to function; 
that is all there is in living."

These thoughts may reflect the perspective of the current older generation about work.

Most persons spend a significant proportion of their lives in the preparation for and the development and practice of a career or job. Through our job we derive or build upon our value system, personal relationships, self-esteem and many other integral facets, which extend beyond the workplace and into the other parts of our lives. How we perceive and experience our work influences how we age, how well we age. Through this site we hope that a greater understanding of what we know about older workers, the benefits and purposes of work, barriers to work, populations at risk and trends will lead us to use the strategies, resources, and links to help us age more successfully. 

How and where we work directly affects when and how we retire. There is much information for both; hence each will appear in a separate page on this web site. To go directly to Retirement, click HERE.

OVERVIEW

Work provides financial security. The economic status of older adults directly affects where we live, how we relate to our community, with whom we socialize, and even how we vote. Income and employment significantly influence the way older adults live their lives. The meaning and extent of financial security and work are different for each person. The meaning of work, acquired skills, satisfaction and pride associated with work all have the potential to provide feelings of "success" as we age and set the stage for retirement.

For many, work brings structure to our lives, economic resources, purpose, skills and social interaction. With our cultural value of the work ethic and the need for financial security, Americans want to work!

WHAT DO WE KNOW ABOUT OLDER WORKERS?

The Work Ethic

The work ethic provides a helpful framework for our understanding of work and retirement. The current cohort of older adults holds the "work ethic" in high esteem. One of the most profound experiences of the current generation of those over 65 was the Great Depression of 1932 which imposed extreme financial distress on even the wealthiest of individuals. Hence, this cohort places a high value on savings, investments, residence, job loyalty and occupational stability.

For most individuals work defines roles and provides self-esteem, pride, expertise, relationships and values. Work, productivity (and related values), wages, education, expectations and timing of employment influence individuals’ approaches to employment and retirement -- whether he or she has been or will be "successful." These values cross all facets of life and directly affect activity and behavior of older adults both inside and outside the work environment, and after retirement.

Benefits of Work

People work for different reasons and receive diverse benefits from their efforts, many of which contribute to how successful older adults feel about their aging. In 1992 a Harris Survey (Henretta, 1992) identified financial need to be the primary motivation for older adults to work. Boredom in retirement and a wish purposeful activity are other significant reasons for older persons to seek employment.

Additional benefits include:

  • Defined roles
  • Self-esteem and value
  • Financial compensation
  • Recognition and status
  • Expertise, skills, and knowledge
  • Relationships
  • Social activities
      • (Hooyman, 1996; Mor-Barak & Tynan, 1993; 
      Mor-Barak, Schartach, Birba & Sokolar, 1993)
Studies have found that persons who continue to work into old age report higher morale, happiness, adjustment and longevity -- all related to successful aging. For older adults, jobs may represent a new career, continued earlier work, learning new skills and forming friendships. However, a study funded by Kaiser Permanente found that older adults who retired exercised more regularly and were less likely to be involved in substance abuse than older adults who remained in the work force.
                      (Midanik, et al, 1995)

Why Workers Leave Employment

Henretta et. al., (1992) found the following reasons to leave a job (listed in declining order of importance):

  • Wanted to retire  (47%)
  • Health   (24%)
  • Lost job  (10%)
  • Compulsory Retirement  (9%)
  • Social Security (3%)
  • Caregiving for others   (2.5%)
  • Pension  (1.8%)
  • Didn't like job  (1.5%)
  • Spouse retired  (.4%)
Patterns and Types of Employment

During the life course individuals have expectations related to age about career patterns:

  • Beginning work
  • Peak of career
  • Timing of retirement
Whether these phases are "on time" is significant.  If the timing of these phases is "off," feelings of failure and "lack of success" can influence how older adults perceive themselves to be aging.
                               (Hooyman, 1996)

