Presentation at Minnesota Gerontological Society Conference on 4/29/2011

1. Rethinking Work for a Changing World Tracy Godfrey Kate Schaefers MN Gerontological Society Conference April 29, 2011 Godfrey & Schaefers April, 2011 1 1 1

2. Rethinking Work: Session Goals Provide information on demographics on the aging population and workforce Trends and changes in thinking on work and retirement Ideas of what older workers and employers can do Discuss broader implications of these trends across other aspects of society Godfrey & Schaefers April, 2011 2

3. “A Change Is Gonna Come”: Aging Population The number of boomers reaching “retirement” age will grow dramatically in the years to come. 30% more will turn 65 this year than last year People are also living longer Number of Adults age 65+ Will Continue to Grow 79% Increase between 2010 and 2030 By 2030, those over 65 will make up 19.3% of population In Minnesota, numbers of people aged 65+ is expected to total 1.3 million in 2030 Godfrey & Schaefers April, 2011 3 Population Workforce Work Sources: Administration on Aging, 2009, Ecumen 2007 Age Wave Study

4. Godfrey & Schaefers April, 2011 4 Age Distribution Has Changed Population Workforce Work Minnesota 1980 vs. 2007 Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10

5. How old is “Old”? The answer depends... Age Group Early Boomers (1946 – ’51) Middle Boomers (1952 – ’58) Later Boomers (1959 – ’64) “Old” 78 Godfrey & Schaefers April, 2011 5 Population Workforce Work Survey of Baby Boomers: 75 71 Generally, “Old” seems to be at least 5 years older than you are. Source: “Boomers in the Middle, MetLife Mature Market Institute, 2010

6. “A Change Is Gonna Come”: Aging Workforce Workers over 50 are a growing portion of the workforce (now more than 30%) Labor force participation of those 55+ is increasing More people are working past age 65 (now 18%) In the U.S. from 2006 to 2016, workers 65+ will be the fastest growing age group (+84%); ages 55 -64 is next(+37%); workers 16 – 24 will decrease by 7%; Minnesota trends show this same pattern. If trends continue, adults age 55 & up will be 25% of the workforce in 2019. Godfrey & Schaefers April, 2011 6 Population Workforce Work

7. In Minnesota, 30 Percent MoreWorkers Turned Age 62 in 2008- Trend Will Continue Until 2022 Godfrey & Schaefers April, 2011 7 Population Workforce Work 2005 ACS Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10

8. “A Change Is Gonna Come” Work is changing Move to a Knowledge Economy – from a manufacturing economy Global economy More technology, mobility: Internet, WiFi, Smart phones, Social media Networked – closer links across geography - Virtual Godfrey & Schaefers April, 2011 8 Population Workforce Work

9. Longer Lives, More Years in Middle Godfrey & Schaefers April, 2011 9 Middle Age Middle Age Young Adult Young Adult Retiree Senior Elderly Retiree Senior Elderly 1900 1900 55 - 70 20 - 40 40 - 55 70 – 85+ Upper Middle Age? Elderly Senior Retiree Middle Age Young Adult Now A “New Stage” Has Emerged On average, people live 18 years beyond 65 Frail elder stage pushed out a decade or more People age 60-75 remain active, healthy 9 9

10. Defining a New Stage of Life “The sixty-somethings headed our way will invent an entirely new stage of life—the encore years—between the end of middle adulthood and anything resembling old age and retirement. We brand them the young-old, or the working-retired. Or maybe just the oxymoronic years….” - Marc Freedman, AARP Bulletin, March, 2011 Godfrey & Schaefers April, 2011 10

11. 11 Aging Boomer Population: Burden? Inadequate savings for retirement Burden on healthcare systems, greater healthcare costs Drain on Social Security, Medicare, other Social Service programs – fewer workers paying in to support more recipients Strain on families and society in caring for those in dependency Eventual shortage of labor and talent Chinese Character for Crisis Opportunity + Danger Godfrey & Schaefers April, 2011

12. 12 Aging Boomer Population: Opportunity? Well educated, skilled sector of the labor market. Healthy and vital contributors. Skills well suited to today’s knowledge based economy. Desire to give back, contribute, fits with emerging employment needs (i.e. health care, education, environment, social service). Chinese Character for Crisis Opportunity + Danger Godfrey & Schaefers April, 2011

13. Benefits in Extended Work Life For the individual: Money: Increased income, more savings Sense of accomplishment, contribution Increased social interaction and involvement Extended vitality and health - for those who stay engaged Godfrey & Schaefers April, 2011 13 13

14. Benefits in Extended Work Life For the Employer: Alleviate, moderate or postpone shortage of labor Retain talent; less brain drain Succession planning, transfer of knowledge Organizational profitability and competitiveness Older workers bring qualities that are needed: engagement, work ethic, efficiency, focus Godfrey & Schaefers April, 2011 14 14 14

15. Benefits in Extended Work Life For Government: Extend life of Social Security, Medicare Lower costs for health care, welfare and other “entitlement” programs Volunteers contributing to non-profit, community & civic efforts People pay income taxes as they continue to work Godfrey & Schaefers April, 2011 15 15 15

