1. Is Retirement Obsolete?
Controversy 10
Is Retirement Obsolete?

2. Is Retirement Obsolete?
The 20th century could be called the “age of retirement”
After World War II, there was a consistent decline in labor force participation with advancing age in all industrialized countries
For society, the decline in labor force participation represents a loss of productivity by older people, for several reasons:
People are now living longer
People are better educated
People are in better health than ever before

3. History of Retirement
Widespread retirement by workers only became possible after the industrial revolution of the 19th century
Prussian Chancellor Otto von Bismarck first introduced the age of 65 as the basis for pension
According to statistics:
The overwhelming majority of both men and women are retired from the labor force after the age of 65
Older men tend to move away from work and toward retirement

4. History of Retirement (cont.)
Retirement is not usually a negative event
Leisure can be viewed as either a negative time away from work, or a positive experience of free time
However, retirement as a time of leisure is only possible with a certain degree of wealth
With longer lives, people have spent more time in education, work, and retirement

5. Changes in the American Economy
A new postindustrial economy shaped by information technology and global competition has reshaped American society
Large companies can no longer guarantee employment or a predictable work life based on patterns in the past
For organizations, corporate downsizing often means a loss of older employees’ experience and skills
The volatility of the labor market today is more difficult for older workers to cope with than for younger workers
Today 86% of eligible workers participate in some type of retirement contribution plan

6. A New View of Retirement
On the negative side, the practice of retirement comes with large hidden costs
Funding required for pensions and retirement systems, and loss of accumulated skills and talents
On the positive side, the availability of retirement has meant expanded leisure and opportunities for self-fulfillment in later life
More time for personal development and volunteer service to others
Age Discrimination Act (1967) – forbids older workers from being limited or treated in any way that would harm their employment possibilities

7. Productive Aging People over age 65 are productive in many ways
Three-quarters of older people are engaged in unpaid work such as housework or volunteer roles
The total value of their contribution to society equals nearly 12 million full-time workers, and equals 7 million workers in caregiving alone
More older people are volunteering today than a generation ago
Plasticity – the potential for retraining
The discovery method of training – trainees discover for themselves how to carry out a task to be learned
Very effective with older workers