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Semelhante a 29Oct14 - Productive Ageing - Dr Ros Altmann
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29Oct14 - Productive Ageing - Dr Ros Altmann
- 1. ILC Global Alliance Robert Butler Memorial Lecture: Productive Ageing Wednesday 29th October 2014 This event is kindly supported by Pfizer and hosted by the LGA #ilcglobal alliance
- 2. Welcome Baroness Sally Greengross Chief Executive, ILC-UK Co President, ILC Global Alliance This event is kindly supported by Pfizer and hosted by the LGA #ilcglobal alliance
- 3. Productive Ageing Dr Ros Altmann Business Champion for Older Workers This event is kindly supported by Pfizer and hosted by the LGA #ilcglobal alliance
- 4. “PRODUCTIVE AGEING” ROBERT BUTLER MEMORIAL LECTURE ILC GLOBAL ALLIANCE Dr Ros Altmann Dr. Ros Altmann, CBE Business Champion for Older Workers 29 October 2014 Twitter: @rosaltmann Website: www.rosaltmann.com Blog: pensionsandsavings.com 4
- 5. ROBERT BUTLER His vision of productive ageing: work can continue to be rewarding in later life Excellent, though extreme, example: CEO of ILC USA worked 60 hours a week till age 83! ILC USA continued to benefit from his vast experience and knowledge 2006 report ‘Ageism in America’ highlighted age discrimination in the workplace Age discrimination is still a major barrier to productive ageing across the globe 5
- 6. PRODUCTIVE AGEING OR ECONOMIC DECLINE? Retirement ages lower than 1950s despite rising life expectancy and lower birth rate Sharp rise in labour force withdrawal from age 52 onwards Waste of resources Lower national income, lower national output, lower employment, lower growth Potential for significant economic boost from older workers Ageing could and should be far more productive 6
- 7. BUT LET’S NOT GO TOO FAR!
- 8. EARLY EXIT FROM LABOUR FORCE 8
- 9. WORK DETACHED FROM LONGEVITY 1950s – work:retirement years ratio 5:1 Now - work:retirement years ratio 2:1 9
- 10. UK LABOUR FORCE PARTICIPATION FALLS FROM 50 + Source: The missing million: illuminating the employment challenges of the over-50s 10
- 11. RETIREMENT LENGTH RISING THROUGHOUT OECD OECD average retirement increased by more than 50% since 1970 Men: average retirement lasts 22.5 years (7.5 years more than 1970) +50% Women: average retirement lasts 18 years (7 years more than 1970) +64% 90 85 80 75 70 65 60 55 Time in ret irement Ret irement age Minimum ret irement age Maximum ret irement age 15 years on average in 1970 22.5 years on average in 2012 1970 1975 1980 1985 1990 1995 2000 2005 2012 90 85 80 75 70 65 60 55 Time in ret irement Ret irement age Minimum ret irement age Maximum ret irement age 11 years on average in 1970 18 years on average in 2012 1970 1975 1980 1985 1990 1995 2000 2005 2012 SSoouurrccee:: OOEECCDD Pensions at a Glance 2013 (www.oecd.org/pensions/pensionsataglance.htm), life expectancy estimates are from UN World Population Prospects, the 2012 Revision. 11
- 12. IT’S TIME TO REVOLUTIONISE RETIREMENT Longer, healthier lives, less physical strain at work can facilitate retirement revolution Longer working lives are inevitable, let’s prepare for it But not full-time – need flexible working, more self-employment Whole new phase of life for 21st Century – new social norms Retirement can be a process, not a one-off event Lifetime income and output increase 12
- 13. INDIVIDUALS AND ECONOMY LOSING OUT 13
- 14. WE CAN MAKE AGEING MORE PRODUCTIVE ½ out of work over-50s unemployed for over 1 year (cf 30% of all adult unemployed) Many have caring responsibilities and drop out of work, then cannot come back Many become discouraged after facing ageism In 1961 90% of UK men age 60-64 were in work, now around 50% 2million over-50s are self employed Increasing employment for older generations boost overall demand and jobs 14
- 15. AN AGEING UK WORKFORCE 15
- 16. CHALLENGING AGEISM Are policymakers frightened to make the case for older workers? Employers and individuals cling to old-fashioned stereotypes and prejudices Age discrimination is damaging Change is starting but needs to accelerate Objective assessment of later life working 16
- 17. PRIORITIES FOR POLICY MAKERS Lead debate and raise awareness of opportunities and benefits – social norms change slowly Remove structural barriers to working longer (e.g. state pension, means-testing, retirement ages) Incentives? Regulations? Encourage healthy workplaces fit for older workers, with the appropriate flexibilities Skills development for older workers: apprenticeships, new careers, training, returners courses Make the case to employers 17
- 18. PROMOTING PRODUCTIVE AGEING – 3’R’S Later life working agenda 1. Retain – keep older workers in the labour force, (part-time?), don’t lose skills 2. Retrain – ongoing workplace training, mid-life review, less physical work 3. Recruit – focus on over-50s unemployed or returning to work after illness/caring Changing attitudes to later life working – rethinking retirement and age stereotypes Flexibility, individual assessments, encouragement, acceptance 18
- 19. BENEFITS TO BUSINESS Retain knowledge, firm-specific skills and experience Maintain productivity - avoid skill shortages Increase customer satisfaction and profitability Larger pool of talent to choose from, especially if part-time Staff loyalty 19
