Aging Workforce News

Nordic Labour Journal Publishes Issue Focused on "Age is no Barrier"

2012-02-11T11:18:00.000-05:00

The Nordic Labour Journal has published an in focus issue on "Age is No Barrier." Focused on demystifying old age and presenting points of view and debates emerging from changing demographics, articles in the Journal include:

Source: Nordic Labour Forum (Feburary 9, 2012)

Northern Europe: Forum Addresses Encouraging Older Workers To Stay in Workforce

2012-02-11T11:04:00.001-05:00

At the Northern Europe Forum, on 8-9 February 2012, the leaders of the Nordic and Baltic countries and the United Kingdom met to discuss common social challenges, focusing on two important issues that are vital to achieving long-term sustainable growth: (1) How do we get more women into top positions and more women entrepreneurs? and (2) How do we get senior citizens to stay longer in the labour force? In addition, a conference on "Beyond 65: new life chances in the labour market" was organized by the Government Commission on the Future of Sweden to run alongside the Northern Future Forum.

On the latter issue, "[f]lexibility, a voluntary basis and respect for the skills and experience of senior people were among the most frequent words heard in the discussion on how the nine prime ministers could increase the proportion of senior people in the workforce. The delegates at the Northern Future Forum seemed to agree that the issue is complex and requires a change of attitude across the whole of society." A summary of the day's discussions as well as a webcast on the topic are available.

In preparation for the forum a paper--"Nine countries’ perspectives on women entrepreneurs and leaders and senior citizens in the labour force"--was published with a country-by-country description of the initiatives that have been taken to get older persons to stay in the work force. In addition, documents were prepared of statistics of the number of seniors in the workforce.

At the Commission on the Future session, the message from Swedish Prime Minister Fredrik Reinfeldt was that more people must be encouraged to work into older age and they must be prepared to retrain or change professions or careers during our working lives.

Sources: Nordic Labour Journal "Older people to be encouraged to work for longer" (February 9, 2012); Government of Sweden Northern Future Forum

Singapore: Reactions to Proposals Raising Age Before CPF Rates Are Cut

2012-02-11T09:38:00.000-05:00

After Singapore Prime Minister Lee Hsien Loong said that employers' contribution rates to the Central Provident Fund (CPF) for older workers have to go up gradually, concerns have been expressed as to what the effect will be on older workers. Currently, CPF rates are cut when workers reach 50 years old, and cut further when they turn 65.

Unions have welcomed the move, recommending that the policy would be revised so that the drop from 16% to 12% takes place at age 55, 12% to 9% at age 60, etc., stressing that businesses can tackle the extra costs with some smart planning. However, others are worried that it will depress employment for older workers, noting that a larger proportion of older workers kept their jobs during the recession because their CPF was lower and so they were cheaper to retain.

Employers also said that raising the CPF contribution rates will disadvantage older workers, as "it does not help to price an older worker beyond what the employer can afford", reckoned Dr Randolph Tan, SIM University's business programme head.

Sources: Channel News Asia "Employers' contributions to older workers' CPF to be raised: PM Lee" (Feburary 8, 2011); AsisOne "Employers concerned over higher CPF contribution rates" (February 10, 2012); The Business Times "Start cutting CPF rates only at age 55, say unions" (February 11, 2012)

Spain: Government Changes to Labor Policies Make it Cheaper to Discharge Older Workers

2012-02-10T09:58:00.000-05:00

According to press reports, the Spanish government is taking steps towards ending a two-tier labor market that favors an older generation of workers with robust benefits who are very expensive to let go, but gives few rights to generally younger workers on temporary contracts. Specifically, the government plan would abolish contracts allowing severance packages of 45 days' pay for every year worked to employees deemed to have been unfairly dismissed, and instead would provide that employers firing staff will have to offer just 33 days' pay per year, or 20 days if the business is facing losses over a sustained period. In addition, it would cap severance pay at the equivalent of two years' wages, almost halving the limit from a previous 3 1/2 years.

