Presentation on theme: "Productive Ageing Forum"— Presentation transcript:
1 Productive Ageing Forum The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in AustraliaJacqueline M. Drew & Michael E. DrewSchool of Economics and FinanceFaculty of BusinessQueensland University of TechnologyThursday, 17th May, 2007Productive Ageing Forum
2 1. Aims of the StudyThe 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 satisfactionPre-retire economic well-beingPlanning for retirementOrganisational programsStereotypes of older workersOrganisational commitmentJob satisfactionWork centralityAttitudes towards retirementPre-retire health status1. Multiple Group SEM of Participation(Not-retired/retired)EconomicPsychologicalMale/FemaleAge cohorts
4 SEM 2: Phased Retirement Voluntariness of retirementPost-retire. econ. well-beingPre-retirement prep. outcomesSpousal relationshipsRetirement concernsSatisfaction with retirementRetirement AdjustmentPost-retirement health statusEconomic2. SEM of Phased Retirement(Retired only)PsychologicalMale/FemaleThe SEMs are estimated with EQS Version 6.1, using maximum likelihood as the estimation method.Age cohorts
5 4. MethodologyThe 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 age3,000 surveyed, response rate 31%The second phase involved a sample of government and non-government organisations operating on a state, national and international basis60 surveyed, response rate 68%
6 17 Key FindingsInverse relationship between economic well-being and participationParticipation, policy distortions and the replacement ratioJob search strategies and participationConsumer preferences, participation and psychologyThe positive relationship between stereotypes and participationThe positive relationship between organisational programs and participationTargeted strategies for female mature-aged workers and participationThe barrier of economic status
7 Emphasis on financial planning for retirement as a barrier Stereotypes and the barrier of perceptionEmployment type barriers to phased retirementRecruitment barriers for mature-aged workersOrganisational benefit of implementing mature-aged worker programsProgram costing and administrationManaging higher employment costs of mature-aged workersIndividual economic well-being as a benefitIndividual benefits related to psychological well-being
8 Multiple Group Model of Mature-aged Worker Participation for the Not Retired/Retired Group – Final ModelPre-Retirement HealthStatusStereotypes of OlderWorkersRetirementEconomicWellBeingAttitudes to RetirementOrg Programs for OlderPersonalOrganisationalAttitudesCommitmentJobSatisfactionWorkCentralityPlans for Retirement0.15*/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 WeightsGreater concerns with economicwellbeing is predictive of less positiveattitudes to retirementMore positive org attitudes arepredictive of less positiveMore positive stereotypes are predictiveof more positive org attitudesGreater availability of orgProgarmsis predictive of morePositive personal org attitudesof more positive attitudes to retirement (retiredgrponly)Programs
9 Full Model of the Phased Retirement Process for the Retired Group – Final Model Pre-Retirement HealthStatusPlans for RetirementStereotypes of OlderWorkersRetirementEconomicWellBeingPostAttitudes to RetirementOrg Programs for OlderPersonalOrganisationalAttitudesCommitmentJobSatisfactionWorkCentralityConcernsSpousalRelationshipsPrep. OutcomesAdjustmentSatisfaction withVoluntariness of0.18*0.19*0.78*0.69*0.73*0.75*0.11*0.14*0.080.000.050.30*0.25*0.21*0.79*0.060.17*0.29*0.100.040.24*0.28*0.82*0.90*0.42*0.68*
10 AcknowledgementsThis 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 ].