Older workers will usher in new patterns of working and retirement according to two new reports released by The Center on Aging and Work/Workplace Flexibility and Families and Work Institute.
Context Matters: Insights about Older Workers from the National Study of the Changing Workforce and The Diverse Employment Experiences of Older Men and Women in the Workforce were released in Washington, D.C., today to coincide with the White House Conference on Aging which will make recommendations to Congress and the President about issues facing the aging workforce.
The pair of research highlights, based on data from the Families and Work Institute’s National Study of the Changing Workforce, is one of the most comprehensive analyses to date of the demographics and working situations of older workers, defined as workers 50 years-of-age or older. The reports reveal the work preferences of older workers as well as how they perceive the workplace of the future.
“The Baby Boomer Generation has always approached life differently,” says Ellen Galinsky, president and co-founder of Families and Work Institute. “In 2006, Boomers will begin turning 60 years-old, and they will likely change what we know about aging and retirement in America. For example, we know that Baby Boomers are more likely to be work-centric than other generations and the majority of older workers do not want to reduce their job responsibilities, but rather want to keep the same level of responsibilities in the future.”
The first report, Context Matters: Insights about Older Workers from the National Study of the Changing Workforce, found that older workers are more likely to continue working when they have more control over their work hours, workplace flexibility, job autonomy and learning opportunities. Other key findings include:
- Older workers have higher rates of self-employment and small business ownership than do younger workers.
- More than one out of four (26%) wage and salaried employees, particularly younger employees (43% of workers under 30), plan to “be their own boss,” which strongly suggests that today’s employers need to devote serious attention to creating work environments that embody some of the important positive characteristics of self employment and business ownership, such as control over hours, workplace flexibility, learning opportunities and job autonomy.
The second report reveals the differences between older men and women in the workforce. For instance, the report found that older women earn only 55 cents for every dollar that men earn from all hours worked at all jobs. When comparing hourly rates of pay at main jobs (with salaries converted to hourly rates), older women earn 69 cents for every dollar older men earn.
“Women workers over the age of 50 are at a distinct disadvantage to older men workers and, in many cases, the challenges get worse over time,” says Marcie Pitt-Catsouphes, Ph.D., co-director of the Center on Aging & Work at Boston College. “Policy makers need to consider options that will minimize the impact of these disadvantages so women’s transitions into retirement won’t be jeopardized.”
Other key findings from The Diverse Employment Experiences of Men and Women Older Workers include:
- On average, the family income of older women in the workforce was $64,444 in 2002 compared to the $80,839 family income of older men.
- Older men (80%) are more likely than women (62%) to be married or living with a partner, providing them with a potential source of social support.
- Older men employees are more likely than women to indicate that they are “very satisfied” with their family life (58% vs. 49%). Furthermore, older men have better mental health on average than older women, with 40% of men versus 26% of women experiencing good mental health.
The National Study of the Changing Workforce, released in 2002, surveys representative samples of the U.S. workforce every five years. Sample sizes average about 3,500, including both wage and salaried employees and self-employed workers. These highlights are the first of several planned reports drawing on this rich data set. The National Study of the Changing Workforce is funded by the Alfred P. Sloan Foundation, the IBM Corporation, Johnson & Johnson, Motorola, Inc., The Ford Foundation, KPMG LLP, Ceridian Corporation, Citigroup Inc., Xerox Corporation and Salt River Project.
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