Source: Reuters "Spain cuts firing costs in new labor reform" (February 10, 2012)

Vision Benefits Underutilized by Older Workers

2012-02-07T09:04:00.000-05:00

The annual Employee Perceptions of Vision Benefits survey conducted by Transitions Optical, Inc. finds that today’s aging U.S. workforce isn’t fully taking advantage of vision benefits provided by companies, and they are "missing out on a critical preventive care opportunity and leaving themselves at higher risk for age-related vision problems, eye diseases and chronic conditions that impact eye health and compromise productivity." Specifically, the survey found that baby boomers (ages 45-64) are only slightly more likely than younger employees to enroll in their vision benefit (79% vs 75%), and the 34% of baby boomers and 23% of those ages 65+ who enroll do not utilize their benefit to receive a comprehensive eye exam.

According to the survey, employees’ actual experiences with many vision-related issues do increase with age, but even older employees had limited awareness of these changes. Thus, for example, half of baby boomers were unaware that they may have more trouble seeing far away or seeing well in dim lighting as they grow older. Similarly, three in 10 were unaware of the increased risk for eye diseases such as cataract, glaucoma and macular degeneration.

Employers were also cited for not taking appropriate steps to make sure employees understand their vision benefit. While only 18% percent of employees reported that their employers do not communicate to them about their vision benefit, nearly 60% percent of employers provide only basic vision plan information during the open enrollment period and only 13% of employees said their employers also include information on the importance of eye health.

Source: Transitions Optical, Inc. Press Release (January 31, 2012)

Canada: Economists Rekindle Debate about Raising Retirement Age to 70

2012-01-26T21:58:00.000-05:00

Following up on recently published research, two economists from McMaster University economists are suggesting that demographic changes require raising the age of eligibility for the Canada Pension Plan to 70. According to press reports, future generations will "suffer the financial consequences" unless these changes are implemented, based on research by Byron G. Spencer and Frank T. Denton, published in 2011 ("Age of Pension Eligibility, Gains in Life Expectancy, and Social Policy").

As presented in the paper:

Canadians are living longer and retiring younger. When combined with the aging of the baby boom generation, that means that the “inactive” portion of the population is increasing and there are concerns about possibly large increases in the burden of support on those who are younger. We model the impact of continued future gains in life expectancy on the size of the population that receives public pension benefits. We pay special attention to possible increases in the age of eligibility and the pension contribution rate that would maintain the publicly financed component of the retirement income security system.

With no changes, by 2035, there will be only two people in the workforce for each person over the age of 65, instead of the four-to-one ratio currently existing, and that would require the contribution rate for CPP to double, from 6.4% to 12.3%.

Source: Toronto Star "Too selfish to retire? Economists urge pushing pension age to 70" (January 26, 2012); Hamilton Spectator "Raise pension age to 70: Mac study" (January 26, 2012)

Energy and Utility Industry: Preparing for Rapidly Changing Workforce Demographics

2012-01-20T09:17:00.000-05:00

PricewaterhouseCoopers (PwC) has issued a report on how power and utility companies can best address industry changes within their organizations as they struggle with the awareness that an aging workforce is a significant risk to their operations. In "Change is happening: Is your workforce ready?," PwC looks into four areas in which successful, innovative and forward-thinking power and utility companies are effectively addressing change: developing and retaining leaders, effectively leveraging performance measurement and technology, realigning the organizational structure, and ensuring that the Human Resources (HR) team plays a significant role in overall business strategy.

Among other things, the report (based on a May 2011 survey) states leaders must have the skills to maanage:

a workforce soon to be challenged with large-scale turnover;
a workforce, trimmed through retirements and reductions, that is increasingly being asked to accomplish more with resources that are spread thin;
the interaction between workers in a multigenerational labor force.

According to the survey, more than 60% of respondents rated the task of developing new leaders as difficult. Internal politics and lack of management support remain the greatest obstacles in developing effective new leaders, according to more than 50% of the survey respondents.

Source: PwC Publication Announcement (January 18, 2012)

Europe: Active Aging Year Gets off to Active Start

2012-01-16T11:52:00.000-05:00

For Europe, 2012 is "European year of active ageing and solidarity between generations," and it has gotten off to an active start. The opening conference begins January 18, including a presentation by Danish EU Presidency, Eurofound's Donald Storrie, on "Senior citizens on the labour market--the need and potential of reforms."

