Socio-economic differences in retirement timing and participation in post-retirement employment in a context of a flexible pension age

The associations of physical incapacity and wealth with remaining in paid employment after age 60 in five middle-income and high-income countries

Previous studies on health and socioeconomic determinants of later-life labour force participation have mainly come from high-income European countries and the United States of America (USA). Findings vary between studies due to different measures of socioeconomic status and labour force outcomes. This study investigated longitudinal associations of physical incapacity and wealth with remaining in paid employment after age 60 in middle- and high-income countries. Using harmonised cohort data in the USA, England, Japan, Mexico and China (N=32,132), multilevel logistic regression was applied for main associations. The age-related probabilities of remaining in paid employment by physical incapacity and wealth were estimated using marginal effects. This study found that physical incapacity predicted lower odds of remaining in paid employment in each country. Wealth was associated with higher odds of remaining in paid employment in the USA, England, and Japan, but not in Mexico. Probabilities of remaining in paid employment were high in Mexico but low in China. The absolute difference in the probability of remaining in paid employment between the richest and the poorest groups was greater in the USA than that in any other country. In the USA, England and Japan, the inverse association between physical incapacity and remaining in paid employment could be partially compensated by wealth only when physical incapacity was not severe. National policies, including considering older adults' changing capacities for job placement and prioritising the provision of supportive services for socioeconomically disadvantaged older adults, developing pathways for informal workers to access social security and pension coverage, and encouraging employers to hire socioeconomically disadvantaged older workers and enhancing their employability, could be facilitated. Future studies, such as exploring health and socioeconomic determinants of remaining in part-time and full-time paid employment separately in more countries, and the moderating effects of relevant policies on these associations, are needed.

How Does the Statutory Retirement Age Affect Older workers' Employment in Relation to Individual and Work-Related Factors?

Policies aimed at increasing employment among older people often focus on the statutory retirement age. Taking into account the characteristics of workers and work-related factors, we examine the impact of reaching the statutory retirement age on continuing employment. In addition to the use of survival trees, we propose a novel method to predict the probability of staying in employment based on an ensemble of survival trees. We focus on Poland as an example of a European country with a particularly low share of older workers in the labor force. Moreover, reform was carried out in Poland in 2017, lowering the previously raised pension eligibility age. Like other EU countries, pension eligibility in Poland starts after reaching the statutory retirement age. Our results suggest that the timing of retirement is determined by the statutory retirement age to a limited extent compared to other factors. In the case of women, a match of education and occupation, the employment sector, and holding a managerial position had a greater impact on continuing employment than reaching retirement age. In the case of men, the type of job contract had the greatest impact on continuing employment. Our findings indicate that the policies and initiatives aimed at extending working life should pay more attention to work-related factors and gender differences in employment.

Health and inclusive labour force participation

The future of work is rapidly changing, with higher flexibility of the labour market and increasing informal employment in many countries worldwide. There is also an increased pressure to extend working careers until older age. We introduce the concept of working life expectancy as a useful metric, capturing the expected numer of years in paid employment across the working age individuals, in particular among different groups. We describe factors that determine working life expectancy. Macro-level factors focus on the socioeconomic and political context that influences labour force participation, primarily policies and legislation in specific countries. At the meso level, employment contracts and working conditions are important. The micro level shows that individual characteristics, such as education, gender, and age, influence working careers. There are three important groups with a disadvantaged position in the labour market-workers with chronic diseases, workers with impairing disabilities, and workers aged 50 years or more. Within each of these disadvantaged groups, macro-level, meso-level, and micro-level factors that influence entering and exiting paid employment are discussed. To assure that paid employment is available for everyone of working age and that work contributes to better health, specific challenges need to be addressed at the macro, meso, and micro levels. To reach inclusive labour force participation, national policies, company practices, and workplace improvements need to be aligned to ensure safe and healthy workplaces that contribute to the health and wellbeing of workers and their communities.

