International Comparisons
Free to Age with Dignity and Purpose
Speech
January 2004
Jim Parkel, Former President AARP
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Parkel delivers remarks |
New Takanawa Hotel
Tokyo, Japan
Ladies and gentlemen, honored guests: Konichiwa. Greetings from AARP.
I am overjoyed to return to your country and to speak at this distinguished summit. I have been to Japan many times during my 32 years with the IBM Corporation. Most recently, I was here in 2001 to speak about the aging workforce.
Today I represent the largest aging organization in the United States and even the world. So I am honored by your invitation to participate in this summit. I will share with you some of the insights that AARP has gained over the years and I look forward to learning from your experiences.
The U.S. is clearly in the midst of the aging revolution. Many other nations, like Japan and Italy, have preceded us in this experience. However, AARP has had the good fortune to have been around since 1958. So while the U.S. is not as “old” as some nations, AARP has still developed a great deal of knowledge about aging. We’ve looked carefully at what needs to change in social, economic and policy arenas to adapt to demographic realities.
My focus this afternoon will be on three topics:
- older workers
- age discrimination, and
- volunteering
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As we move through the first half of this new century, all three of these subjects will play a critical role in nations around the world. And although I am speaking from a U.S. perspective, the information will certainly hold true in many countries.
First, older workers. The world is aging, and so are most countries’ work forces. In the United States, 40 percent of the work force will be older than 45 by the year 2006. By the end of this decade, 20 percent will be over 55. At that point, we will face critical shortages of qualified workers because the number of workers aged 25 to 44 will actually decline.
The future economy of my country will depend in large part on older workers because they will soon make up a greater percentage of the total workforce. So recruiting and retaining experienced and skilled older workers makes good business sense.
Given the demographics, you would think that retaining older workers and offering age-friendly benefits would be usual and customary practice for most employers. But sadly, most are doing little to adapt to accommodate and the aging workforce.
Most American businesses have not included older workers in their strategic thinking. Yet they will be absolutely critical to the success of American businesses, as well as the overall health of our economy.
The enormous jump in older workers in the States is caused by the post World War II baby boom generation - people born between 1946 and 1964. They have had a huge impact on America during every stage of their lives.
At 76 million strong, new schools had to be built and others renovated to accommodate them. Later, child care benefits were instituted in the workplace to accommodate baby boomer needs. Today, baby boomers represent a sizable portion of our workforce, and clearly will occupy a greater portion in the coming years.
Here’s an interesting point: Men and women who are approaching 65, our traditional retirement age, or who have reached retirement age, want to continue working well past 65. In fact, they want to keep working well into their 70s and 80s!
In 2002, AARP did a study that looked at the perspectives and needs of workers ages 45-74.
We found that they don’t necessarily want to continue in the same career, or with the same hours or even the same daily schedule. Many are trying new careers, consulting or working part-time, and starting their own businesses - just because they want to or for continuing health benefits.
Not very long ago, retirement usually meant that meaningful work ceased at the traditional retirement age of 65. Not anymore. People, especially in developed nations, are living longer and healthier lives, and that’s a good thing. But in the U.S., recent downturns in the stock market have dramatically reduced the size of once healthy portfolios. People who thought they could live comfortably on savings and stock market earnings can’t count on that anymore.
Baby boomers, as a whole, have a poor record of saving and investing. They will also be challenged to enter the traditional retirement years without earnings from employment.
AARP’s research shows that 8 out of 10 boomers plan to work, at least part-time. Only 16 percent say they don’t plan to work at all. Men and women who may have chosen to work past retirement age because they wanted to, now find they have to work in order to support themselves.
In the U.S., we have determined that there are four key pillars of retirement that make it possible for the majority of citizens to maintain economic security during their later years.
They are:
- Social Security
- Pensions and savings
- Earned income, and
- Health insurance
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With our economy in flux, earned income is more important than ever for many people.
Additionally, our Social Security system is gradually phasing-in an age increase to be eligible for full monthly benefits. Those born between 1938 and 1954 receive their benefits between ages 65 and 66 years and 10 months. Everyone born after 1960 receives full benefits at age 67. So, employment - with a health plan - will be equally important during the years prior to eligibility for pension benefits and Social Security.
Now, I mentioned that most businesses have not begun thinking strategically about maintaining older workers. But there are a few with a vision for the future, which places them ahead of the curve.
At AARP, we decided to recognize businesses with policies and practices that demonstrate how much they value older employees. So, since 2001, we have invited employers to submit applications for their companies to AARP’s Best Employers for Workers over 50 program. We rate companies on measures such as training opportunities, health benefit and pension plans, recruiting practices, and flexible work arrangements.
Some of these companies have been very creative and flexible in developing ways to phase employees into retirement - giving them time to explore opportunities and interests before retiring. For example, some employers will allow a worker to reduce the days or hours worked per week or to telecommute. Others have even arranged for employees to perform consultant duties or to be available to work on special projects after they retire.