The European Commission released a Eurobarometer showing that 71% of Europeans are aware that Europe's population is getting older, but only 42% are concerned about this development. Among other things, the Eurobaromter shows that who is considered "young" and "old" varies significantly across countries. Thus, for example, in Malta, Portugal and Sweden, people under 37 years are considered young, while in Cyprus and Greece people are considered young up to the age of 50.

In terms of having a job, only one in three Europeans agrees with the idea that the official retirement age will have to be increased by 2030, even though this is now a clear policy priority in many Member States. However, there is strong support (61%) for the idea that people should be allowed to continue working once they have reached the official retirement age. 53% reject the idea of a compulsory retirement age, but there are huge differences across Member States.

Earlier, on January 9, Eurofound research on "Impact of the recession on age management policies" was published. Authored by Chris van Stolk, the research explores the age management practices of companies in light of restructuring undergone during the recession, looking at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union states. Among its conclusions:

Countries and establishments consider and discuss age management in different ways. All countries have policies that perform this function in some way, but the comprehensiveness of policies varies. The trajectory of reform differs between countries as does the urgency to target initiatives at older workers. In some cases and especially during the recession, older workers
were often not seen as priority groups. There was greater concern about the employability of younger workers. Given that the crisis affected younger workers disproportionately compared to other age groups, there were often good reasons to prioritise this group rather than older workers.

Source: Eurofound European Year 2012 Updates (January 13, 2012)

United Kingdom: Survey Finds Ageism Embedded in British Society

2012-01-13T20:12:00.002-05:00

The UK's Department for Work and Pensions has published a report comparing attitudes between people in their 20s and people aged 70 and over, showing that age-related discrimination and stereotyping remain rooted in British society. According to "Attitudes to Age in Britain 2010-11," "A lack of mutual connection and respect across the age range is likely to foster stereotypes, misperceptions and discrimination. This suggests that different types of support are likely to be required to tackle the problem for different age groups."

Among other things, the report found:

respondents thought that "youth" ends at 41 and "old age" begins at 59, but this varied by as much as twenty years in relation to the age of the respondent.
while most respondents were accepting of a suitably qualified 30-year-old or 70-year-old boss, three times as many (15% and 5@, respectively) thought that having a 70-year-old boss would be 'unacceptable' compared with having a 30-year-old boss.
respondents that were employed full-time or self-employed were far less likely to have experienced age discrimination than the unemployed working part-time groups.

Source: Department for Work and Pensions Press Release (January 12, 2012)

Despite U.S. Recession, More Workers over 55 Than Ever

2012-01-13T08:53:00.000-05:00

An article in The Washington Post reviews Bureau of Labor Statistics data finding that although the recession has "thinned the ranks of other generations in the workforce, more people older than 55 are employed than ever before." Peter Whoriskey reports that while the "reasons for the surge of older workers are complex," experts point to "the growing fear among older Americans that they lack the means to support their retirement needs."

According to BLS data, those 55 and older in the workforce has risen by 3.1 million, or 12%, since the recession started. In addition, there are more people 75 years and older at work. This is not just absolute numbers: the percentage of those 55 and older at work has climbed from 38.9% to 40.3% during the recession.

Among other things noted are the shift from employers provided defined benefit plans to reliance on 401(k) plans, which increases the incentive to continue working in later years.

Source: The Washington Post "Amid downturn, more older Americans employed than ever before" (January 13, 2012)

United Kingdom: Survey Finds Pension Crisis Will Force Older Workers To Work or Earn into Their 70's

2012-01-09T23:22:00.000-05:00

According to researchers for Friends Life Limited, a generation of "Wearies"--Working, Entrepreneurial and Active Retirees--"could be forces to continue working into their seventies and beyond due to hardships caused by the looming pensions crisis." Specifically, the study--"Pensions: Crisis and Reforms"--finds that 51% of Britons who are already retired said they would be prepared to do part-time work to boost their pensions, a figure which rises to 75% among those who are yet to retire.

Martin Palmer, head of corporate benefits marketing at Friends Life, said:

"We're expecting the traditional image of the pensioner with slippers and rocking chair to change completely.

"Many will not have saved adequately for a secure retirement and, with years of fiscal austerity taking their toll, by 2020 many people in their seventies simply will not be able to afford to give up working."

