G. Support older workers and lifelong productivity
The aging of the regions’ population will bring profound changes over the coming years. The over-55 population in Metro Boston is expected to increase by 75% from 2000 to 2030. If current patterns of labor force participation continue, the retirement of Baby Boomers will deplete the region’s workforce, resulting in labor shortages. Many older workers are also highly skilled and possess “institutional memory” valuable to their organizations. As described elsewhere in this strategy, efforts to develop a skilled workforce and increase labor force participation rates will help to mitigate this change. There are also many things that can be done to support and retain retirement-age workers who wish to keep working.
The success of public and corporate practices to employ and retain older workers is contingent on a comprehensive understanding of the assets and needs of older workers. Many older people prefer part-time work so they can enjoy more relaxed lifestyles and pursue leisure activities. Others need flexible schedules to accommodate family care responsibilities or their own physical limitations. Many older people can afford to cut back their work hours only if they have access to employer retirement benefits. Policies that prevent part-time workers from collecting retirement benefits from their current employer often force older workers to leave their career job and work reduced schedules elsewhere, squandering firm-specific skills accumulated over long careers.
Low employment rates at older ages may also result from difficulties matching older job applicants with appropriate employers, or from employer perceptions—real or imagined—that older Americans cannot meet their workforce needs. Some older people may lack the proper mix of skills required in high-growth industries. Some employers may be reluctant to hire older workers because they fear they are too costly or because employers do not appreciate the attributes many older workers embody, including maturity, experience, and dependability. Many employers cite both compensation—including the rising cost of health insurance—and training costs as obstacles to hiring and retaining older workers. As a result, many employers have not learned to place a high value on their experienced workers, instead gearing their succession planning toward replacing older workers with younger ones.
In addition to improving the economic outlook, working longer can enhance individual well-being. Those who delay retirement can raise their own retirement incomes by avoiding early retirement reductions to their Social Security and defined benefit (DB) pension benefits, accumulating more Social Security and pension credits and other savings, and reducing the number of retirement years that they must fund.
Governments, nonprofit organizations, and educational institutions can promote employment at older ages by training older people, helping them find employment, and combating negative stereotypes about older workers.
There is a wealth of existing research and expertise in Metropolitan Boston to address this issue: the University of Massachusetts Boston, The AgeLab at the Massachusetts Institute of Technology, US Department of Health and Human Services/Administration on Aging, the Massachusetts Executive Office of Elder Affairs (EOEA), and the Massachusetts Association Of Older Americans, Inc. With support and encouragement from MAPC, EOEA could take a lead role in organizing these entities into an ad hoc group that will identify and collate existing research and identify research specific to metropolitan Boston that is still required.
21) Develop flexible approaches to part-time work and phased retirement
Employers must adopt new practices to help retain older workers. Flexible work arrangements may appeal to older adults who no longer wish to work traditional full-time schedules, either because of additional personal obligations (such as the need to care for aging parents or spouses or to help with grandchildren), worsening health, declining physical energy or stamina, or a preference to sacrifice some income for more control over their time without giving up paid employment entirely. Some older workers with enough savings or access to pension benefits can maintain their living standards with lower earnings. Flexible work arrangements include part time employment, flex time, job sharing, and telecommuting.
Many workers prefer to phase into retirement gradually with their current employers instead of changing employers or moving directly from full-time work to full retirement. However, pension policies, union regulations, Social Security guidelines, tax policies, federal regulations, internal public sector procedures, HMO regulations, and other existing conditions may limit older workers ability to remain productive in the workplace. For example, many older employees cannot afford to reduce their work hours unless they can draw on their retirement benefits, but federal law restricts employers’ ability to pay benefits from defined benefit plans to workers who remain on their payrolls.
21.a The Executive Office of Elder Affairs should lead a multi-agency initiative to increase training opportunities and disseminate best practices for retention of older workers
21.b Business and industry should develop a major initiative to promote phased retirement and flexible schedules
21.c Employers should adopt Deferred Retirement Option Plans
22) Re-tool workforce development programs to meet the needs of older workers
Employers are often unaware of how to accommodate and leverage the capacity of an older workforce. Older workers with lengthy professional resumes will enter post-retirement jobs with significant skills and abilities that can add value to most work environments. However, they often need to be re-trained in certain skill sets (such as computer software), and their knowledge base does not necessary qualify them for certification in sectors such as education and child-care where standards are increasing. As a result, the state’s job training and postsecondary education programs must adapt to meet the needs of older workers. Workforce development programs could play a bigger role in helping older workers attain the skills they need to be competitive in the job market. Workforce Investment Boards, in particular must be equipped to manage employer relations, placement, training, and support for older, post-retirement jobseekers that are tech savvy, well-educated, and looking for interesting and meaningful work that may be only tangentially related to their professional career.
22.a Stakeholders should seek federal funding for research on workforce development for older workers
23) Support financial literacy so workers are prepared for retirement
If older workers are to have more options available at retirement age, they must begin planning and saving for retirement. There are a variety of employer-driven opportunities to increase participation in retirement saving programs.
23.a The Office of the State Treasurer and Executive Office of Elder Affairs should develop a new initiative to increase financial literacy for older workers
23.b Employers should increase access to voluntary retirement saving programs
24) Re-Tool Councils on Aging
Nearly every community in Metro Boston is served by a Council on Aging. The mission of these volunteer, municipally appointed agencies is to link seniors with resources through service delivery or coordination, and community education and advocacy. Each council focuses on a specific municipality and, most offer information and referral, transportation, outreach, meals (congregate and home delivered), health screening, and fitness and recreation programs.
The infrastructure of these Councils must be strengthened to accommodate the needs of the growing senior population. Many Councils are not fully resourced, and are often undervalued by their community. The resources of these organizations will be considerably strained as the senior population grows. Furthermore, the leading edge of the Baby Boomer generation has already demonstrated that it will age quite differently than previous seniors, and will be looking for services quite different from those needed by existing seniors. Boomers will live longer, and fewer will be looking for traditional retirement and senior living models. Many will want to work part time, either to supplement their retirement income or simply to stay active. This generation also has different housing preferences; many will avoid isolated over-55 developments in favor of housing choices integrated into town centers where they will help contribute to the economic vitality of those town centers.
In order to respond to the magnitude of the demographic change and the shifting preferences of generations, Councils on Aging need to be re-tooled to meet larger and more diverse needs. Councils need to diversify their services, sharpen their public policy agenda, and develop regional service delivery strategies. With this re-tooling, they will be on the cutting edge of program development that meets the needs of older Americans living in the 21st century.
24.a MBTA and allied organizations should research the potential for Councils on Aging to utilize regional service delivery
Post new comment