GERONTOLOGY EXAM 4 STUDY GUIDE PRODUCTIVE AGING Changes in the economy that have changed work and retirement Economy shaped by information technology and global composition Manufacturing service sector Downsizing layoffs early retirement incentives Factors affecting timing of retirement Success and stability of financial resources Health and well being Nature of the job Gender ethnicity and family relationships Pulled into retirement pushed back into workforce Factors that affect satisfaction with retirement Voluntary vs involuntary Good health Adequate income Retain sense of autonomy Dissatisfied with retirement dissatisfied with life Good health and poor health contribute to retirement decisions Early retiring in good health adequate resources Early retiring in poor health underemployment job loss Caregiving related to gender and retirement Women in the workforce longer African American women stay in the workforce the longest Retirement is associated with marital relationships in later life Retirement does not only affect the retiree Bridge job refers to employment following a full time career typically part time or of short duration they want flexibility Barriers to employment Lack of job hunting skills More vulnerable to skill obsolescence Related to geographic locations Fewer opportunities for job retraining Age based employment discrimination persists Ways older adults can remain productive after retirement GERONTOLOGY EXAM 4 STUDY GUIDE Working volunteering caregiving providing assistance etc Older adult volunteers Provide meaningful social roles Enhance well being Give organizations experienced reliable workers at minimal cost Religious participation and civic engagement More likely to vote than younger high levels of civic competence Programs to promote lifelong learning Road scholar Free college courses Kent senior guest program Differed compensation Defined benefit promises a specific amount Defined contribution depends on how much contributed and how invested ECONOMICS OF AGING AND PUBLIC POLICY Parts of the three legged stool of retirement income 1 Private pensions 2 Individual savings and assets 3 Social security Private pensions 401k Net worth all assets the debts Social security Funding from payroll check Largest source of income 65 Universal program for poor and affluent Benefits increase with cost of living Social security benefits Must have 40 credits to receive it 1 credit 1 000 Get 40 back of preretirement In year 2037 social security will begin to have to reduce benefits if we do nothing until then Proposals to fix social security GERONTOLOGY EXAM 4 STUDY GUIDE Benefit cut Increase revenue o PROS 13 cut would solve problem raise age eligibility change cost of o CONS greatest hardship and no time to adapt 67 70 work longer living do nothing but cut at 2037 hardships to disadvantages unnecessary increases fixed 78 of dollars 28 received 118 500 o Increase payroll tax today raise payroll tax by 2 of earnings o Change earnings exempt from payroll tax only pay taxes on incomes up to o Transfer set up costs to general revenues need to raise taxes and or cut o Raise return on assets invest in stocks stocks risky only reduce short fall o Do nothing but raise taxes in 2037 government spending by 10 by 35