Longer Work Lives Julie Zissimopoulos Schaeffer Center for Health - - PowerPoint PPT Presentation

Longer Work Lives

Julie Zissimopoulos Schaeffer Center for Health Policy and Economics, University of Southern California A Forum on Financial Experiences of Older Adults, Federal Reserve Board July 17th, 2013

Middle Age and Older Workers Made Remarkable Changes in their Participation in the Work Force

Workforce participation rates of U.S. women and men, 1950- 2010, projected 2020-2030

Percent 10 20 30 40 50 60 70 80 90 100 1950 1960 1970 1980 1990 2000 2010 2020 2030

Women 55-64 Women 65+ Men 55-64 Men 65+

Ages 55-64

Education, Technology, Longevity and Work by Women Are the Primary Reasons for Longer Work Lives

Pension reform and employment protections may be secondary forces

10 20 30 40 50 60 70 80 1980 1985 1990 1995 2000 2005 Percent in Labor Force Women United States Women OECD Men United States Men OECD

Empirical Study Suggests that Older Workers Will Continue Working Longer

 Education level of older workers is rising  More working women over age 45 - room to

grow

 Claiming age 67 for cohorts not yet retired  Greater longevity  Changes to pension plans gaining momentum

Forces at Play

Job Churning Among Older Workers is Common Today but Returning to Work is Challenging

• Workforce policies may not well

suited for older workers

• Need a better understanding of

why individuals are involuntarily

• ut of the labor force

Only about one-half of older job searchers find work within two years – Data from a nationally representative sample over age 50 Policy has a role to plan

Longer Work Lives Reduce Economic Challenges of an Aging Population

30 35 40 45 50 55 60 65 1990 2010 2030

Ratio of non-workers to workers x 100

:

5.3 10

With the workforce continuing to grow With flattening growth of the workforce (as in projections)

:

10 6.2

:

5 10