Source: Friends Life Ltd. News Release (January 9, 2012)

Study: Effect of Aging Workforce on Workers' Compensation Claims

2012-01-05T09:08:00.000-05:00

The National Council on Compensation Insurance, Inc. (NCCI) has released a report examining the potential adverse impact on workers' compensation loss costs as baby boomers postpone retirement and accelerate the aging of the workforce. The paper--"
Workers Compensation and the Aging Workforce" authored by Tanya Restrepo and Harry Shuford--confirms that the share of older workers is increasing but finds, among other things:

in terms of loss costs per worker, the major difference among age groups occurs between the 25 to 34 and the 35 to 44 age groups, while all groups of workers age 35 to 64 appear to have similar costs per worker;
the long-standing tenet that younger workers have much higher injury rates is no longer true, so that differences in loss costs by age in recent years primarily reflect differences in severities since differences in frequency by age have virtually disappeared;
differences in leading types of injuries are a major factor in differences in severity by age, with older workers tending to have more rotator cuff and knee injuries while younger workers have more back and ankle sprains;
on the indemnity side, higher wages are a key factor leading to higher costs for older workers;and
for medical, more treatments per claim are a material factor.

Source: National Council on Compensation Insurance, Inc. Research & Outlook (January 4, 2012)

Australia: Study Identifies Barriers Preventing Older Workers from Remaining In or Re-entering in the Workforce

2011-12-18T11:31:00.000-05:00

Australia's Minister for Employment Participation, Kate Ellis, has released a report identifying age discrimination, physical illness, injury and disability as key barriers preventing older Australians remaining in or re-entering the workforce. All together, 14 barriers are identified and discussed in "Ageing and the Barriers to Labour Force Participation in Australia," an interim report prepared by the Consultative Forum on Mature Age Participation:

discrimination in employment on the basis of age, care-giving responsibilities, flexibility of employment arrangements, issues around private recruitment firm practices, job search assistance, leisure time trade-off, mental health barriers, mismatch of skills and experience with industry demands, physical illness, injury and disability, re-entry issues barriers of the VLTU (Very Long-Term Unemployed), re-training and up-skilling barriers, superannuation, tax-transfer system, and workplace barriers.

According to one analysis, the report found found that a mature worker’s own health--not workplace barriers--was the biggest barrier preventing them from entering the workforce, staying employed or working beyond retirement age. Thus, while "physical illness, injury and disability" was given a 100% importance rating, workplace barriers--such as poor or difficult workplace conditions or environments and physically demanding occupations--was only given 16.7%.

However, the report also noted that "It is important to note that the barriers presented in this paper are not independent of each other. Rather, many are interrelated and policy responses need to recognise this complex reality. As such, responses to these barriers need to involve many stakeholders, including government, employer organisations, employers, trade unions as well as mature age people."

"The Australian Government recognises that older Australians, with their skills built over a lifetime, make a massive contribution to our economy and our community," Ms Ellis said.

"We want to clear the way for older Australians to be able to stay in the workforce if they want to and this means tackling issues such as age discrimination or looking at how workplaces, equipment and jobs can be modified to better suit older Australians.

Source: Minister for Employment Participation Media Release (December 13, 2011)

Australia: Report on Economic Potential Urges Government Action To Improve Labor Participation by Older Workers

2011-12-17T11:37:00.034-05:00

The Advisory Panel on the Economic Potential of Senior Australians has submitted its third and final report to Australia's Deputy Prime Minister and Treasurer, making recommendations in areas it has found to be vital to enabling senior Australians to actively contribute to all aspects of society. While addressing issues across the aging spectrum, including an aging agenda, housing, lifelong learning, active aging, volunteering and philanthroppy, and age discrimination, the report--"Realising the economic potential of senior Australians: turning grey into gold"--makes a series of recommendations concerning participation in the labor force, including the following:

The federal government must engage peak employer and industry groups to assist individual employers to develop and implement older worker employment strategies, starting with a series of high profile seminars across the country.
All levels of government must embed age diversity within their workforces and model best practice on attracting, developing, and retaining older workers.
The federal government must work with industry to extend flexible work arrangements to people aged 55 and over by amending the law to include the right to request flexible work for this age group or through best practice industry standards.
The federal government must commission a review of the income support framework for people aged between 50 and age pension age (including income thresholds) and
employment support programs for mature age workers, to ensure individuals have appropriate incentives and assistance to work to their fullest capacity.
The federal government must work with state and territory governments to amend workers’ compensation regimes to ensure older workers are not disadvantaged, convene a roundtable with the insurance industry to examine the availability and affordability of income protection insurance for workers over age 60, and to identify ways of encouraging the private insurance market to offer income protection insurance to workers regardless of their age.