Demographic trends, social policies, and increased longevity affect work patterns. A man now expects to work 55% of his life and retire for 26% of his expected 75 years. By comparison, in 1900, he might have lived for 47 years, worked 32 years (70% of his life), and retired for one year (2% of his life). Women currently expect to spend more time in retirement and less time bearing and raising children. In 1900, a woman expected to spend 6 years (or 12%) of her life at work, compared to the current 40% of her 78 year life span.
               (Hooyman, 1996: U.S. Senate Special
               Committee on Aging, 1992)

Fewer older adults remain in the work force. Fewer than 3% of the total work force are older workers. Among persons over 65 years, only 16.4% of men and 8.7% of women are currently working – down from 1950, when 46 % of older men and 10% of older women worked.
                                                   (AARP, 1998)

Older adults are more likely to work in jobs that require:

  • Greater education
  • More extensive training
  • More retirement flexibility
They are less likely to be in jobs that are:
  • Physically demanding
  • Lower level (such as entry level)
  • Higher tech
        • (Hooyman, 1996; U.S. Senate Special Committee on Aging, 1992)
There is a myth that "persons leave full-time work to retire to full-time leisure." This is simply not the case! In fact, most older workers wish to work part-time, and do. The proportion of part-time workers increases with age. Older workers desire to more gradually retire from their job and to seek new part-time opportunities after retirement. Part-time work has increased to more than half of retired workers, particularly among women. 

Older workers report that they:

  • Expect to stop working earlier than they wished
  • Prefer to work for three to five more years
      • (Quinn & Burkhausen, 1993; Hooyman, 1993)
There are several reasons for the preference by older workers for part time work. This makes the following more likely:
  • Flexible work schedule
  • Partial pensions
  • Gradual retirement
      • (Burkhausen & Quinn,1992;
      Hooyman, 1996; AARP, 1991)
Unemployment and Barriers for Older Workers

Plant closures, down-sizing and restructuring has contributed to the rise in unemployment for older workers. Work-related experiences can greatly influence one’s perception of how he/she ages. Negative experiences such as disappointment are likely to contribute to feelings of "being unsuccessful."  While their unemployment rate (3%) is less than that of younger workers, older workers are more likely to:

  • Remain out of work longer
  • Lose earnings and benefits in new jobs
  • Cease their job search, disheartened
  • Lose acquired skills or have skills less needed in the current job market
      • (Hooyman, 1996)
Public Policy

Legislation and public attention has focused on the protection of older workers. In 1967 the Age Discrimination in Employment Act (ADEA) was passed. It allowed for:

  • Delayed retirement
  • Prolonged employment
  • Protected workers over 45 years from denied employment based solely on age.
An amendment to the ADEA in 1978 raised the mandatory retirement to 70 years and prevented employers from using pension plans to justify not hiring older workers. Further protection of older workers came from the Americans with Disabilities Act (ADA) in 1990. Under the ADA, employers must make job modifications to accommodate workers with sensory or manual deficits.

Age Discrimination

Despite advocacy and the law, discrimination based on age continues. Negative experiences certainly influence an older adult's perception of how he/she is aging. Many employers practice ageism. Employers may assume that older workers do not perform as well as younger workers based on their belief that there is a negative correlation between a worker's age and his/her productivity. It is widely thought that a worker's productivity peaks at 43 years, is maintained for approximately 15 years and then wanes with ensuing years. Employers believe the causes to be:

  • Diminished energy
  • Poor health
  • Declining intelligence
      • (Hooyman, 1996; AARP, 1999)
Employers feel that older workers are not cost effective because of the following:
 
  • Health insurance costs
  • Closeness to retirement
  • Perceived lack of training potential.
      • (Hooyman, 1996)
Ironically, most employers have a high regard for the following characteristics of older workers, and almost half of businesses surveyed have incorporated the aging of their workers into their long range business plans:
  • Dependability
  • Emotional stability
  • Ability to get along with others
  • Loyalty
      • (AARP, 1999)
Myths and Realities
 
