Presentation on theme: "Designing the Age Friendly Workplace1 The Aging Workforce: What It Is and Why It’s Happening."— Presentation transcript:
Designing the Age Friendly Workplace1 The Aging Workforce: What It Is and Why It’s Happening
Designing the Age Friendly Workplace2 Retirement Patterns Over Time: Retirement Is Becoming Less Common Source: U.S. Bureau of Labor Statistics Percent of Population 65+ In the Labor Force Labor Force Participation Rate of Workers 65+, 1948-2007
Designing the Age Friendly Workplace3 Key Points The 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 Workplace4 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 Workplace5 Supply and Demand: Baby Boom, Baby Bust Source: WA Office of Financial Management Number of People Change in Population by Age Group, 2005-2025
Designing the Age Friendly Workplace6 Potential Labor Shortage? Baby Boomers Reaching Retirement Year Projected shortage of over 1,000,000 nurses in 2020 FTE’s (Thousands) 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 Professions Health Resources and Services Administration. (2004).
Designing the Age Friendly Workplace7 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 Workplace8 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 Workplace9 Older Workers Need to Work : Insufficient Savings Percentage of Workers Source: U.S. Bureau of Labor Statistics
Designing the Age Friendly Workplace10 Older Workers Need to Work: Average Out of Pocket Costs for Health Care Source: Out of Pocket Health Care Expenses By Age and Insurance Coverage, 2003 Agency for Healthcare Research and Quality
Designing the Age Friendly Workplace11 Older Workers Want to Work Top 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 Workplace12 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 2/2/2005 Ratio of People 65+ to People 18-64, %
Designing the Age Friendly Workplace14 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!