Productive Aging Work Leisure Retirement Examples of Productive Activities 10 29 2014 Contributions to families neighborhoods and society Changes in the American Economy Economy shaped by information technology and global competition Manufacturing service sector Downsizing layoffs early retirement incentives o Eliminates older workers loss of experience and skills o Takes longer to find new jobs The Meaning of Retirement Retirement o Nonparticipation in the paid labor force o Receipt of income from pensions Social Security etc Ages 62 65 increasing to 67 Changing Financial Security Lack of savings Rising costs of living health care costs 43 of workers who plan to work in retirement say they will do so in order to keep their health insurance Health and Retirement Functional limitations and access to health insurance Early retirees o Good health adequate resources o Poor health underemployment job loss Healthier and more active than early generations Nature of the Job Job satisfaction employee morale and organizational commitment Quality jobs and rewards of working Retirement as escape from boring repetitive jobs All Connected Gender Ethnicity and Family Life Gendered retirement Push and pull of family caregiving Retirement gender and ethnicity Retirement system exacerbates inequalities Quality of Retirement Related to same factors as timing o Voluntary vs involuntary o Good health o Adequate income o Retain sense of autonomy Dissatisfied with retirement dissatisfied with life Adjusting to Retirement Important life transition Retirement is a process no phases Most fare well in retirement o Financial security o Health o Supportive social network Retirement does not only affect the retiree Social relationships associated with o Decision to retire especially for women o Adjustment to retirement Remaining in the Workforce Likely Baby Boomers will work past retirement age Job availability Multiple employment trajectories multiple jobs Need for retraining The Right Fit Flexible Hours and Older Workers Offer options and choice in regards to o Work full time on flexible schedules o Work less than full time Win win for business and workers Reality mismatch Barriers to Employment Lack job hunting skills More vulnerable to skill obsolescence Related to geographic locations Fewer opportunities for job retraining Age based employment discrimination persists Life Beyond Work Growth in Leisure Leisure o Satisfying absence of obligation How do you expect to view leisure in later life o Recreation relaxation personal development and service to others o Related to increased life expectancy Productive Aging Older adults already productive in many ways o Working volunteering caregiving providing assistance etc Other Productive Roles Religious participation Civic engagement voting volunteering Voting behavior o More likely to vote than younger adults o High levels of civic competence Older Adults as Volunteers 2003 AARP Survey 51 of adults 45 and older Major benefits o Provide meaningful social roles o Enhance well being o Give organizations experienced reliable workers at minimal costs Either want to mentor younger people Or help older adults that are less fortunate than them Older Adult Volunteers Vital contribution to society More likely to volunteer o Younger better educated financially secure o Women vs men Often begins earlier in life Lifelong Learning Road Scholar Free college courses Ex Kent State Senior Guest Program What Does the Future Hold Aging of Baby Boom holds implications for the workplace and the face of retirement Need for new workplace policies training Factors that influence timing of retirement also influence adjustment to retirement continuity in satisfaction Broaden opportunities limit inequalities Economics of Aging Public Policy 10 29 2014 Public Policy on Aging Improvement in older adults economic position Still many live below poverty line Inequality in income increases in retirement o Accumulated disadvantage Lower incomes lower benefits Less access to pensions Sources of Retirement Income Three legged stool o Private pensions o Individual savings and assets o Social Security Private Pensions Deferred compensation Defined benefit o Promises a specific amount Defined contribution o Amount depends on how much contributed and how invested Other issues to consider Employee retirement income security act ERISA Pensions regulated but still pensions o Can be terminated if company folds o Are not required to include part time employees o Include vesting rights Individual Assets and Savings of retirement income Net worth all assets minus the debts Assets real estate savings and personal property Home equity largest asset for older adults Social Security Main features More than a retirement program Funding from payroll tax Regressive pay same regardless of earnings Largest source of income for 65 older Vital for poorest elderly Minimum income for almost all older adults Universal program benefits both poor and affluent Another Important Feature Benefits increase with cost of living Which president did this Nixon Social Security Benefits 2014 average monthly benefit 1 294 40 of pre retirement earnings Frequently Asked Questions Benefits calculated based on 35 highest years of earnings Credits needed for retirement benefits 40 credits The amount of earnings it takes to earn a credit changes each year 2010 1 credit for ea 1 120 Calculations are complex Debate over Social Security Establish by Social Security Act of 1935 Related to age and record of earnings o Depends on how old you are and when you collect benefits o When you re eligible depends on your age Pay as you go system o Payroll taxes of current workers pay for current retirees Social Security Trust Fund o Surplus from payroll taxes The Future of Social Security Number of workers per beneficiary is decreasing 2016 Will need to use interest from the Trust Fund to help pay benefits In 2037 o Trust fund will be empty o Social security only able to pay 78 on the dollar o Retirees still will receive benefits will just received LESS What Should You Know Be able to briefly describe each proposal Be able to identify which changes would involve Benefit Cut vs which would Increase Revenues Be able to describe who is most affected by the proposed changes Be able to describe main differences between Benefit Cut vs Increasing Revenues 2 Ways to Fix the Problem Cut benefits Pros and cons for each approach Increase revenues Benefit Cut An