 
The Myth is that older workers . . . The Reality is that older workers . . .
  • are viewed negatively by customers
  • are viewed positively by customers
  • are slow, unproductive workers
  • are as productive as their younger counterparts
  • won't be with the company long
  • remain on the job longer than younger workers
  • don't want to advance
  • want to learn and grow
  • are inflexible and resistant to change
  • are willing to change and adapt
  • don't need to work
  • may need the money
  • are absent from work because of illness
  • have fewer incidences of absence and tardiness
  • are difficult to work with
  • are adept in interpersonal relationships
  • are expensive to train
  • repay the training investment quickly
  • incur higher insurance costs
  • may cost no more to insure
  • are not interested in work
  • are motivated to work
  • are more accident-prone
  • have fewer on-the-job accidents
  • won't work because of Social Security benefits
  • may need additional income, or want to work
  • are not as adept intellectually
  • are intellectually adept
  • lack experience
  • have a wealth of life experiences
(Coming of Age, "The Older Worker as a Staffing Solution)

SPECIAL POPULATION CONSIDERATIONS

Minorities and Work

  • Persons of ethnic minorities such as African Americans and Hispanics, are at higher risk than Caucasians for lower paying jobs
  • African American and Hispanic women are reported to have significantly higher anxiety about poverty and retirement than their Caucasian counterparts.
  • Displacement from employment in later life is more likely to occur in African American and Hispanic populations
  • The net worth of Blacks near retirement is a fraction of their white counterparts' net worth
      • (AARP, 1998)
Issues of Women and Work
  • Interrupted careers/ work patterns
  • Gender bias
  • Social Security inequities
  • Lower wages than men
  • Retirement planning and benefits are less adequate and less consistent
Recent studies conducted by Brandeis University have focused on women and work and retirement. They have published a number of materials which can benefit both professionals serving older adults and older adults themselves as they work and prepare for retirement.

The Brandeis studies found that the many women 65 years and over have been dependent on their husbands’ income, and so have not accrued Social Security benefits equal to that of their husbands. Half of these dependent women and half of those who had worked outside the home were not knowledgeable about pensions, investment and retirement plans -- and some of their rights to Social Security benefits. Most were not trustful of financial planners and less likely to seek their advice. Most of these women received information on financial matters from the media, friends and family.

In a 1997 study of 500 women surveyed from the Coalition of Labor Union Women (CLWU), 70% had primary responsibility for the financial planning and management in their households. Most had savings outside their pensions plans. When they did invest money, they were more likely to avoid risk by sacrificing higher investments.

The National Policy and Resource Center on Women and Aging (NPRCWA) publishes many materials with very practical advice for older women. For example, they give 5 key tips when seeking financial advice:

  • Get recommendations and references, and check them out
  • Ask lots of questions
  • Check out the professional training, registrations and legal standings
  • Find out first how you pay for services
  • Clarify what specific services will be provided
Publications from the NPRCWA include:
    The newsletter, Women and Aging Letter

    Facts on Mid life and Older Women and Crime

    Women of Labor Speak Out on Retirement Finances, Health Care, and Caregiving

    Financial challenges for Mature Women: Creating Financial Plans and Evaluating Financial Planners

These may be ordered through: The American Association of Retired Persons has long advocated and published extensively on work , retirement and women. Some of their publications have been cited at the conclusion of this section. Additionally, these AARP publications have relevance to older female workers.
The Public Policy Institute, in an Issue Brief, focused on "Social Security Reform:   How Might Women Fare?"
The "Fact Sheets," particularly:
  • 12 Powerful Facts About Older Women
  • Facts About Older Women: Housing and Living Arrangements
  • Facts about Older Women: Saving for Retirement: How Are Women Doing?
Baby Boomers (those born between 1946 and 1964) likely Impact and Trends
  • Baby Boomers will change traditional employment by not retiring or only semi retiring 
  • It is estimated that 80% of Baby Boom women will risk poverty during retirement years 
  • Approximately one third of Baby Boomers are financially illiterate with little or no savings and in debt from credit card over-spending 
  • American businesses lose $11 Billion per year from lost productivity from employee caregiving responsibilities, predominately of the middle-aged sandwiched generation.* 
      • (The Met-Life Study of Employer Costs, 1998)
*  $4.9 Billion a year is lost to replace employees who resign due to work and family conflicts.

