Rethinking Retirement: A Productive Future Beyond 65

1. Controversy 10 Is Retirement Obsolete?

2. Is Retirement Obsolete? • The 20th century could be called the “age of retirement” • After World War II, there was a consistent decline in labor force participation with advancing age in all industrialized countries • For society, the decline in labor force participation represents a loss of productivity by older people, for several reasons: • People are now living longer • People are better educated • People are in better health than ever before

3. History of Retirement • Widespread retirement by workers only became possible after the industrial revolution of the 19th century • Prussian Chancellor Otto von Bismarck first introduced the age of 65 as the basis for pension • According to statistics: • The overwhelming majority of both men and women are retired from the labor force after the age of 65 • Older men tend to move away from work and toward retirement

4. History of Retirement (cont.) • Retirement is not usually a negative event • Leisure can be viewed as either a negative time away from work, or a positive experience of free time • However, retirement as a time of leisure is only possible with a certain degree of wealth • With longer lives, people have spent more time in education, work, and retirement

5. Changes in the American Economy • A new postindustrial economy shaped by information technology and global competition has reshaped American society • Large companies can no longer guarantee employment or a predictable work life based on patterns in the past • For organizations, corporate downsizing often means a loss of older employees’ experience and skills • The volatility of the labor market today is more difficult for older workers to cope with than for younger workers • Today 86% of eligible workers participate in some type of retirement contribution plan

6. A New View of Retirement • On the negative side, the practice of retirement comes with large hidden costs • Funding required for pensions and retirement systems, and loss of accumulated skills and talents • On the positive side, the availability of retirement has meant expanded leisure and opportunities for self-fulfillment in later life • More time for personal development and volunteer service to others • Age Discrimination Act (1967) – forbids older workers from being limited or treated in any way that would harm their employment possibilities

7. Productive Aging • People over age 65 are productive in many ways • Three-quarters of older people are engaged in unpaid work such as housework or volunteer roles • The total value of their contribution to society equals nearly 12 million full-time workers, and equals 7 million workers in caregiving alone • More older people are volunteering today than a generation ago • Plasticity – the potential for retraining • The discovery method of training – trainees discover for themselves how to carry out a task to be learned • Very effective with older workers