Increasing retirement ages in Denmark: Do changes in gender, education, employment status and health matter?

Recent studies report significant increases in retirement ages over the past two to three decades in most countries in the Organization for Economic Co-operation and Development-increases that research has attributed mainly to changes in the legislative frameworks for retirement in these countries. Using unique data from the Danish Longitudinal Study of Ageing, this study investigates whether and, if so to what extent, changes to the workforce in terms of gender, education, employment status (employed or self-employed) and health contribute to explaining differences in retirement ages between the cohorts born in 1935 and 1950. The retirement window of these cohorts stretches from the early 1990s to the late 2010s-a period characterized by substantial changes to workforce. On average, retirement ages increased by two years from the 1935 cohort to the 1950 cohort. However, due to changes in the investigated factors having offsetting effects, the net effect of such changes on retirement ages was minor. Thus, while increasing levels of education and better health among older workers contributed to increasing retirement ages, increasing female labour force participation and fewer self-employed workers had the opposite effect. In absolute terms, the total compositional and behavioural influence on retirement ages of changes in terms of employment status (- 0.35 years) was almost as large as the total changes in terms of education (0.44 years). Thus, future studies investigating long-term changes in retirement ages would benefit from including changes in employment status (self-employed or wage earner) as an explanatory factor.

Prolonging working life among blue-collar workers: The buffering effect of psychosocial job resources on the association between physically demanding and hazardous work and retirement timing

The need to delay retirement timing has been acknowledged in Western countries due to demographic ageing. The aim of the present study was to examine the buffering effects of job resources (decision authority, social support, work-time control, and rewards) on the association of exposures to physically demanding work tasks and physically hazardous work environment with non-disability retirement timing. Results from discrete-time event history analyses, in a sample of blue-collar workers (n = 1741; 2792 observations) from the nationwide longitudinal Swedish Longitudinal Occupational Survey of Health (SLOSH), supported that decision authority and social support may buffer the negative impact of heavy physical demands on working longer (continuing working vs retiring). Stratified analyses by gender showed that the buffering effect of decision authority remained statistically significant for men, while that of social support remained statistically significant for women. Moreover, an age effect was displayed, such that a buffering effect of social support on the association of heavy physical demands and high physical hazards with working longer were found among older men (≥64 years), but not younger (59-63 years). The findings suggest that heavy physical demands should be reduced, however, when not feasible physical demands should be accompanied by social support at work for delaying retirement.

The Implication of Physically Demanding and Hazardous Work on Retirement Timing

The need to retain individuals longer in the workforce is acknowledged in many high-income countries. The present study therefore aimed to examine the importance of physically demanding work tasks (PDWT) and physically hazardous work environment (PHWE) in relation to retirement timing among pensionable workers (≥61 years). A particular question was whether PDWT and PHWE increased in importance with age. Six waves (2008–2018) of the Swedish Longitudinal Occupational Survey of Health (SLOSH) were used (n = 5201; 56% women and 44% men; mean age at first survey was 61.0 (SD 2.0) years). Discrete time-event history analysis, stratified by socioeconomic position and gender, showed that among blue-collar workers, PDWT and PHWE were associated with an increased likelihood of retiring within the next two years. With increasing age, high-level PHWE was associated with higher probability of retiring among blue-collar men, whereas heavy PDWT was associated with lower probability of retiring among blue-collar women. Among white-collar workers, having at least some PDWT compared to no PDWT was associated with a lower likelihood of retiring within the next two years. With increasing age, exposure to PHWE was associated with higher probability of retiring among white-collar women. These results suggest that to delay retirements, organizations could offer their older employees, especially blue-collar workers and the oldest white-collar women, alternatives to PDWT and PHWE.

Educational qualification differences and early labor market exit among men: the contribution of labor market marginalization measured across the working life

BACKGROUND

The present study aims to investigate the association between educational qualification and early labor market exit among men and to examine the contribution of labor market marginalization measured across the working life on this association.