16. Benefits in Extended Work Life For society: Improved health; reduced healthcare cost Healthier communities – more engaged, involved and caring Increased labor utilization, productivity, economic growth, greater prosperity Economy grows faster when more people work longer Create “communities for life” – across generations Godfrey & Schaefers April, 2011 16 16 16

17. “Retirement” – Old Myths vs. New realities and vision The Old Myth: Retire at age 65 and stop working The “Golden Years” in “Sun City” – moving away to live in a retirement community “Senior Citizens” living in “55+” housing, away from other age groups Focus on a life of leisure, without responsibility “Elderly” - increasing frailty and declining health “It’s all downhill from here!” Godfrey & Schaefers April, 2011 17

19. 73% of those who plan to work say their job will be different than their current job.The Ecumen “Age Wave” Study, 2007

20. Why people are working longer It’s more than Financial: AARP Survey – “Ideal Job”: Personal & Professional Development factors were most important, followed by Workplace Culture, and then Flexibility, all ahead of Finances What older workers are seeking in a job: Still healthy – want to stay physically & mentally active Make use of one’s skills and talents Want to make a difference; have a sense of purpose One’s contribution is valued; respect Flexibility and control over one’s work Learn new things and grow professionally Social: Stay connected, camaraderie, relationships Godfrey & Schaefers April, 2011 19 Why do you work? 19 19

21. “New Stage” Models include Work Work, volunteering, care-giving, lifelong learning Erik Erickson’s concept of Generativity, Legacy Work provides structure, identity, social interaction, meaningful experience, accomplishment, income Engaged Aging Giving Back Encore Movement Godfrey & Schaefers April, 2011 20 Purpose, meaning, contribution and legacy become more important as we age – and the workplace is an outlet for these

22. The Second Half of Life –Shifting Vision Shifting Inner Vision Reflection New Perspective Seeing the world with new eyes. 21 Godfrey & Schaefers April, 2011

23. Reality Check: Myths & Hurdles Older Workers Encounter Myths Not committed; short-timer Less productive Reduced intellect; can’t learn Inflexible, rigid Too high on the “career ladder”; can’t adjust Not vigorous and active; risk of health issues Godfrey & Schaefers April, 2011 22 Reality More Loyal;Reliable “Experience dividend” – focused, work smarter “Grown-up brain” – higher order thinking; integrate information; Sage wisdom See multiple perspectives; allow for compromise Work differently: “career lattice” - jobs with purpose Conscientious; lower absenteeism; vital; engaged Illustration: “Hiring Grandpa”, The Economist, Apr. 9, ‘11

24. Reality Check: Myths & Hurdles Older Workers Encounter Hurdles Marginalized: Pushed to the side in discussions, decisions Passed over for training and new assignments Trivialized: Given routine or menial tasks – especially in volunteer roles Risk of long-term unemployment Age discrimination in employment and on the job (either intentional or unintended consequences of rules and policies) “Age-ism”: Negative stereotypes, assumptions, attitudes; jokes and categorization (in the media, advertising, general society) Godfrey & Schaefers April, 2011 23

25. Rethinking Ways To Work Career continuity – Keep working where you are Recombinant Career – combine skills to use in a new way, in a new setting Career changer – back to school, training or apprenticeship or internship to move into a new field Encore” career – work that combines meaning, social impact, and a paycheck Volunteer or community roles Godfrey & Schaefers April, 2011 24 At this point, much of this is being done by individuals, with few established options

26. Workers: Pathways to New Work Formal Education Return to school Obtain a credential Informal, On-the-job Learning Stretch assignments to strengthen skill sets Crafting Experiments (Ibarra’s concept of Working Identity) Volunteering, civic engagement Explore an internship Alternative Work Engagements Project assignments Temporary, flexible work arrangements Rebranding Understand and build on transferrable skills Godfrey & Schaefers April, 2011 25 25 25

28. Pension, rehire, work rules to allow workers to continue

30. Flexibility in pay and benefits choicesMeaningful work – “Lead with purpose” Ongoing education, training and skill development Senior Consultant or “Guru” roles Career transitions; recombinant careers to use skills in new ways; encore careers; bridge jobs Pro-rated health benefits. Recapturing “alumni” and retired workers Godfrey & Schaefers April, 2011 26 26 26

31. Broader Implications for this new view of work for an aging world Housing Social Services Public Policy and government regulations Education – for training and lifelong learning Civic and community life Workforce: increasing productivity (efficiency + innovation) What does this mean for you and your sphere of work? Godfrey & Schaefers April, 2011 27

32. Tapping the Talent of an Aging Workforce Will Take: Each person’s awareness, persistence and motivation Employers’ receptivity and flexibility Government promotion and regulatory structure Community culture that supports and encourages lifelong engagement and learning Godfrey & Schaefers April, 2011 28 28