According to Everald Compton, the Panel's Chair:

"Of particular importance will be the ability of seniors to stay in the workforce for a significant period after they reach the 'traditional age for retirement' and their ability to serve Australia as volunteers. We also want senior Australians to help turn Australia into a powerhouse of philanthropy".

"The work of this panel is only the start of action needed to embed a national ageing agenda in Australia", said Everald Compton. "Government of all levels need to continue working together to develop strategies out to 2050 to capitalise on the potential of senior Australians whose aspirations change with every generation".

Source: Advisory Panel on the Economic Potential of Senior Australians Media Release (December 12, 2011)

Generations of Talent Study: Effects of Country, Age, and Career Stage on Employes

2011-12-05T20:46:00.000-05:00

The Sloan Center on Aging & Work at Boston College has published a study of employees' work experience, finding that those 40 years old and older are the most engaged and demonstrate the highest level of organizational commitment, and that those 50 years old and older are the most satisfied with their jobs. The "Generations of Talent Study" assessed the effects of country, age, and career stage among employees worldwide, based on work experiences from 11,298 individuals, working for seven multinational companies, at 24 worksites in 11 countries.

Among other things, the study found that employees working in young-developing countries (Brazil, China, India, Mexico, South Africa, Botswana) show higher levels of work engagement and organizational commitment than do those in the old-developed countries (Japan, the Netherlands, Spain, UK, U.S.). In contrast, job satisfaction levels are similar on average for employees working in the young-developing countries and in the old-developed countries. Dr. Marcie Pitt-Catsouphes, Director of the Sloan Center, noted that "[c]ontrary to popular opinion, older workers are the most engaged, and forward-thinking companies need to begin strategizing about how to capitalize on this asset."

In addition to an overall report on "Effects of “Old-Developed” versus “Young-Developing” Country Type and Age-Related Factors on Work Engagement, Job Satisfaction, & Organizational Commitment," the Sloan Center has published individual reports about the effects of country and age on employees for the following countries:

Source: Sloan Center on Aging & Work at Boston College News Release (December 1, 2011)

Canadian Chamber of Commerce Calls for Improving Incentives for Older Workers Staying on the Job

2011-12-02T09:11:00.041-05:00

The Canadian Chamber of Commerce has issued a discussion paper, reinforcing the argument that retaining older workers in the workforce is part of the solution to avoid the skills crisis Canada is on the verge of experiencing, and calling for the removal of disincentives that discourage seniors from working. In "Incenting Seniors to Continue Working," the Chamber set the table for changes as follows:

Seniors represent a constituency that needs to be better integrated into the workforce. They possess the essential skills employers need. Many do want to continue working and view work as an important part of their life balance. Yet, in 2010, only a small percentage of individuals 55 years of age and over were in the labour force.

Accordingly, the paper pinpoints six key areas to be addressed in order to encourage the ongoing participation of seniors in the workforce:

pension reform;
tax reform;
flexibilty in the workplace;
innovative tools dedicated to the hiring of seniors, including online guides and websites;
lifelong learning and training; and
advancing a new business culture aimed first at retaining, rather than replacing, senior workers.

Source: Canadian Chamber of Commerce News Release (December 1, 2011)

Survey: Older Workers More Secure in Roles, Less Confident in Their Orgnaizations

2011-11-12T09:26:00.000-05:00

In its 2011 Global Mindset Index, rogenSI reports that "workers are confused and uncertain about where their organisations are heading and rather than being innovative and forward thinking in their roles are instead playing it safe and holding on for all they’re worth as a renewed sense of uncertainty ripples across the globe." With respect to workers 50 and over, the report finds that the older a worker gets, the less confidence the worker has in his organization and where it’s going, but the more stable the worker feels in his role.

