Commentary: The hidden dividends of a longer life
Elderly in Singapore (File photo: TODAY)
HULL: People are generally living longer than previous generations across most parts of the world. Rising life expectancy is a result of advances in medicine as well as improving living standards and healthier lifestyles.But while this should be celebrated for social reasons, is it beneficial in economic terms?
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File photo of an old man drinking out of a bottle of water. (Photo: Christy Yip)
Employers worry about the burden of managing an expanding number of older workers who cannot afford to retire when they want to, are less physically capable to take on certain tasks than younger colleagues, and are perceived as less adaptable to changes in work.Many people are afraid that the burden of longer lives may make retirement unaffordable. In the UK, a third of retired people have the state pension as their only source of income.
Even young people have concerns about the cost of ageing. If retirement ages stay where they are, future generations will be responsible for supporting an increasing number of retirees through rising taxes and pension contributions.If older people delay retirement (as they are across Europe where for men it was aged 63.4 years in 2016 compared with 62 ten years previously), young people worry about being crowded out of the job market.
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(Photo: AFP/Toshifumi Kitamura)
But there’s an alternative perspective which frames an ageing population as a phenomenon which can enhance productivity and therefore pay a societal dividend.Older workers have formal, technical and tacit skills which they’ve accumulated through long service. Employers in sectors which are facing labour shortages are seeking to acquire such skills through programmes such as mid-career apprenticeships.Older workers can also help younger ones find pathways into secure and well-paid work through mentoring and job sharing. Many older people are also contributing to social welfare by taking on caring roles such as looking after grandchildren and elderly parents.
READ: Living longer? Here’s what working for 60 years should look like, a commentaryGET THEM WHEN THEY’RE OLDERWhether increased longevity is a burden or a dividend depends on the extent to which societies prepare for the challenges of ageing populations and plan for making use of the benefits.
One of the most tangible benefits of living and working longer is the retention of skills and knowledge. However, employers do not always know how to use such assets, especially when they come from outside their workplaces.For example, I am working on a project with the Officers’ Association on the experiences of older military officers in transitioning to civilian work.Employers speak positively of officers but are often unsure how to use skills acquired through military service. But officers have skills in leadership, work organisation and decision-making which can be applied to a broad range of jobs.Economies which are experiencing a longevity dividend are those in which governments, employers and labour unions are working in a coordinated way to make use of the older workforce as a resource.
An elderly couple looks out at the ocean as they sit on a park bench in La Jolla, California November 13, 2013. REUTERS/Mike Blake
In Japan, for example, the government has invested in Silver Human Resource Centres to help older people gain employment in sectors facing skills shortages.Training and intergenerational learning is being facilitated in places like Hong Kong through elderly academies which encourage older people to take part in education while normalising older people’s place in the classroom for young students.Across Europe, employers and unions are collaborating, with help from EU funding, to develop, pilot and embed new approaches to managing age by redesigning work.
READ: Matching older workers to jobs the key manpower challenge for Singapore, a commentaryThe longevity dividend, like most economic benefits, is attainable but needs to be worked for. Mobilising older workers’ skills, expanding labour forces and fostering inter-generational solidarity will mean that rising life expectancy can be both socially and economically good.Matt Flynn is a professor in organisational behaviour and human resources at the University of Hull. This commentary first appeared on The Conversation. Read it here.