International Comparisons
The Nature of Work in the 21st Century: Employment in Later Life - Policies and Practices
Speech
March 2004
A
Balancing Act: Achieving Adequacy and Sustainability in
Retirement Income Reform
Brussels, Belgium
Ladies and gentlemen:
It is, perhaps, ironic that we gather in an ancient city with a much-storied past to discuss some of the most pressing challenges of the future. By the middle of this century, 2050, there will be 2 billion older persons in the world, compared to 600 million today. Every month, approximately 1 million persons reach 60 years of age.
Without question, the rapidly increasing numbers of older citizens will present our nations and their governments with enormous new social and economic challenges.
Nevertheless, many policymakers, in the U.S. and here in Europe, are still reluctant to address some of these challenges.
In fact, some are even moving backwards ― they are enacting measures such as cuts in levels of social spending, health care, and pensions. We must face the reality that public resources in most nations are already under immense strain. The prospects for adequate and sustainable retirement income security for our rising populations of older people are being placed in serious jeopardy.
Last month, as part of AARP’s State of 50+ America series of reports, we released the first annual "AARP Quality of Life Index" of Americans aged 50 and above. It shows that people aged 50 to 64 ― most of whom are still employed ― improved on every economic measure over the past decade. But while those 65 and over improved on many measures, their share of income from sources other than Social Security declined, and their employment rate also decreased. And the picture for Americans 50 and over is more negative when the focus is on the past 2 or 3 years. Both age groups have suffered financial setbacks.
Employing older persons can ― and must ― become a significant factor in the adequacy and sustainability of retirement income for our older citizens. Utilizing older workers can ease pressure on public pension and other systems, and help sustain or grow the tax base. The 50-plus population of the world offers significant potential as both a production power as an employee force, and as a purchasing power as a consumer force.
So we must find more ways to give our older citizens who want to continue working the chance to do so. This will require us to broaden our bases of support and to augment public resources with private initiatives. Here is where non-governmental organizations (NGOs) can make a major contribution.
Make no mistake about it. NGOs will play a vital role in the 21st century. We must be the agents of societal change. We must be the voices of older persons. It will be our highest purpose and greatest responsibility.
In the United States, AARP’s role approximates that of what you call a “social partner” here in Europe. We work hand-in-hand with our national government and with our local governments. And by partnering with businesses, foundations, civic and professional associations, and other NGOs, we believe we can achieve considerable progress toward meeting the needs, enriching the lives, and empowering older Americans.
In addition, we have found that organizations that traditionally have not been associated with aging issues, such as educational institutions and labor organizations, can be valuable resources and partners.
Efforts to expand opportunities for older workers must include discussions of how companies can eliminate compulsory retirement ages for their employees. It is now illegal in the U.S. ― and a new EU mandate could soon prohibit it. But the EU mandate is subject to interpretation by member states, and this will be a major test for Europe’s approach to older workers.
Plans relating to older workers should also involve workplace initiatives, such as phased retirement and flexible working opportunities, and training programs so that employees can increase the skills their employers need.
Let me offer some examples of what AARP is doing:
Three years ago, we launched our Best Employers for Workers over 50 program which identifies, highlights, and honors exemplary policies and practices of businesses toward workers 50 and over. The competition focuses on business policies and practices to support and encourage older workers. An outside group of experts on aging workforce issues assisted in the development of the criteria. A research consulting firm analyzes the individual applications and recommends the top choices. Companies with 50 or more employees are eligible to apply.
Employers who are chosen to be AARP's Best Employers for Workers Over 50 are recognized in a variety of national media outlets, including well-known business publications and radio and television venues. These employers also are invited to attend an awards dinner held in their honor. Through this positive publicity, all honored employers gain a powerful asset in their employee recruitment campaigns. And it provides other employers with an opportunity to see how beneficial such policies and practices can be.
Less than a month ago AARP and Home Depot, the world’s largest home improvement retailer, announced a National Hiring Partnership to attract, motivate and retain eligible older workers as part-time and full-time employees in their nearly 2,000 stores. AARP’s Foundation is the largest contract administrator of the U.S. Department of Labor’s Senior Community Service Employment Program (SCSEP).
In local communities, AARP’s SCSEP Project Directors will coordinate with Home Depot stores to identify qualified applicants for specific hiring needs. They will thoroughly assess each candidate’s skills and interests, as well as give them detailed instructions on Home Depot's application process. This is an outstanding example of how business, government, and an NGO can work together as partners.
A crucial step for all of us is to eliminate age discrimination, particularly in employment.
AARP has a long history of being a major player – often the only significant player in the United States – on the issue of age discrimination. The United States' Age Discrimination in Employment Act (ADEA) has been in place for over 36 years and mandatory retirement in the U.S. has been virtually eliminated. I regret to say, however, that age discrimination in employment remains a formidable barrier to employing older workers. In fact, charges of age discrimination filed with the U.S. Equal Employment Opportunity Commission (EEOC) have increased 41 percent since 1999.
AARP has provided consultations to European Union governments and continues to counsel EU NGOs on the development of age discriminations laws as mandated by the Anti-Discrimination Directive. But laws are just the beginning. Perhaps the most significant point we try to convey to other countries is that even a good law is not a panacea for ridding the work force of age discrimination. There must be adequate enforcement.
The truth of the matter is simply that age discrimination will not go away in any part of the world until employers, employees, the courts, and our societies in general accept the premise that individuals have the right to remain productive members of society and to be judged on their ability and not their age.
Our mission at AARP is to improve life for people as they get older—both in the U.S. and internationally — so they can live long, healthy, secure and productive lives. To do this, we are reaching beyond our borders to engage leaders in other countries to address policy challenges…and to help find solutions. I am convinced that we can contribute to the debate on these questions from our own experiences at home…and that we can learn much from others, as well.
Many times throughout the last millennium, the city of Brussels and its people have borne the consequences of man’s failure to manage successfully the challenges of the their times. Let us dedicate ourselves to do all we can to ensure that our nations and our peoples are never forced to endure the consequences of our failure to manage successfully the challenges of global aging.
Thank you.