What is clear is that older workers are not lacking in confidence in their own abilities - they are, however, feeling unsure about their organisations’ prospects. It would seem as though their experience in the workforce has taught them to see the future a little more clearer than their younger colleagues — they know the warning signs of what’s to come because they have seen it all before.

rogenSI suggests that, left unattended, this can be a concern for organizations. In particular, this degree of malcontent can result in an inability to retain key staff. Thus, it is important to continue to provide feedback, support and guidance. Otherwise, costs associated with recruiting and training new staff will increase and with large numbers of new staff in critical roles, performance and outputs will undoubtedly be impacted.

Source: rogenSI "Don't Stop Believing: 2011 Global Mindset Index" (2011)

Aging and Demographics Identified as Part of Unrelated Trends Driving Talent Management

2011-11-09T17:40:00.020-05:00

Research in thought leadership from Taleo Corporation finds that a number of otherwise unrleated changes around the world are likely to have a profound impact on the way companies of all sizes compete in an increasingly knowledge-based global economy. Specifically, "The Future of Talent Management: Underlying Drivers of Change" identifies integration of global economies, aging and demographics, a blurring of inside and outside talent, the Arab Spring uprisings, and the need to engage knowledge workers with mobile, social networks and other digital tools as key to defining how companies acquire and manage talent during the next five to 10 years.

With respect aging and demographics, the report states:

Baby Boomer retirement is top of mind in the United States, but the real demographic challenges are found in other developed countries, where population growth rates and aging populations are poised to stifle local economies. That means companies must move talent from areas of abundance to scarcity. And here, some new shifts are occurring. As once-new markets like China and India mature and labor there achieves parity with other developed economies, companies will look to other regions for cost-effective pools of talent, including Russia and Eastern Europe, Mexico, South America and "the rest of Asia."

Source: Taleo CorporationNews Release (November 8, 2011)

Australia: Clarius Group Reports Increase in Labor Participation by Older Workers

2011-11-07T09:40:00.019-05:00

In its quarterly skills survey for the September 2011 quarter, the Clarius Group, while noting that the overall index fell in the quarter, also noted the aging demographic of the Australian workforce--the percentage of the labor force aged between 55-56 had increased to 13.8%, compared with 8.3% in 1998.

According to the report, "[b]alancing this exodus of older workers is the fact that an increasing number are staying because of higher life expectancy, improved health, and hopefully, because they enjoy working life." Furthermore, while many businesses are already targeting keeping the older workers, more initiatives are needed to sustain this development. The report also finds that "the older staff members want very much the same working structure as the youngest—-flexibility and challenges."

Clarius Group identifies three skills areas as being among the key skills the labor market will lose when this group of workers exit the labor force between 2017 and 2026: health, education, and engineering.

Source: Clarius Group Media Release (November 7, 2011)

Singapore: Age Friendly Workforce Asia Conference Opens with Study Showing Younger Workers Less Likely To Hire Older Workers

2011-11-03T20:59:00.000-04:00

At the "Age Friendly Workforce Asia 2011" conference held in Singapore November 3 and 4, the Tripartite Alliance for Fair Employment Practices (TAFEP) announced the results of a study seeking to identify common factors that differentiate successful mature job-seekers from those who were unsuccessful. According to Ong Dai Lin, writing for TODAY, the study found that "[a] job-seeker above 40 stands a lower chance of snagging a job if he is interviewed by a panel of younger people. In contrast, his chances are substantially higher if the interviewers included people of similar age or those who are older."

Specifically, the likelihood of mature job-seekers getting and keeping the job jumped from 56.6% to 69.2% when they are faced with a mixed panel of young and old interviewers, instead of a panel comprising just younger people. In addition, the survey found that employability of mature workers increased when they are tech-savvy.

According to the conference sponsors, senior level decision makers came together to exchange ideas on business sustainability and lifelong employability: 400 CEOs and HR Directors "are revolutionising attitudes and harnessing new strategies towards an ageing workforce--the urgent reality of a greying phenomenon that is sweeping across Asia."