It has been extremely rewarding to honor these companies. But we also hope that more employers will strive to be recognized as work sites that welcome mature employees. The experience and strong work ethic that skilled mature workers offer is priceless.
But far too often AARP is not honoring companies for their age friendly practices, but instead challenging them about their age discrimination practices. We stand against all forms of age discrimination. Through our staff attorneys and lobbyists, we work hard to make sure that age discrimination enforcement is taken seriously at the state and national levels.
Some of you may have participated in the Second World Assembly on Ageing in Madrid, Spain in 2002. AARP sponsored an event at the forum focused on age discrimination in employment. We hosted the event because the issue is a problem in many nations. You may also be aware that the European Union has directed all of its Member States to enact legislation prohibiting age discrimination in employment by 2006.
Age discrimination occurs when employers use age as a negative factor to make employment-related decisions. For example: denying training and promotions based on age; refusing to hire a job applicant based on age; choosing to retire an employee based on age.
Clearly, decisions of this nature should be based on an employee’s ability to perform, not on age. Age discrimination is often based on assumptions and stereotypes that are just plain wrong.
Many employers think older workers are less productive, more expensive, and more rigid and unwilling to learn than younger workers. But again, these are stereotypes that don’t reflect the truth.
Generally, older workers have better attendance than younger workers. They also show greater employer loyalty and commitment to quality. Those are qualities to prize in an employee. Yet when workers begin to look older, many employers become blind to those qualities in their mature employees.
In the U.S., the Age Discrimination in Employment Act - the A-D-E-A - is our primary defense against age discrimination. This act prohibits employers from arbitrarily discriminating against employees based on age. It also supports strategies to resolve problems between aging employees and their employers; protects employees and job applicants over age 40; and promotes employment of older people based on ability.
Anyone who believes they’ve been discriminated against on the job can take their complaint to the Equal Employment Opportunity Commission - a government watchdog organization for all types of employment discrimination issues.
My hope is that employers will begin to see the wisdom of treating all employees well - young, old, physically challenged, men, women, or culturally diverse. But as our workforce ages, it is particularly important for them to recognize the importance of retaining and hiring older workers, sooner rather than later.
Now, let’s talk about volunteering. That’s one of my favorite subjects. It’s also one of the best ways to keep working - you just don’t get paid. But you are still able to employ all the skills you’ve developed over a lifetime to benefit other people. That’s one of the best forms of payment you can receive.
I’ve been a volunteer for years. I started long before I retired and I wouldn’t think of giving it up. For example, before I joined AARP’s Board, I served on the Board of Directors of the American Graduate School of International Management and of Danbury Hospital in my home state of Connecticut. I was also a chairman for the Society of Human Resource Management.
As President of AARP, I work very hard at what I do, and so do all of my volunteer colleagues on AARP’s Board of Directors. We give our time because we believe in AARP. We are proud to represent an organization that’s focused on helping people over 50 reach their goals and dreams, and live with dignity and purpose as they age.
Across the country, AARP has some 160 thousand volunteers making a difference in the lives of others. Whether it’s directly through AARP-sponsored programs like our driver safety program, or partnering with other organizations like Big Brothers/Big Sisters - a youth mentoring program, our volunteers are making a huge difference.
As the baby boomers move closer to retirement age, we anticipate that even more people will make themselves available as volunteers - and not just for AARP.
Research shows that many boomers, particularly those in the paid workforce, are more likely to be episodic volunteers. They prefer to pick and choose activities that fit their schedules, rather than taking on a long-term regular commitment. We also anticipate that as people live longer, healthier lives, their volunteer careers will also continue longer.
AARP has made volunteering a priority, not just among our members, but also among employees. We’re expanding community service opportunities so employees can serve others, wherever they live in our nation.
AARP’s founder, Dr. Ethel Andrus, gave us the motto that we have carried since 1958 - “To serve, not to be served.” As a lifelong educator and lifelong learner, she lived out this motto. Today, it is still the very backbone of our organization.
Let me highlight just a few ways that AARP relies on its volunteers:
- to quickly mobilize and contact members of Congress by phone and through the mail to make our positions known.
- to lobby more effectively on issues that are important to AARP members, like nursing home reform, predatory lending practices, and affordable and accessible prescription medications.
- to provide thousands of hours of tutoring to children.
- to assist millions of citizens in preparing annual tax returns.
While people on the receiving end benefit from the services our volunteers provide, I know from experience that I benefit just as much, emotionally and spiritually.
It is said that, “It is better to give than to receive.” In the context of volunteering, there is no truer statement. Maybe it is because of our pioneering history that volunteering is so common in the U.S. There are certainly numerous instances in my country’s development when people had to rely on each other to survive. Whatever the reason, volunteering is firmly set in U.S. society.
Older Americans have demonstrated that they are excellent volunteers for many of the same reasons that we discussed regarding the workplace. And after all is said and done, no one wants to be overlooked after a lifetime of productivity. And why should they be?
If one has taken a lifetime to learn and to grow, then one has a lifetime of experience to share. Our societies must be willing to receive, with open arms, all that older people have to offer.