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The Benefits of an Ageing Population

Professor Colleen Cartwright explores demographic trends, shifts in policy, and benefits of hiring older workers in this informative article.

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The Benefits of an Ageing Population

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  1. The Benefits of an Ageing Population Professor Colleen Cartwright,Director ASLaRC Aged Services Unit Southern Cross University colleen.cartwright@scu.edu.au

  2. Demographic Trends: International(U.N. World Population Prospects: 2006 Revision)

  3. Major Events in Australian History– Timeline - • 1890 – Bismarck sets retirement age at 65 (5%>65) • 1909 – Australia introduces aged pension • 1940s – Unemployment & widow’s pension • 1975 – Henderson poverty report (many older people were below the poverty line) • 1977 - Age as grounds for discrimination (NSW) • 1996 – Workplace Relations Act – prohibiting termination of employment on basis of age • 2009 – Retirement age to increase to 67 by 2023

  4. Demographic TrendsAustralia • Proportion of population 60+ 2006 = 19% 2041 = 31% • Fastest growing age group 85+ • By 2056, 1.6m will be 85+ • In June 2010 • 3,700 Australians were aged 100 or more • 1 in 3 Australians 65+ was not born in Australia; more than half of those were from non-English-speaking backgrounds • Proportion of ATSI elders remains unacceptably low

  5. How Old is an Old Person?Problems of Stereotyping • Generally considered to be 15 years older than the person answering the question. • Most older people dislike being called old because society has placed connotations on the word “old” that equate with “past its use-by date”, “ready for the scrap-heap”, “worn-out”. They prefer to be called older people. • For research purposes, older people are now often grouped into: “young-old”:60-74; “mid-old”: 75-84; and “old-old”: 85 +

  6. Conceptualisations of Ageing –A Policy Shift • Healthy ageing – disease & dysfunction free; physical, social and mental well-being (WHO) • Successful ageing – health plus personal well-being, autonomy and psychological adjustment, life satisfaction • Positive ageing – positive societal attitudes and portrayal of ageing • Active ageing - social justice, citizen participation, security • Productive ageing – retirement & economic aspects – (beware economic rationalist approach)

  7. Older Workers • Steinberg et al (1998) UQ: “How old is an older worker?” Most common response = 45 • Older workers unfairly (& inaccurately) stereotyped – Tesco study – UK • Qld law firm recently employed 78-year-old woman • Access Economics reports show that companies (Westpac, McDonalds, Bosch) are retaining/retraining older workers very successfully, and targeting older people for new employees • Paid work, self-esteem, good health correlated, especially for males. Non-employment associated with elevated death rates (incl. suicide, especially among older men) • Many older people want to work but are discouraged

  8. Older Workers • (From UK study, reported on “ShortList” website, 20/9/2005): • Health and safety concerns not good excuse not to employ older workers: “Older workers can have a more responsible attitude to health and safety; show less absenteeism; show more advanced functioning in some cognitive capacities; and have more healthy lifestyles in some respects.” • Many declines in health or cognitive, physical or sensory functioning can be “minimised, prevented or overcome”. • Employers who adopt flexible retirement practices that can retain older workers longer will gain marketplace advantage • Many older workers can match physical strength and endurance, relevant to workplace, of younger co-workers – fewer jobs today are physically demanding

  9. Demographic Trends – New Work Entrants • Access Economics report: new entrants to workforce • currently approx. 170,000/yr • decade 2020-2030 – estimated 12,500/yr • by 2016, more than 80 percent of workforce growth will be people over 45. • Shortages already being felt, causing a shift in the attitudes of HR Managers and recruitment companies to more positive perspectives on older workers • Government policies also shifting – can now access some superannuation without retiring and can “switch super pension on and off”

  10. Media Release – 22/4/2012 • NSW Business Chamber Launches Handbook: “The Business Case for Recruiting and Retaining Mature Aged Workers” to Help Employers Hire Matured Aged Workers. • “Mature aged workers can bring a wealth of experience and diversity to a workplace if they are given the opportunity to contribute,” said Stephen Cartwright, CEO of the NSW Business Chamber. • “The message to NSW employers in our handbook is to make your next employment decision a conscious one to employ a mature aged worker.

  11. Benefits to employers and workplaces of hiring mature aged workers • Tapping into a source of skilled labour during a shortfall of skilled employees; • Established networks, external interests and experiences that add value to a business; • Loyalty and tendency to stay with an employer longer than younger employees; • Mentoring younger employees and passing on ‘corporate memory’ to other employees. • Recruiting mature aged workers can bring many benefits to our workplaces and the national economy.

  12. Aged Care Services • Major employer in Australia – wide range of career opportunities: management; furniture design; IT; landscaping; chef; natural therapies; nursing … • Workforce issues - recruitment and retention of staff in aged care – nurses in acute care are paid higher $$: recent Federal Government announcement of $15m to help redress this imbalance • Training & education of staff - large untrained workforce in aged care: requires government initiatives • need for new concepts in service delivery, including use of technology, to free staff from paperwork - “Think outside the square” • appropriate use of technology could also help to attract and retain staff

  13. Opportunities/Challenges • Ageing population/older workers bring opportunities and challenges • Opportunities • Flexible, mobile workforce (temp pool?), job sharing, mentoring of younger people, marketing opportunities • Older workers could provide staff for call-centres or other non-location-specific industries. • Challenges – older workers • Training: Needs to be targeted & take account of how older people learn, don’t use same techniques as for younger people; Match to task (Mission Australia) • Make work attractive – top-up pensions, superannuation • Change stereotypes, perceptions of employers, HR managers (this is happening)

  14. Facts on Ageing - 1 • Financial contributions of older people: • Older people more likely to provide financial and practical assistance to families than to receive it. • More than 25% of older people contribute to the community through volunteer work. Rates of volunteering of baby boomers are higher than for previous generations. • Economic value of volunteer work in Australia in 2006/7 was estimated at $14.6 billion; in 2009/10 the Australian Govt. spent $11 billion on aged care services (AIHW 2011).