- 20. BENEFITS TO INDIVIDUALS Financial benefits Extra years worked Extra income (average workers, Can also improve physical and mental wellbeing Retraining, mentoring, feel valued, social interaction New start in your 50s – not the end! cumulative) Increase in pension fund (approx.) 1 £25,000 £4,500 (+4%) 2 £50,000 £9,500 (+8%) 3 £75,000 £14,000 (+13%) 20
- 21. BENEFITS TO SOCIETY AND ECONOMY Higher output and national income – better long-term growth Increased national wellbeing Reduced benefit spending Older workers are complementary to young, not substitutes – no crowding out Intergenerational cohesion 21
- 22. ACTION IN THE UK Ended Default Retirement Age Extended right to request flexible working Tax breaks for older workers (no National Insurance payments) Business Champion for Older Workers making the case for later life working Support for those off work due to ill health (new ‘Health and Work Service’) Working with Local Enterprise Partnerships (responsible for local growth in England) Guidance and toolkits for employers Pilot measures for getting older unemployed back to work Flexibility in accessing pensions – possibilities to combine work and pension income 22
- 23. INTERNATIONAL COMPARISON Employment rates for 55-64 year olds across OECD countries 80 70 60 50 40 30 20 10 0 Belgium Italy France OECD - Total United Kingdom Euro area (18 countries) European Union (28 countries) Netherlands Canada United States Germany Japan Switzerland Sweden Country/Area Employment Rate (%) Source: OECD 23
- 24. OECD RETIREMENT LENGTH Source: OECD Years spent in retirement (2012) - 5.0 10.0 15.0 20.0 25.0 30.0 France Belgium Italy Austria Luxembourg Greece Slovenia Australia Finland Spain Germany Canada Switzerland Netherlands Czech Poland Slovak Japan Ireland OECD Hungary Denmark UK Sweden Norway Israel Estonia USA New Turkey Portugal Iceland Korea Chile Mexico Brazil Russian China South Africa Country Years in retirement Women Men 24
- 25. ACTION AT INTERNATIONAL LEVEL European Social Fund – use available funding to best effect for older workers? Wide body of UK and international research (e.g. ESRC and ILC research programmes) US, Canada, NZ, Australia and UK have outlawed mandatory retirement Japan – age 65, Sweden – age 67, France – age 70 – all have seniority wages Old age dependency ratio – can we redefine ‘old age’ and ‘dependency’ measures Test and evaluate successful policies to retain, retrain and recruit older workers 25
- 26. INITIATIVES TO CONSIDER Incentives for employers or individuals to keep working – reduce ageism Flexible working, mentoring, generational job sharing Retirement and financial planning offered to all age groups Carer’s leave or ‘Family Crisis’ leave, combine work and care, gap breaks? Continuing education and training – lifelong learning Specific help for unemployed older people – retraining for new skills, help carers back to work Apprentice schemes, recruit senior people part-time 26
- 27. CONCLUSIONS Longer working lives already underway, need to accelerate trends 3 ‘R’s – Retain Retrain Recruit Higher lifetime income, more growth, improved wellbeing, lower benefit spend, less poverty Not about forcing people to work longer - enabling, facilitating, encouraging More productive ageing is a win-win for individuals, business and society as a whole It’s inevitable, it’s beneficial, let’s embrace it 27
- 28. …THANK YOU FOR LISTENING You can contact me via DWP: fuller.workinglives@dwp.gsi.gov.uk www.pensionsandsavings.com @rosaltmann www.rosaltmann.com 28
- 29. ILC Global Alliance Robert Butler Memorial Lecture: Productive Ageing Wednesday 29th October 2014 This event is kindly supported by Pfizer and hosted by the LGA #ilcglobal alliance
Notas do Editor
- The current pension scheme was designed in the 1950s People were expected to work for 50 years and be retired for five to 10 years In the 21st century people are working 45 years and are retired for up to 23 years Retirement equals about 50% of working life Work, retirement and pensions have been squeezed at both ends
- The current pension scheme was designed in the 1950s People were expected to work for 50 years and be retired for five to 10 years In the 21st century people are working 45 years and are retired for up to 23 years Retirement equals about 50% of working life Work, retirement and pensions have been squeezed at both ends
- This is a huge opportunity for the financial services industry to deliver a new retirement reality for consumers. The UK can lead the world with its new retirement savings framework Retirement planning will need to include saving and working – people need to plan to use both their financial capital and their human capital There is a vital role for advisers – we need a National Wealth Service which will focus people’s minds on how crucial it is to save for retirement and to plan for their financial future. Products need to change and we need a revolution in retirement accumulation and income solutions, rather than just tweaking and tinkering with the current product set.
- Shep to compere questions and introduce voting buttons