33. The Bull’s Eye - When It All Aligns:one’s desire, labor market & societal need Culture Godfrey & Schaefers 29 Culture Community Resources Governmental Governmental Workplace Workplace Image Image Self Self Identity Identity Ways to Connect Engage Multiple Generations Communities for a Lifetime Agencies Community Resources Support Groups OSHA Pension Laws Workforce Centers Pension Rules Work Rules Networks Schools Business Development & Career Innovation Training & Education Research/ Innovation Funding& Support Job Design Benefits Social Security Selection Flexible Schedule EEO Ways to Connect Community Learning Medicare FLSA Employment Laws Environment that values lifelong work Multiple Models Of “Retired” 29 29 April, 2011

34. Appendix Godfrey & Schaefers April, 2011 30

35. Percent Change in U.S. Labor Forceby Age, 2006 - 2016 Thousands -1,542 4,716 -2,194 -63 7,304 4,582 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and older As the baby-boom generation ages, those 55 – 64 in the labor force will increase by 7 million; 35 to 44 year-olds will shrink Source: US Bureau of Labor Statistics, Occupational Outlook Quarterly, Fall, 2007 Godfrey & Schaefers 31 April, 2011

36. The End of Retirement as We Know It “All of us are now in uncharted territory, a stage of life not seen before in human history. And whether woman or man, whether working-class or professional, we are all wondering how we’ll live, what we’ll do, who we’ll be for the next twenty or thirty years.” - L.B. Rubin (“The truth about aging in America”, 2007) Godfrey & Schaefers April, 2011 32 From “Engaged as We Age”, Sloan Center for Aging, Boston College, Feb., 2010, p. 13 32 32

37. 33 History of Retirement Von Bismarck – Germany - 1883 Social Security Act of 1935 1900’s 1930’s 1960’s TODAY Godfrey & Schaefers April, 2011 Sun City - 1960

38. Elements of Older Workers’ Ideal Job Dimensions: Workplace Culture(W), Personal & Professional Development (P), Flexible, Convenient Working Arrangements (F), Financial (Fi) Godfrey & Schaefers April, 2011 34 Development & Workplace come first, then Flexibility and Finances Source: AARP, 2008

39. MN Boomers: Why They Work Dimension% who find important Keep Physically Active: 86% Keep Mentally Active: 86% Income: 86% Health Insurance: 84% Sense of Purpose: 82% Stay Connected with Others: 82% New Challenges: 79% Godfrey & Schaefers April, 2011 35 Source: The Ecumen “Age Wave” Study, 2007

40. Godfrey & Schaefers April, 2011 36 Transferring Talents to Recombinant / Encore Careers https://www.wellsfargoadvisors.com/2hc/second-half-champions.htm http://www.pbs.org/wttw/retirementrevolution/2009/08/04/alice-williams/ www.youtube.com/watch?v=agTin2F0JPs&feature=youtube_gdata www.youtube.com/watch?v=c132deipCeM&feature=channel A: Wells Fargo 2nd Half Champions; B: Encore Careers; C: Personal Source; D: PBS Retirement Revolution 36 36

42. “QUEST: Qualified Employees Seeking Transfer” – Cornell University (C)

43. Special assignments/Job Rotation – for mobility & skill-building–Deere & Co

44. Phased Retirement– Pitney Bowes Engr. Dept. – variety of shapes, including condensed workweeks, telecommuting & reduced workweeks (B)

45. Apprenticeship Program – Boston Scientific – Pair up highly-skilled veteran craftsmen & apprentices for knowledge transfer and succession planning. (A)

46. Retirement Planning Seminars – Weyerhaeuser – Paid time away for workers over 50 for a 3 day retirement planning workshop, with partners (e.g. spouses)(A)Cross-Generational Networking Circle – MITRE – for knowledge-sharing “Encore Fellows” – Civic Ventures pilot in S.F. Bay Area – Executives from For-Profit sector working in Non-Profit assignments Boomer Connection – Wells Fargo resource group Godfrey & Schaefers April, 2011 37 A: MetLife; B: Sloan Center, Boston College; C: AARP Top 50 Employers 37 37

47. Resources Civic Venture: www.civicventures.org Information on “encore careers” SHiFT: www.shiftonline.org Local network supporting people in mid-life who seek greater meaning in life and work The Sloan Center for Aging and Work, Boston College: http://www.bc.edu/research/agingandwork/ MN Governor’s Workforce Development Council – Older Workers Workgroup: http://www.gwdc.org/committees/older_workers_workgroup/ MN career, education & job resource: http://www.iseek.org/ - Collaboration between government (MN DEED) & education (MN SCU) MetLife Mature Market Institute: www.metlife.com/mmi/ AARP Foundation – Worksearch site: http://foundation.aarp.org/WorkSearch/ “Encore: Finding Work That Matters in the Second Half of Life,” Marc Freedman (Public Affairs Paperbacks, 2008) “The Big Shift: Navigating the New Stage Beyond Midlife,” Marc Freedman (Public Affairs Paperbacks, 2011) “Working Identity: Unconventional Strategies for Re-inventing Your Career,”Herminia Ibarra (Harvard Business School Press, 2003) PBS: “Retirement Revolution”:http://www.pbs.org/wttw/retirementrevolution/watch/ (Sep., 2009, 2 hr. program) Godfrey & Schaefers April, 2011 38 38 38