Controversy 10 Is Retirement Obsolete? (c) 2011, SAGE Publications, Inc.

Is Retirement Obsolete? The 20th century could be called the “age of retirement” o 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: o People are now living longer o People are better educated o People are in better health than ever before (c) 2011, SAGE Publications, Inc.

History of Retirement Widespread retirement by workers only became possible after the industrial revolution of the 19th century o Prussian Chancellor Otto von Bismarck first introduced the age of 65 as the basis for pension According to statistics: o The overwhelming majority of both men and women are retired from the labor force after the age of 65 o Older men tend to move away from work and toward retirement o However, in 2000, labor force participation for people over age 65 was higher than it had been at any time since 1979, and the trend has continued into the 21st century (c) 2011, SAGE Publications, Inc.

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 o 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 (c) 2011, SAGE Publications, Inc.

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 o For organizations, corporate downsizing often means a loss of older employees’ experience and skills o 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 (c) 2011, SAGE Publications, Inc.

A New View of Retirement On the negative side, the practice of retirement comes with large hidden costs o 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 o 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 (c) 2011, SAGE Publications, Inc.

Productive Aging People over age 65 are productive in many ways o Three-quarters of older people are engaged in unpaid work such as housework or volunteer roles o 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 o The discovery method of training—trainees discover for themselves how to carry out a task to be learned o Very effective with older workers (c) 2011, SAGE Publications, Inc.

Reading 42: Achieving a Productive Aging Society Caro, Bass, and Chen provide a historical perspective and argue that under the conditions of the later part of the 20th century, which set the stage for trends we are now experiencing, we need to think again about the meaning of retirement, and, in particular, we should design social institutions that can open up new possibilities for productive aging. Making better use of the talents of older people would represent a new social policy goal for American society. What might this look like? (c) 2011, SAGE Publications, Inc.

Reading 43: Prime Time Freedman, in the excerpt from his book Prime Time, predicts that, in the future, aging baby boomers will behave in ways that make earlier ideas of retirement obsolete. In this view, civic engagement could become a new retirement role in years to come. What does Freedman mean by “civic engagement” and what would it take for his vision to come to pass? (c) 2011, SAGE Publications, Inc.

Reading 44: The Busy Ethic David Ekerdt’s article highlights what he calls the “busy ethic” and shows that, for many Americans, both work and retirement are characterized by the same style of activity and productive engagement, whether in a paid job or not. How does he define “the busy ethic” and what are your thoughts about this as a way of being in later life? (c) 2011, SAGE Publications, Inc.

Reading 45: Moving Toward a Creative Retirement Manheimer’s article provides us with a contrasting view of how retirement can be a creative period in a person’s life. Just as paid work is not the only form of productivity, so recreation and relaxation are not the only forms that leisure might take. How does he define “creative retirement” and what are your thoughts about this option for the post-work years of the life course? (c) 2011, SAGE Publications, Inc.