METHOD

A register-linked cohort study was conducted including men who completed military service in 1969/70 (born between 1949 and 1951) and were alive at age 55 and not disability pension beneficiaries (n = 40 761). Information on the highest level of educational qualification and the outcome of early exit (disability pension, sickness absence, unemployment, and early old-age pension) was obtained from Swedish nationwide registers between the ages of 55 and 64 years. Labor market marginalization was defined as periods of long-term unemployment and sickness absence over the working life and up to follow-up. Cox regression analyses were used to obtain hazard ratios (HR) with 95% confidence intervals (CI).

RESULTS

Low-educated men were more likely to leave the labor force early due to disability pension or sickness absence (HR: 2.48), unemployment (HR: 2.09), and early old-age pension with- (HR:1.25) and without -income (HR: 1.58). Labor market marginalization across the working life explained a large part of the association for the more involuntary early exit routes (disability pensions, sickness absence, unemployment) and explained very little with regards to the more voluntary early exit routes (early old-age pension with and without income).

CONCLUSION

Exposure to labor market marginalization across the working life was important in explaining educational differences in early labor market exit due to disability pension or sickness absence and unemployment. This study underscores the importance of identifying and implementing preventive measures in the workplace (e.g. adaptions) to prevent new spells of sickness absence and unemployment, especially among low educated individuals.

Loneliness in Older Indian Dyads

Background: Loneliness has been recognised as a major public health concern in older adults in developed nations, with little focus on low- and middle-income countries such as India. While the protective nature of social relationships on loneliness has been explored in the context of marriage, typically these benefits are examined in individual spouses rather than within the marital dyad. Methods: A sample of 398 opposite-sex married Indian couples (mean age 54.8 years) was obtained from the pilot wave of the Longitudinal Aging Study in India (LASI) conducted in 2010. These cross-sectional data were analysed using the Actor-Partner Interdependence Model, with one’s own and one’s partner’s cognitive function, functional limitations, depressive symptoms, employment status and contact with friends included as predictors of loneliness. Results: There were no gender differences in the pattern of associations. Depression was positively associated with loneliness with actor and partner effects being significant. One’s partner being employed was associated with less loneliness. Conclusions: The sample showed low levels of depression, loneliness, and reduced functionality; however, depression still predicted one’s own and one’s partner’s loneliness. Future work using longitudinal data could examine the role of employment in loneliness, particularly within the context of gender roles.

A conceptual framework addressing the complex labour market dynamics of the work-to-retirement process

The way in which retirement is conceptualized and measured is likely to influence the research findings. The previous literature has addressed a wide range of elements related to the complex work-to-retirement process, such as early, late and partial retirement, statutory retirement, work disability and unemployment paths to retirement, or different types of bridge employment. However, conceptual clarity in terms of connections between the different elements is called for. We introduce a conceptual framework of the work-to-retirement process to guide its future measurement. Together with information on the statutory retirement age, the main elements of the framework are based on employment and pension receipt, acknowledging that these may overlap. The framework is flexible to the user, providing the possibility to add various specifications-e.g. of types of employment, types of pension receipt, unemployment, and being outside the labour force-depending on the study context and aims. The framework highlights the complexity of the work-to-retirement process, bringing forth its multifaceted, multiphased and multidirectional features. Accounting for such complexity in later-life labour market dynamics helps to elaborate what is actually addressed when investigating "retirement". Our conceptual framework can be utilized to enhance well-defined, precise and comparable measurement of the work-to-retirement process in studies.