Also from TODAY:

Minister of State (Manpower) Tan Chuan-Jin felt that the study had "two key findings": One, diversifying the age composition of the recruitment selection panel increases a mature job seeker's chances. Two, the provision of flexible work arrangements helps widen the pool of mature job seekers.

Source: TODAY Online "Younger interviewers 'less likely to hire those above 40'" (November 4, 2011)

Australia: Minister Announces Removal of Age Limits on Superannuation

2011-11-02T21:19:00.014-04:00

While announcing the introduction of superannuation guarantee rate legislation boosting the superannuation savings of Australians, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, also announced the decision that there will be no age limit for superannuation guarantee contributions, effective July 1, 2013.

Scrapping the age limit had been a major goal of National Seniors.

Source: Minister for Financial Services and Superannuation Press Release (November 2, 2011)

Study: Employers with Older Employees, More Full-time Workers More Likely To Provide Pensions

2011-11-01T20:48:00.028-04:00

A study issued by the Investment Company Institute reports that companies with an older, higher-earning workforce are more likely to offer retirement plans than those with younger, lower-income employees. According to "Who Gets Retirement Plans and Why, 2010," workers at small employers that sponsor retirement plans are as likely to participate as workers at large employers sponsoring retirement plans.

In addition, the study shows that 39% of workers aged 21 to 29 worked
for employers that sponsored retirement plans in 2010, compared to 57% of workers aged 55 to 64. Similarly, 23% of workers in the lowest quintile of annual earnings ($14,000 or less) worked for employers with retirement plans, compared with 74% of workers in the highest quintile ($60,000 or more. "Employees also were more likely to report that they worked for an employer that sponsored a plan if they were more fully engaged in the workforce."

Source: Investment Company Institute News Release (October 31, 2011)

United Kingdom: Survey Finds 6% of Workers Think They Can Never Afford To Retire

2011-10-31T08:40:00.019-04:00

A survey conducted by Standard Life finds that over three quarters of a million 45-65 year olds in the United Kingdom say they don't think they will ever retire. While 6% of 45-65s who aren't retired don't think they will ever retire, 21% 1 of 45-65 year olds who have financial plans in place to provide for their long term future no longer feel their plans will support them due to the current economic climate.

On the other side of the equation, 16% of 45-65s who have financial plans in place to provide for their long term future feel confident, and a further 48% of 45-65s feel reasonably confident their financial plans will support their long-term future. Altogether, 72% of 45-65s who aren't retired plan to retire between the ages of 61 and 70 years old.

Source: Standard Life Press Release (October 28, 2011)

Canada: Study Finds that Delayed Retirement Has Become a Trend

2011-10-27T09:28:00.000-04:00

A study by Statistics Canada finds that older workers have been increasingly delaying their retirement since the mid-1990s. This is consistent with the increase in the employment rate of older Canadians that began about the same time. Thus, a 50-year-old worker in 2008 could expect to stay in the labour force 3.5 years longer than in the mid-1990.

In an article--"Delayed retirement: A new trend?" by Yves Carrière and Diane Galarneau--published in Perspectives on Labour and Income (Vol. 23, no. 4), the authors conclude that:

Delayed retirement could alleviate some of the economic challenges of population aging. However, hours of work must be considered, since a drop in average weekly hours could partly offset the impact of an increased expected work life on annual hours and economic growth. In fact, the average work week for those 55 and over in 2010 was indeed 1 hour shorter than in 1997.

Source: Statistics Canada The Daily (October 26, 2011)

Netherlands: Government Introduces Bill To Facilitate Work after Age 65

2011-10-27T09:17:00.000-04:00

The Dutch Social Affairs Minister, Henk Kamp, has introduced legislation designed to make it easier to work beyond the age of 65. Under the draft bill, employers will be allowed to extend temporary employment contracts for older workers beyond the current limit of two renewals.

Those over 65 will not be entitled to sick pay and employers will not have to take special steps to reintegrate them after sick leave. From 2013, employees will also be able to postpone their state pension for up to five years and receive a pension bonus of 6.5% for each year that they exceed the normal retirement age.

The bill is part of the agreements worked out by the Cabinet in June in the pension agreement made with employers and employees.

Source: Rijksoverheid (October 12, 2011)