Older workers today are changing the concept of
retirement as they live longer and work well past traditional retirement age –
some even returning to the workforce after they "retire" and/or opting for
"portfolios" of paid and volunteer positions, according a new MetLife Mature
Market Institute(R) study, Living Longer, Working Longer: The Changing Landscape
of the Aging Workforce, conducted by David DeLong & Associates, Inc. and Zogby
International. Unlike other industry studies which have offered predictions of
the aging Baby Boomers’ retirement expectations, the MetLife "Living Longer,
Working Longer" study examines the actual work experiences of employees age
55-70. The study findings were unveiled today at a symposium hosted by MetLife
and the International Longevity Center-USA.
"Today, older workers view retirement as a desirable state, not a particular
date," said Dr. David DeLong, author of Lost Knowledge: Confronting the Threat
of an Aging Workforce and a research fellow at the MIT AgeLab. "When we
conducted the study, we found that mature workers are struggling to balance the
conflicting pressures of income security, post-retirement-age employment and,
often, age discrimination – perceived or real – as they look for a sense of
security and meaning during their ‘retirement’ years."
The study found that 78% of respondents age 55-59 are working or looking for
work, as are 60% of 60-65 year-olds and 37% of 66-70 year-olds. Across all three
age groups, roughly 15% of workers have actually accepted retirement benefits
from a previous employer, and then chose to return to work (or are seeking work).
These employees, who have become known as the "Working Retired," represent 11%
of 55-59 year-olds, 16% of 60-65 year-olds and 19% of 66-70 year-olds.
Motivations for Work
Employee motives for returning to and/or remaining in the workplace differ
significantly by age. Among workers age 55-59, economic incentives take
precedence, with 72% of employees in this age bracket citing "need income to
live on" as a primary reason for working. Economic incentives were also the
number one motive cited by 60-65 year-olds (60%), followed by a desire to "stay
active and engaged" (54%) and "do meaningful work" (43%). Among 66-70 year-olds,
however, 72% of employees cited the desire to "stay active and engaged" as a
primary reason to work, followed by "the opportunity to do meaningful work"
(47%) and "social interaction with colleagues" (42%).
Redefining Retirement
The MetLife study found that retirement isn’t necessarily defined by an
employee’s age or work status. When asked what retirement means, many
respondents indicated "freedom from the demands of work" (26%), followed by
"more control over one’s personal time" (24%) and "limited financial concerns"
(21%). Another 12% of respondents identified "the ability to pursue other
opportunities" as their definition of retirement.
"As organizations seek to attract and retain older workers, they must be careful
not to lump all ‘older workers’ into the same category – it’s important to
differentiate the work experiences and motivations of these employees. While
some may be working for financial reasons, others place a special premium on
feeling engaged and doing work that means something," says Sandra Timmermann, Ed.D.,
gerontologist and director of the MetLife Mature Market Institute. "Recruiting
and retaining older workers requires careful consideration of job design, work
environment, and creating new and challenging opportunities."
"Working Retired" on a Quest for Meaning
Among the Working Retired – i.e., employees who are receiving retirement
benefits and subsequently returned to work – the quest for meaning is one of the
major forces drawing them back into the workplace. Among Working Retireds age
60-65, the number one reason cited for taking retirement benefits was "wanted to
try something new and different" (20%). This option was cited much less
frequently by 55-59 year-olds (12%) and by 66-70 year-olds (7%), suggesting that
workers in their early sixties, who may be in a transitional period between
full-time work and retirement, are particularly eager for new experiences and
challenges.
"Becoming self-employed or starting a business" was another common reason for
taking retirement benefits – cited by 19% of 66-70 year-olds, 7% of 60-65
year-olds and 8% of 55-59 year-olds. Overall, some 28% of respondents age 55-59
listed themselves as "self-employed or business owner," exceeded only by 34% who
reported working for a "private sector business." More than one-third (36%) of
60-65 year-olds and 42% of 66-70 year-olds report being self-employed or
business owners.
"Clearly, these findings suggest there are conditions in the job market and in
older workers’ desire for autonomy and flexibility that make self-employment an
attractive option for those in their late sixties," said Dr. DeLong. "As the
oldest Boomers turn 60 in 2006, their desire for autonomy and trying new things
could portend a significant wave of departures in the next five years. Employers
will need to identify ways to retain the valuable knowledge of these workers."
