Controversy 10

1
Controversy 10

• Is Retirement Obsolete?

2
Is Retirement Obsolete?

• The 20th century could be called the age of
  retirement
• After World War II, there was a consistent
  decline in labor force participation with
  advancing age in all industrialized countries
• For society, the decline in labor force
  participation represents a loss of productivity
  by older people, for several reasons
• People are now living longer
• People are better educated
• People are in better health than ever before

3
History of Retirement

• Widespread retirement by workers only became
  possible after the industrial revolution of the
  19th century
• Prussian Chancellor Otto von Bismarck first
  introduced the age of 65 as the basis for pension
• According to statistics
• The overwhelming majority of both men and women
  are retired from the labor force after the age of
  65
• Older men tend to move away from work and toward
  retirement

4
History of Retirement (cont.)

• Retirement is not usually a negative event
• Leisure can be viewed as either a negative time
  away from work, or a positive experience of free
  time
• However, retirement as a time of leisure is only
  possible with a certain degree of wealth
• With longer lives, people have spent more time in
  education, work, and retirement

5
Changes in the American Economy

• A new postindustrial economy shaped by
  information technology and global competition has
  reshaped American society
• Large companies can no longer guarantee
  employment or a predictable work life based on
  patterns in the past
• For organizations, corporate downsizing often
  means a loss of older employees experience and
  skills
• The volatility of the labor market today is more
  difficult for older workers to cope with than for
  younger workers
• Today 86 of eligible workers participate in some
  type of retirement contribution plan

6
A New View of Retirement

• On the negative side, the practice of retirement
  comes with large hidden costs
• Funding required for pensions and retirement
  systems, and loss of accumulated skills and
  talents
• On the positive side, the availability of
  retirement has meant expanded leisure and
  opportunities for self-fulfillment in later life
• More time for personal development and volunteer
  service to others
• Age Discrimination Act (1967) forbids older
  workers from being limited or treated in any way
  that would harm their employment possibilities

7
Productive Aging

• People over age 65 are productive in many ways
• Three-quarters of older people are engaged in
  unpaid work such as housework or volunteer roles
• The total value of their contribution to society
  equals nearly 12 million full-time workers, and
  equals 7 million workers in caregiving alone
• More older people are volunteering today than a
  generation ago
• Plasticity the potential for retraining
• The discovery method of training trainees
  discover for themselves how to carry out a task
  to be learned
• Very effective with older workers