Re-Inventing Retirement: Baby Boomers and The Aging Workforce

1. Re-Inventing Retirement: Baby Boomers and The Aging Workforce Craig Langford AARP Workforce Issues

2. “Long-standing human resource practices invest heavily in youth and push out older workers. This must change – and public policy, too – or companies will find themselves running off a demographic cliff as baby boomers age.” -- Harvard Business Review March 2004

3. About AARP • 36 million members • Association, Foundation and AARP Services, Inc. • Goals: • Enhance quality of life for all as we age • Lead positive social change and deliver value to members through information, advocacy and service • Work issues have become a priority

4. The Statistics • The Baby Boom generation, now 77.5 million people strong, represents the largest single sustained growth of population in the history of the United States. • A study of the Baby Boom generation suggests that rather than being the homogeneous monolith suggested, one key characteristic of this cohort is its diversity. • This diversity also translates into their visions of working. Most (8 in 10) report they intend on working past traditional retirement age for varying reasons. • However, need (money, benefits, etc) over “engagement” is increasing as a reason for individuals to remain in the workplace. • By 2010, 1 in 3 workers will be over the age of 50.

5. Boomer Demographics • Born between 1946 and 1964 • Life expectancy: 83 women, 79 men • Median household income: $62,300 • Married: 69% • Education: 30% college degree or more • Working: 68% Full-time, 12% Part-time • Health: 22% Excellent, 17% Fair/poor • Dual Income Households: 71% • Diversity: 3 in 10 are African American, Hispanic, or Asian

6. 18,437 15,039 15,026 14,505 2015 2025 Older workers will top 33 million by 2025 Past and Projected Number of Workers Over Age 55, 1970-2025 40,000 33,346 35,000 31,851 30,000 25,000 20,000 15,000 10,000 5,000 0 1970 1980 1990 2000 In Thousands Source: US Census Bureau

7. Boomers and Work • 1 in 4 who plan to work say they expect to find employment that is entirely different from the work they do now or did in their worklife. • In large numbers (89%), older workers say their ideal job would include opportunities to learn something new. • Most know that they will need to retrain in some form to remain in or re-enter the workforce. What Kind of Work Will They Do? • Professional specialties • Teaching • Retail Sales • Office Support • Consulting • Nursing and other health related services From AARP’s Staying Ahead of the Curve, 2003

8. What Does This Mean For Business? The boomers will reinvent "retirement," working longer either because they want to or they need to. Older workers offer businesses a unique combination of experience, loyalty, enthusiasm and a strong work ethic. As the workforce ages, businesses that know how to recruit and retain mature workers will gain a competitive edge. According to HR Professionals, older workers…. • Add diversity of thought / approach • Are loyal to their employer • Take work seriously • Are willing to work different schedules • Have a strong work ethic

9. From Statistics to Action: Goals of the AARP Workforce Team Employers adopt policies and practices that are more appealing for individuals as they age within their profession or industry: • Age-neutral hiring, retention, performance reviews • Age as part of diversity; respect in the workplace • Adequate benefits programs (retirement savings and health insurance) • Flexible work options • Ongoing training and development

10. Adapting to an Aging Workforce • Conduct an internal audit of policies and practices • Evaluate recruitment and HR practices • Do your frontline recruiters understand ADEA? • Sensitivity training • Internal promotion of 50+ workers • Leverage intergenerational opportunities • Foster understanding and respect • Mentoring • Learn from your older workers • Encourage training and growth for all employees • Enhance employment marketing to 50+ audience • What does your company offer that appeals to the 50+ audience? • Media and advertising • Incorporate images of older workers in materials • Made accommodations in the workplace if necessary • Provide resources for caregiving • Forge community partnerships • Government • Nonprofit • For-profit • Education

11. Strategic Workforce Alliances To be strategic, we must all sustain the relationships we build with our external partners by listening, learning, sharing, and developing mutually beneficial strategic plans with them. • AARP’s Featured Employers Program National companies who have substantial hiring needs and who are actively seeking older workers and have a commitment to reviewing policies and practices. • National Advisory Council 23 Major national associations from business, industry and nonprofit. Dedicated to encouraging a national dialogue on the value of the mature workforce. Business and industry to develop strategic plans for engaging older workers.

12. Resources AARP Employer Resource Center www.aarp.org/employerresourcecenter • Publications • Smartbriefs • Links to other resources

13. To move the needle on the issue of the aging workforce, it is necessary to position your organization or company as a trusted collaborator with the wide and full array of public and private workforce players at the national, state and community level who themselves have the strategic need and desire to make the workplace changes necessary to staff the workplaces of the future.

14. To move the needle on the issue of the aging workforce, it is necessary to position your organization or company as a trusted collaborator with the wide and full array of public and private workforce players at the national, state and community level who themselves have the strategic need and desire to make the workplace changes necessary to staff the workplaces of the future.