Financial Reality Sinks In
While aging workers crave autonomy and flexibility, financial necessity is
driving many older employees to work, whether on a part-time, full-time or
self-employed basis. A significant portion (18%) of Baby Boom workers age 55-59
report that they expect to have no access to retirement benefits (e.g., pension,
401(k), SEP) when they stop working and are likely to feel compelled to work
well past traditional retirement age. About 14% of workers age 60-65 and 10% of
workers age 66-70 expect to receive nothing but Social Security when they
finally stop working.
"Retirement experts have been predicting for years the serious repercussions
that will arise as Baby Boomers’ lack of retirement assets collides with their
increased longevity to create widespread economic hardship. The rational
solution – to continue working full-time beyond traditional retirement age – is
at odds with many Boomers’ interests, values and priorities for their
retirement," notes Dr. Timmermann.
Among the other key survey findings:
— Help Not Always Wanted: In addition to the financial pressures, many aging
workers face an additional barrier to workplace fulfillment: the perception of
age bias. When asked about unsuccessful job searches, older workers most
frequently gave reasons suggesting or implying "age bias." Employees age 55-59
blamed "age bias" 39% of the time, while 60-65 year-olds and 66-70 year-olds
identified bias as a barrier 42% and 60% of the time, respectively.
— Part-Time Preferred as Workers Age: Of those still in the workplace, about
76% of 55-59 year-olds work more than 35 hours a week, and only 39% of 66-70
year-olds work that much. Nearly four in 10 (39%) of those age 66-70 are working
fewer than 20 hours a week. Among those seeking work in this age group, 56%
wanted less than 20 hours per week.
— Portfolio Work: In interviews done for this study, some older workers talked
of their lives as taking on a "portfolio quality" – a mix of part-time work for
pay, volunteer work, and travel, along with more time for hobbies and family.
Supporting this portfolio metaphor, 25% of survey respondents across all age
groups currently earn income from more than one job. About 20% of those working
have two jobs, and another 4% have three jobs.
— Staying Put: Stereotypes to the contrary, only 15% of 66-70 year-olds moved
to warmer climates once they started receiving retirement benefits, while 21% of
60-65 year-olds and 28% of 55-59 year-olds chose to relocate. Among employees
who had access to retirement benefits when they were younger, relocation rates
are somewhat higher.
— A Healthy Aging Workforce? Approximately half of all respondents surveyed
characterize their health as excellent or very good – 49% of 66-70 year-olds,
52% of 60-65 year-olds and 54% of 55-59 year-olds. These findings indicate that
the aging workforce appears to be healthy enough to handle the physical demands
of work, at least for the foreseeable future.
The MetLife Living Longer, Working Longer Study was conducted for the MetLife
Mature Market Institute by David DeLong & Associates, Inc. and Zogby
International during the first quarter of 2006. The survey polled 2,719
respondents between the ages of 55-70. To supplement the survey data, a small
sample of additional interviews were conducted with people who fit the survey
profile, as well as with company managers responsible for workforce diversity
and experts in recruiting older workers.
The MetLife Mature Market Institute is MetLife’s information and policy resource
center on issues related to aging, retirement, long-term care and the mature
market. The Institute, staffed by gerontologists, provides research, training
and education, consultation and information to support MetLife, its corporate
customers and business partners.
MetLife, a subsidiary of MetLife, Inc. (NYSE: MET) is a leading provider of
insurance and other financial services to millions of individual and
institutional customers throughout the United States. Through its subsidiaries
and affiliates, MetLife, Inc. offers life insurance, annuities, automobile and
homeowner’s insurance and retail banking services to individuals, as well as
group insurance, reinsurance and retirement and savings products and services to
corporations and other institutions. Outside the U.S., the MetLife companies
have direct insurance operations in Asia Pacific, Latin America and Europe. For
more information, please visit www.metlife.com.
Contacts
MetLife
Toni Griffin, 727-862-7006
tgriffin2@metlife.com
or
Bliss P.R.
Donna McSorley/Lisa Karel
212-840-1661
donna@blisspr.com
lisa@blisspr.com
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