*  $4 Billion is lost annually due to worker absenteeism to deal with personal problem
                (AARP, 1999)

(For information on caregiving, please see also the Caregiving section within the Center on Aging Studies Without Walls.)

AARP has produced a report, Caregivers in the Work Place Program, that can be ordered by  writing:

      AARP Fulfillment
       601 E. Street, N.W.
       Washington, DC 20049

Cite order number: D14828.
A wealth of current information on work and older adults may be found in AARP's bimonthly publication, Working Age.  These newsletters may be obtained through the above address.A wealth of current information on work and older adults may be found in AARP's bimonthly publication, Working Age.  These newsletters may be obtained through the above address.

Trends

Increased longevity and changing work patterns are prompting trends among older workers. Almost half of businesses have incorporated the aging of workers into their long range business plans.

  • Smaller proportion of time in paid employment
  • Retirement for many at earlier ages ( before 65 years)
  • More part-time workers
  • Increasing unemployment among older workers due to down sizing and plant closures
  • Age based employment discrimination
  • Fewer new entrants into the work force may result in:
    • Fewer older workers displaced and retired
    • Less support for Social Security benefit to retired workers
  • Rise in numbers of women in the work force through 1997
        • (AARP, 1998)
Strategies to Benefit Older Workers

The pool of workers will decline as Baby Boomers retire. Older workers are likely to fill this gap to cover long term care and health, continue similar lifestyles and retain lifelong careers. Changes in corporations and government must be made to modify retirement incentives and extend work opportunities to older workers. Very few companies offer training programs or education for management in the effective use and value of older workers. Older persons must advocate for change. Some of these changes should include:

1. Programs dedicated to connect older adults and employers through job counseling, training and referrals.

2. Employers must develop programs and policies to assist older workers in the following areas:

  • Recognition of the values and skills of older workers
  • Health insurance and medical benefit programs
  • Training, especially in technology
  • Career development and job change preparation
  • Financial and retirement planning
  • Benefit packages for retirement
  • Wellness and health programs
  • Family caregiving
  • Modification of responsibilities and environment to ensure safety for older workers
  • Age discrimination
      • (Modified from a study of businesses by Colorado State University reported in Aging Today (1992) 13(4):13.)
3. Flexibility built into business:
  • Part-time work
  • Job sharing
  • Flex time
  • Gradual retirement from full-time to a part-time basis
4. Federal policy change:
  • Social Security modification
  • Change in pension restrictions against earnings
  • Tax credits or other tax incentives to employers who hire older workers
        • (E. E. Barber, 1992)
The current cohort of older workers is highly vested in the work ethic and derives self-esteem, expertise, relationships, role definition, status, and of course, financial compensation from their efforts. There have been common expectations of the timing of critical points in one's career, i.e., when work begins, peaks, and ends in retirement. Increased longevity and changing cohorts forecast new trends and timings of events. 

Older workers, now 10% of the work force, will become 20% in the next thirty years. They bring more education and training and prefer more flexible and gradual retirement through part time work. The Age Discrimination in Employment Act of 1967, and the Americans with Disabilities Act in 1990 provide some protection for older workers from discrimination and mandatory retirement. However, age and gender discrimination persist. The rising numbers of women entering and staying in the work force, earlier retirement, more part-time workers and fewer new entrants into the work force are new trends to watch. 

Strategies to benefit older workers center around flexibility and modification in the work place and retirement plans. Such change will come about only through advocacy and public policy legislation. This information and resources prompts a better understanding of the significance of work in a successful aging process.

RESOURCES

Many of the above statistics may be found through the 1995 report of the U.S. Bureau of the Census.