  15. Facts on Ageing - 2 • In 2010, 2.9 million Australians 65+ were volunteered their time to a range of organisations. • Senior Australians contribute the highest number of volunteer hours of any group (they are not the largest group but they contribute the most hours) (Aust govt. 2011) • Does not include “informal” volunteering – child-care, help with home maintenance, caring for frail older people and people with disabilities.

  16. Facts on Ageing – 3Ageing does not mean inevitable physical/mental decline • The greatest decline in the human body occurs between 30-40 years of age • The majority of older people do not become “senile” (have Alzheimer’s or other dementias): <1% 60-64; <3% 70-74. Does not increase significantly until over 85 (16% males; 24% females). • Vast majority of older people live in their own homes. Around 7% of Australians 75+ live in nursing homes.

  17. Facts on Ageing - 4 • Older people remain physically active: e.g. Brisbane City Council GOLD programme (Growing Old Living Dangerously). • Older people remain sexually active: “all that is required is an interested and interesting partner”. • Older people are active, sociable and worthy of respect. Research shows that they are psychologically healthier than younger people. • Older people control increasingly large percentage of the nation’s buying power – many have partly or fully funded their own retirement income.

  18. Marketing Opportunities • Potential for older people to be employed in new industries aimed at older people – possibly in a “temp pool” to allow for other commitments (minding grandchildren, travel). Meet their need for “top up” of pensions or superannuation (especially with recent losses), plus meet needs of customers. • Increasing market of older people for computers & other electronic equipment – hardware and software, but especially training and support – even better if trainers are older people too. • Likely to be more golf clubs sold than surf boards – but trends suggest mature consumers will spend less on luxury items and more on grandchildren, leisure and recreation

  19. Marketing Opportunities – 2 • Large percentage of older population have high levels of disposable income, with less commitments than younger people. Majority own their own homes. • Need to tap into this market – do needs analysis – what services/products do they want that are not available in their local area? What is being purchased elsewhere? • fitness & health-related; • travel and recreation; • products to maintain independence; • food – healthy take away or home delivery (packaged for one or two); • Supermarkets/stores with wide aisles, seats, non-slip floors

  20. Marketing Opportunities – 3 • Need for appropriate housing, other support facilities – may require policy change, e.g. groups of older people may wish to pool “carer pension entitlements” and employ 1-2 carers for the group. • American company has been setting up franchises in Australia, catering to “elderly, lonely, wealthy people” – raises many issues – but also raises the Q, “Is this an opportunity at the local level?” • Set up accreditation system for older people who are/ have been carers – and who want to use the skills they have developed, perhaps being employed to care for others

  21. Benefits of an Ageing Population (from paper by Judith Healy, ANU, 2004) -1 • Grandparenting has become an important social role and appears to benefit grandchildren substantially. • Older people play an important role in supporting and maintaining informal social networks, thus binding communities and families within communities. • Older people are usually involved in their communities, as active members of sporting, hobby and social clubs, churches and educational forums

  22. Life-Long Learning • Never too old to learn new things • May 2012 – 97-year-old man graduated from SCU, Master of Clinical Sciences (“Will he use it?”) • My PhD students – 82 year-old man; 65 year-old woman • My story – and comments of farmer • U3A • Genealogy • Internet/email/Skype – stay connected to family and friends – benefits for all

  23. Benefits of an Ageing Population -2 (from paper by Judith Healy, ANU, 2004) • Older communities are more law abiding – older people are less inclined to commit crimes against property and people: Aust Institute of Criminology estimates that homicide rates will fall by around 16% by 2050, resulting in savings in prison costs & policing. • Arts likely to benefit – older people attend musical concerts, theatres and art galleries more than younger people, read more & visit libraries more often

  24. Older People add Social Capital • Older people can enrich a community, providing wisdom, experience and practical skills – but society needs to make older people feel valued, encourage contribution – (case study – older man, attempted suicide). • Aim to make North Coast NSW a model for the rest of Australia, “Community for all ages”; What would it take? • Remove attitudinal barriers: ageism – patronising, dismissive, stereotyping – requires community education and accurate information; • Address practical barriers: restricted income; disability; poor public transport; lack of appropriate social & recreational activities; social isolation • Celebrate longevity – success, not doom & gloom

  25. Technology – What will the Future Bring? • New developments in community care: Feros, BCS, Qld Govt – Smart Houses • Non-intrusive monitors – infra-red; if no-one passes a designated spot in a given time period, carer alerted (could be family member, neighbour, community service provider); • Monitors on water, gas • Bedside camera on front door • Caring for someone with dementia who wanders at night, carer not getting much rest; mat beside bed, when person with dementia steps on it, the carer’s pillow shakes to wake them up; • Sensors on toilet door; if person does not come out after given time, carer phoned (as above)

  26. The NBN • Telehealth – Geriatrician does rural/remote consultations from studio at PAH; • Benefits to patient • Benefits to family • Will allow results from GP surgery or RACF to be immediately transmitted to specialist. • New NBN telehealth projects – good outcome from previous project. • Person in community can “order up” health education, exercise, social interaction (Church in Coffs Harbour offering to “stream” Sunday service to those who cannot attend the church);

  27. Celebrate Older People Can We Live to 150 Years?

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