Reversing retirement frontiers in the spaces of post-socialism: active ageing through migration for work

This paper reworks the notion of active ageing through analysis of a case which reverses the retirement-migration nexus – people in the post-socialist realm who approach retirement age and then migrate to begin a new working life. They are thereby introducing a new and complex arrangement to the general concept of ‘international retirement migration’. In the post-socialist world, new retirement migration frontiers emerge in the context of a severe weakening of welfare systems. I illustrate this case with data from long-term research with ageing Latvian migrant women to the United Kingdom and the Nordic countries. Even those whose old-age pensions are more or less adequate nevertheless seek temporary employment and new cultural experiences abroad. However, the dominant trend has been towards the pauperisation of older parents and those approaching retirement age due to the significant decline in state welfare. This case of many older-age Latvians who de facto cannot retire due to low disposable income reveals ‘reverse frontiers of retirement’: working as long as they can, pushing their personal geographical frontiers outward by emigrating for work and making national frontiers more porous through transnational practices. Conceptually and geographically, the research holds relevance for a wider discussion of trends and contextual factors in other post-Soviet and post-socialist countries with increasing diversities among retirees.

The working class and early retirement in Denmark: individual push factors

Previous research finds that members of the working class have a higher risk of early retirement compared to professionals because they are pushed into early retirement. This indicates that not all workers can respond to incentives to extend their working life. Yet, little previous work has been conducted to quantify systematically the extent to which push factors explain why members of the working class have a higher risk of early retirement compared to professionals. Using longitudinal data on Danish workers, the results suggest that members of the working class have an increased risk of early retirement compared to professionals, but poor health, previous spells of unemployment and low job quality mediate a large part of this effect. Among men, the push factors mediate 57 and 86 per cent of the effect of social class on early retirement for skilled manual and unskilled manual workers, respectively. Among women, the push factors mediate 43 and 55 per cent of the effect of social class on early retirement for skilled manual and unskilled manual workers, respectively. Overly physical work demands is the most important mediator, which explains between 23 and 31 per cent of the total effect of belonging to the working class on early retirement. Moreover, the magnitudes of the indirect effects of the push factors depend on the particular pathway into retirement.

Retirement timing in Italy: rising age and the advantages of a stable working career

This article looks at how retirement timing is changing in Italy. A first aim is descriptive and it is to identify recent trends in retirement age, following the pension reform. Then the focus is on factors which may favour or hinder the extension of the working career of older workers. They are studied by looking at the reasons for retirement, introducing the distinction between voluntary and involuntary retirement, and some predictors of retirement. Some of them relate to the work history of individuals, in particular the stability/instability of careers due to episodes of unemployment. The level of education and gender, two variables that may affect the employability of older workers, have also been considered. The study is based on a longitudinal analysis (Kaplan–Meier survival estimates of transition to retirement and binomial logit discrete-time model for the analysis of retirement predictors) of the Survey of Health, Ageing and Retirement in Europe (SHARE) Job Episodes Panel data. They refer to a sample of 1,999 individuals born between 1911 and 1959. Although the various pension reforms initiated in Italy in the 1990s have not yet been fully implemented, retirement age is rising, even in the case of involuntary retirement. Regarding work history, the advantages of a working career with a small number of unemployment episodes emerge from the study.

Financial debt amongst older women in the United Kingdom – shame, abuse and resilience

Long-term poverty, precarious employment, low pay, the increased pension age and real-term reductions in welfare benefits, including bereavement allowances, have brought into focus the financial vulnerability of many older women aged 55 years and older in the United Kingdom. In this article, survey data were analysed alongside evidence from observations of debt support meetings and interviews with older women who were receiving debt advice from a support charity. The findings suggest that older women were more likely to have financial problems than older men, particularly those women who were living on low incomes and who were separated or divorced. Following the breakdown of a relationship, many older women were at increased risk of more debt and bankruptcy, particularly those aged between 55 and 64 years and those in routine and semi-routine occupations. Many women had kept their financial problems hidden due to fear and shame whilst bringing up their children and some had been subject to coercive control and economic abuse by their former husbands or partners. It is important that any pension reforms, changes to minimum wage rates, and new divorce and domestic abuse legislation and welfare policies take account of the circumstances of separated, divorced and widowed older women. More financial support and advice needs to be provided to older women facing financial difficulties.