AARP SURVEY: 70 PERCENT OF OLDER WORKERS PLAN TO WORK INTO RETIREMENT YEARS

Source: AARP Press Center

October 20, 2008

Contact: David Nathan, AARP, 202-434-2560, dnathan@aarp.org

Washington, DC - An AARP survey, anticipating workplace trends that indicate eventual labor shortfalls, found that a whopping 70 percent of mature workers plan to work into what they view as their retirement years.

A need for money (27 percent) was the most common reason cited by workers when they were asked why they plan to work. The latest AARP “Work and Career Study”, which updates a 2002 study by the same name, also found a good number (21 percent) who attributed their decision to work in retirement to the fact that they enjoy working.

“Our study confirms that many mature workers are ready to work in some capacity in what used to be called the retirement years,” said Deborah Russell, AARP’s director of workforce issues, in announcing the results of the study.

“Forward-looking companies which want to address the looming ‘brain drain’ by tapping the pool of experienced workers need to offer creative programs and policies to appeal to that group,” Russell added.

Russell’s comments are echoed in the “Work and Career Study”, also referred to as a “Staying Ahead of the Curve” report. (The complete report is available at www.aarp.org/staying_ahead.) It states flatly that an aging workforce means American businesses are “running out of time to prevent labor shortages, talent wars and knowledge loss.” For the ten-year period ending in 2016, the study cites federal government projections that the age 55-plus workforce will grow five times faster than the overall labor force.

In the survey, when asked to explain their main reason for working now, a full 64 percent of current workers said that current financial need, such as “need the money” or “need to support other family members,” drives their decision to be working. Another 11 percent cited reasons related to future financial security such as “to save more for retirement” as their main reason for working now.

Still, a sizable portion of the 1,500 workers ages 45 to 74 surveyed, 21 percent, reported that psychological or social fulfillment, including “enjoy the job or enjoy working,” was the main factor influencing their decision to be working now.

Half (51 percent) of those interviewed said they plan to work part-time in retirement, while just under three in ten (29 percent) do not plan to work. Another 11 percent plan to start their own business or work for themselves, and six percent plan to work full-time, the report said.

To assist businesses in attracting and retaining 50 plus workers, the “highlights and implications” section of the new report outlines a “Blueprint For Change” that focuses on creative policies utilized by progressive employers, some of them on the AARP list of “Best Employers for Workers Over 50” over the past few years.

They include:

• Flexible schedules and work arrangements. For example, Mercy Health Systems of Janesville, Wisconsin, allows ages 50 and over employees the option to work reduced hours, pool or work at home.

• Competitive health and other benefits. Even part-timers who work a minimum number of hours per week receive full medical benefits at Bon Secours Richmond Health System (Virginia), and the YMCA of Greater Rochester (New York), including vision and dental insurance.

• Restructure the job or the workplace to accommodate employees’ unique needs later in life. As an example, Brevard Public Schools in Viera, Florida, assists employees with special needs by providing telephones with amplified audio equipment, custom-ordered furniture, and large screen/print computer monitors.

• Recharge late-career workers with updated training. George Mason University in Fairfax, Virginia, partners with county and city governments to offer programs designed for the adult learner.

• Utilize knowledge retention strategies. At Baptist Health South Florida in Coral Gables, senior nurses who mentor junior colleagues receive financial incentives.

The report also recommended that employers use the AARP Workforce Assessment Tool to assess current workforce needs and to identify job functions most vulnerable to mass retirement. The tool, available at www.aarp.org/employerresourcecenter, is a free, online planning resource that companies can use to quickly gauge their exposure to potential skill shortages.

AARP collected the data for its study through a telephone survey by Synovate, Inc. of Falls Church, VA. The survey was conducted in April and May, 2007. The margin of error for the sample of 1,500 individuals who either were working or unemployed but looking for work is plus or minus 3 percent.

About AARP
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.