Exam 4 Productive Aging Changes in the economy that have changed work and retirement Downsizing layoffs early retirement incentives o Eliminates older workers loss of experience and skill o Takes longer to find new jobs if you are over 55 Factors affecting the timing of retirement Access and stability of financial resources lack of savings and rise of cost of living and health care costs Health and well being functional limitations and access to health insurance o Early retirees are healthier and more active than early generations o Good health adequate resources poor health job loss under employment The nature of the job quality of jobs and rewards of working retirement as escape from boring repetitive jobs Gender ethnicity and family relationships women base retirement decisions based on the whole family while men base it on themselves African American women stay in the workforce a lot longer push and pull of family caregiving may need extra money for caregiving or have to quit job to take care of family Factors that affect satisfaction with retirement Voluntary vs involuntary this is a big one Good health Adequate income Dissatisfied with retirement dissatisfied with life Retain sense of autonomy Retirement is associated with marital relationships in later life Wives based retirement decisions on family caregiving needs and needs of the family whereas husbands make decision more independently Bridge Job refers to as employment following a full time career typically part time or of short duration Older workers want in terms of employment options Options in working full time on flexible schedules or working less than full time Win win for business and workers Reality mismatch Barriers to employment for older workers Lack of job hunting skills More vulnerable to skill obsolescence Related to geographic locations Fewer opportunities for the job retaining Age based employment discrimination persists Application process online applications Other ways that older adults can remain productive even after retirement Working high levels of civic engagement volunteering caregiving providing assistance More likely to vote than younger adults Religious participation Older adults and volunteering Younger better educated financially secure women volunteer more than men Often begins earlier in life Most volunteer by mentoring younger children young adults and by helping frail older adults Programs to promote lifelong learning Road Scholar Free college courses o Ex Kent State Senior Guest Program Economics of Aging and Public Policy Parts of the three legged stool of retirement income Private pensions Individual savings and assets Social Security Changes in private pensions Move to more defined contribution pensions where employee contributes and then and only then does employer contribute all of the control in hands of employee for how money invested Defined Benefit Promises a specific amount Defined Contribution Amount depends on how much contributed and how invested ex 401k Net worth all assets minus the debt Largest for older adults Social Security Funding from payroll taxes Regressive pay same regardless of earnings Largest source of income for adults 65 and over Earning cap after you make a certain amount of money you do not have to pay social security on it cap currently around 108 000 This is vital for poorest elderly This is the minimum income for almost all older adults Universal program that benefits both poor and affluent Benefits increase with inflation Benefits are calculated based on 35 highest years of earnings You need 40 credits to get retirement benefits If we do nothing social security will have to reduce benefits in 2037 Proposals to fix social security Cutting benefits Creates hardships for disadvantaged groups o Lower income in retirement o Greatest effect on lower earners disabled and oldest old Increasing revenues by increasing payroll taxes Creates hardships for poor people o Lower income during working years o Greatest effect on those with higher incomes Elders in Healthcare Long term Care Issues regarding life extensions and the health care system Availability of professionals specializing in aging we need more Cost of long term care planning for long term care who will provide and at what cost Increased need for home healthcare Only about 5 of elders are in nursing homes or other long term care facilities Growing healthcare costs are due to technological advances conflict between curative goals of medicine and chronic care needs of older adults doing treatments for things that are not going to get better and limited coordinated health and LTC policy NOT DUE TO INCREASE IN ELDERLY POPULATION Medicare Federal health insurance for people age 65 and older Part A hospital insurance Part B Medical insurance tests x rays Part D Prescription Drug Coverage this does not cover everything What is not covered by Medicare Foot care Dental care and dentures Hearing aids and exams to fit hearing aids Acupuncture Long term care for more than 100 days Care outside of the US Cosmetic services Medicaid Provides health care for the poor Means tested Eligibility based on income and assets This is a mechanism to pay for long term care in later life Medicaid Waiver Program Home care program from those 60 and over Able to remain safely at home with consent of physician Earn less than 1 911 per month with no more than 1500 in countable assets Frail enough to require nursing home level of care Long term care insurance Private insurance designed to cover the cost of institutional and sometimes home based service for people with chronic illnesses disabilities Factors that predict nursing home placement Poor health Functional impairments Frailty Other long term care options Assisted living Provide some supportive services but there is an element of negotiated risk where residents still can make many decisions for themselves e g not following dietary restrictions leaving the assisted living to go to dinner etc Home healthcare An example is Passport Medicaid Waiver programs Older Americans Act Created a national network for the comprehensive planning coordination and delivery of aging services Programs like Senior centers Meals on Wheels home health services and adult day care Factors related to nursing home residents satisfaction Respect from staff Sense of control Voice in determining care End of Life Issues Living Wills Allow health care providers to withhold or withdraw treatment if you