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Designing the Age Friendly Workpla ce 1 The Aging Workforce: What It Is and Why It’s Happening
Designing the Age Friendly Workplace
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The Aging Workforce:What It Is and Why It’s Happening
Designing the Age Friendly Workplace
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Retirement Patterns Over Time:Retirement Is Becoming Less Common
Source: U.S. Bureau of Labor Statistics
5
10
15
20
25
30
1948 1958 1968 1978 1989 1999
Perc
en
t of
Pop
ula
tion
65+
In
th
e L
ab
or
Forc
eP
erc
en
t of
Pop
ula
tion
65+
In
th
e L
ab
or
Forc
e
Labor Force Participation Rate of Workers 65+, 1948-2007
Designing the Age Friendly Workplace
3
Key PointsThe Aging Workforce
• There will be more older workers on the job than at any point in history
• Many baby boomers will be eligible to retire soon but they won’t
• Having more older workers will affect your organization
• Older Workforce vs. Aging Workforce
Designing the Age Friendly Workplace
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The Aging Workforce:Why It’s Happening
• We Need Older Workers
• Older Workers Need and Want to Work
• Social Security Needs Help
Designing the Age Friendly Workplace
5
-50,000
50,000
150,000
250,000
0-45-9 10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
Supply and Demand:Baby Boom, Baby Bust
Source: WA Office of Financial Management
Nu
mb
er
of
Peop
le
Change in Population by Age Group, 2005-2025
Designing the Age Friendly Workplace
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Potential Labor Shortage? Baby Boomers Reaching Retirement
Year
1,5001,7001,9002,1002,3002,5002,7002,900
2000 2005 2010 2015 2020
Projected shortage of over 1,000,000 nurses in 2020
FTE’s
(T
hou
san
ds) Projected RN
Demand
Projected RN Supply
National Supply and Demand Projections for RNs
What Is Behind HRSA’s Projected Supply, Demand, and Shortage of Registered Nurses?National Center For Health Workforce Analysis, Bureau of Health ProfessionsHealth Resources and Services Administration. (2004).
Designing the Age Friendly Workplace
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Potential Labor Shortage? Baby Boomers Reaching Retirement
By 2010, as many as 60 percent of today’s experienced utility workers will retire.
Who will do the work?
Source: IBEW Journal, April 2005
Designing the Age Friendly Workplace
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Filling Vacancies:Four Ways We Will Avoid a Crisis
• Immigration• Automation• Outsourcing• Retaining older workers
– Have skills and experience to get the job done
– Need (and may want) to work
Politics?
Cost?
Feasible?
Designing the Age Friendly Workplace
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Older Workers Need to Work:Insufficient Savings
0
10
20
30
40
50
1992-93 1996-97 2000 2007
Defined ContributionDefined Benefit
Perc
en
tag
e o
f W
ork
ers
Perc
en
tag
e o
f W
ork
ers
Source: U.S. Bureau of Labor Statistics
Designing the Age Friendly Workplace
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$0$200$400$600
$800$1,000$1,200$1,400
$1,600
Avg Annual Out of Pocket
Costs in US, 2003
<18 19-64 65
Age Group
Older Workers Need to Work:Average Out of Pocket Costs for Health Care
Source: Out of Pocket Health Care ExpensesBy Age and Insurance Coverage, 2003Agency for Healthcare Research and Quality
Designing the Age Friendly Workplace
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Older Workers Want to WorkTop Three Reasons for Working During Retirement
1. Need the money (61%)2. A desire to stay mentally active (54%)3. The need for health benefits (52%)
Brown, S.K. (March 2005). Attitudes of individuals 50 and older toward phased retirement. Washington, DC: AARP Knowledge Management. Retrieved on 7-23-
2009
Designing the Age Friendly Workplace
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0
10
20
30
40
50
1960 1980 2000 2040 2060 2080
1 old / 5 young
1 old / 2.5 young
Social Security Needs Help:The Old-Age Dependency Ratio
Source: Stephen Goss, Chief Actuary Social Security Administration
Presentation to Senate Finance Committee 2/2/2005Rati
o o
f P
eop
le 6
5+
to P
eop
le 1
8-6
4,
%R
ati
o o
f P
eop
le 6
5+
to P
eop
le 1
8-6
4,
%
From The Daily Olympian, 9/2/2007 and 9/3/2007
Designing the Age Friendly Workplace
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The Aging Workforce:Review
• There will be more older workers on the job than at any point in history– We need older workers to get the job done– Older workers need and want to work– Social Security needs help
• Older Workforce vs. Aging Workforce• It’s time to prepare for both!
