1. Productive Ageing Forum
The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia
Jacqueline M. Drew & Michael E. Drew
School of Economics and Finance
Faculty of Business
Queensland University of Technology
Thursday, 17th May, 2007
Productive Ageing Forum

2. 1. Aims of the Study
The current study examines the participation and phased retirement decisions of mature-aged workers in the Australian labour market. Despite increasing interest in understanding the factors involved in the decision of mature-aged workers (defined in this study as workers 50+ years of age) to participate or withdraw from the labour market, a number of key questions remain unanswered.
The specific aims of the current study are captured within the following three research questions:
To identify how to increase the participation of mature-aged workers in the labour market;
To identify barriers to participation; and,
To identify the costs and benefits, price and non-price, to engaging mature-aged workers from the perspective of the employee (supply-side) and employer (demand-side).

3. SEM 1: Participation Pre-retire income Source of current income
Pre-retire income satisfaction
Pre-retire economic well-being
Planning for retirement
Organisational programs
Stereotypes of older workers
Organisational commitment
Job satisfaction
Work centrality
Attitudes towards retirement
Pre-retire health status
1. Multiple Group SEM of Participation
(Not-retired/retired)
Economic
Psychological
Male/Female
Age cohorts

4. SEM 2: Phased Retirement
Voluntariness of retirement
Post-retire. econ. well-being
Pre-retirement prep. outcomes
Spousal relationships
Retirement concerns
Satisfaction with retirement
Retirement Adjustment
Post-retirement health status
Economic
2. SEM of Phased Retirement
(Retired only)
Psychological
Male/Female
The SEMs are estimated with EQS Version 6.1, using maximum likelihood as the estimation method.
Age cohorts

5. 4. Methodology
The current study involved two key phases of data collection.
Data was collected from a large sample of individual respondents, with a target population of individuals aged between 50 and 65 years of age
3,000 surveyed, response rate 31%
The second phase involved a sample of government and non-government organisations operating on a state, national and international basis
60 surveyed, response rate 68%

6. 17 Key Findings
Inverse relationship between economic well-being and participation
Participation, policy distortions and the replacement ratio
Job search strategies and participation
Consumer preferences, participation and psychology
The positive relationship between stereotypes and participation
The positive relationship between organisational programs and participation
Targeted strategies for female mature-aged workers and participation
The barrier of economic status

7. Emphasis on financial planning for retirement as a barrier
Stereotypes and the barrier of perception
Employment type barriers to phased retirement
Recruitment barriers for mature-aged workers
Organisational benefit of implementing mature-aged worker programs
Program costing and administration
Managing higher employment costs of mature-aged workers
Individual economic well-being as a benefit
Individual benefits related to psychological well-being

8. Multiple Group Model of Mature-aged Worker Participation for the Not Retired/Retired Group – Final Model
Pre -
Retirement Health
Status
Stereotypes of Older
Workers
Retirement
Economic
Well
Being
Attitudes to Retirement
Org Programs for Older
Personal
Organisational
Attitudes
Commitment
Job
Satisfaction
Work
Centrality
Plans for Retirement
0.15*/0.13*
0.20*/0.18*
0.77*/0.78*
0.73*/0.71*
0.78*/0.74*
0.06*/0.09*
0.02/0.17*
0.17*/0.17*
0.07*/
0.08*
0.36*/
0.34*
Not Retired Beta Weight/
Retired Beta Weights
Greater concerns with economic
well
being is predictive of less positive
attitudes to retirement
More positive org attitudes are
predictive of less positive
More positive stereotypes are predictive
of more positive org attitudes
Greater availability of org
Progarms
is predictive of more
Positive personal org attitudes
of more positive attitudes to retirement (retired
grp
only)
Programs

9. Full Model of the Phased Retirement Process for the Retired Group – Final Model
Pre -
Retirement Health
Status
Plans for Retirement
Stereotypes of Older
Workers
Retirement
Economic
Well
Being
Post
Attitudes to Retirement
Org Programs for Older
Personal
Organisational
Attitudes
Commitment
Job
Satisfaction
Work
Centrality
Concerns
Spousal
Relationships
Prep. Outcomes
Adjustment
Satisfaction with
Voluntariness of
0.18*
0.19*
0.78*
0.69*
0.73*
0.75*
0.11*
0.14*
0.08
0.00
0.05
0.30*
0.25*
0.21*
0.79*
0.06
0.17*
0.29*
0.10
0.04
0.24*
0.28*
0.82*
0.90*
0.42*
0.68*

10. Acknowledgements
This study was made possible by the financial support from the National Seniors Productive Ageing Centre (NSPAC) and the Queensland University of Technology (QUT). The contribution of the Australian Government, Department of Health and Ageing (DHA) is also gratefully acknowledged.
We thank Peter Cassematis (Griffith University, GU) and Robert Bianchi (QUT) for invaluable research assistance throughout the project and Dr Stephen Cox (QUT) for technical advice.
We acknowledge the contribution of members of the Project Steering Committee (and NSPAC Research Advisory Committee members), David Deans and Lyn Moorfoot (National Seniors, NS), members of the NSPAC Research Advisory Committee, Professor Margaret Steinberg AM (Chair) (QUT), Kevin Vassarotti (DHA) and Don Maconachie (University of the Sunshine Coast, USC). The research has also benefited from discussions with Professor Philip Taylor (University of Cambridge) and Professor Allan Layton (QUT).
We thank Juanita Mottram and colleagues (NS) for assistance in the collation of the survey responses and the team of fifteen data entry assistants (honours and doctoral students) from the School of Economics and Finance (QUT) for their efforts.
Finally, and most importantly, we thank those individuals (members of the NS) and organisations throughout Australia that generously gave of their time to participate in the study.
The opinions expressed are those of the authors and are not necessarily held by the DHA, GU, NS, NSPAC, QUT or USC. Any remaining errors are also the authors’ responsibility.
Drew, Jacqueline M., and Michael E. Drew, 2005, The Process of Participation and Phased Retirement: Evidence from Mature Aged Workers in Australia, Brisbane: Post Pressed, [ISBN ].