The American Association for Retired Persons (AARP) offers substantial advocacy and information to the older worker. For information write: AARP, Economic Security/Work Issues 601 E. Street, NW, Washington, DC 20049 or call: (202) 434-2100. Or, write to the Work Force Programs Department at the above address.

AARP booklets offer a wealth of information, are free, and may be ordered through a catalogue or the internet. The following AARP publications are dedicated to older worker issues:

Preparing for an Aging Work Force, A Practical Guide for Employers. 1998

Boomers Approaching Mid-life: How Secure a Future? (1998)

The Family and Medical Leave Act:  What It Means for Caregivers in the Workplace. Questions and Answers for Employees and Employers

Americans Changing Work Force: Statistics in Brief (1998)

Pensions The Source for Consumer Information

Your Pension Plan A Guide to Getting Through the Maze

Senior Community Service Employment Program

Age Discrimination on the Job

Returning to the Job Market: A Woman's Guide to Employment Planning

Working Options: How to Plan Your Job Search. Your Work Life

Society for Human Resource Management SHRM, 1800 Duke Street, Alexandria, VA 22314. Phone: (703)548-3440.

LINKS

    CapWeb - direct e-mail to members of Congress, and the home pages for the Senate and House
    THOMAS Legislative Information on the Internet - for the full text of legislation for the 104th and 105th Congresses, and records

    REFERENCES

    AARP, 1999. Working Age. (14(5) 1-2/99.

    AARP, 1998. Working Age. 14(4) 11-12/98.

    AARP, 1998. Competing in a Global Economy, Working Age. 14(2) 8-9/98.

    AARP, America's Changing Work Force: Statistics in Brief, 1998.

    Atchley, R., (1999). Social Forces and Aging: An Introduction to Social Gerontology. Belmont, CA: Wadsworth Publishing Company.

    Barber, E. E. (1992). Top 15 Issues. Aging Today 13(4)13.

    Ekerdt, D.J., S. Deviney, & K. Kosloski (1996). Profiling plans for retirement. Journal of Gerontology. 51(3):S140.

    Ebersole, P., and P. Hess, (1998). Toward Healthy Aging, St. Louis, MO: The C.V. Mosby Company.

    Fyock, C. (1990) America’s Work Force is Coming of Age Lexington, MA: Lexington Books D. C. Heath and Company.

    Henretta, J.C., C. G. Can, & A. M. O'Rand (1992). Retirement reason versus retirement process: Examining the reasons for retirement typology. Journal of Gerontology. 47(1):51.

    Hooyman, N.R., and HA. Kayak (1996). Economic Status, Work and Retirement," Social Gerontology: A Multidisciplinary Perspective (4th edition)Needham Heights, MA: Allen & Bacon

    Lazarus, M., and H. Lauer, (1985). Working past retirement: Practical and motivational issues. In Butler, R. N., and H.P. Gleason (Eds.) Productive Aging Enhancing Vitality in Later Life. Springer Publishing Company: NY pp. 47-75.

    Midanik, L.H., K. Soghikian, L.J. Ransom, & I.S. Tekawa (1995). The effect of retirement on mental health and health behaviors, The Kaiser Permanente Retirement Study, Journal of Gerontology. 50B(1):S59.

    Mor-Barack, M.E., A.E. Sharloch, L. Birba, and J. Sokolov. Employment, Social Networks and Health in the Retiremenet Years, International Journal of Aging and Human Development, 35)2)143-157.

    The Path to Poverty: analysis of women's retirement income. (1995).

    Retirement Comes of Age (1989). Generations. XIII (2) 1-72.
    Many of the above statistics may be found through the 1995 report of the U.S. Bureau of the Census.

AARP booklets offer a wealth of information, are free, and may be ordered through a catalogue or the internet. The following AARP publications are dedicated to older worker issues, and have provided considerable information for this site:
Preparing for an Aging Work Force, A Practical Guide for Employers. 1998

Senior Community Service Employment Program

Working Age. (An AARP newsletter about the changing work force)

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