The Process of Participation and Phased Retirement: Evidence from MatureAged Workers in Australia

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The Process of Participation and Phased
Retirement Evidence from Mature-Aged Workers in
Australia

• Jacqueline M. Drew Michael E. Drew
• School of Economics and Finance
• Faculty of Business
• Queensland University of Technology
• m.drew_at_qut.edu.au
• Thursday, 17th May, 2007
• Productive Ageing Forum

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1. Aims of the Study

• The current study examines the participation and
  phased retirement decisions of mature-aged
  workers in the Australian labour market. Despite
  increasing interest in understanding the factors
  involved in the decision of mature-aged workers
  (defined in this study as workers 50 years of
  age) to participate or withdraw from the labour
  market, a number of key questions remain
  unanswered.

• The specific aims of the current study are
  captured within the following three research
  questions
• To identify how to increase the participation of
  mature-aged workers in the labour market
• To identify barriers to participation and,
• To identify the costs and benefits, price and
  non-price, to engaging mature-aged workers from
  the perspective of the employee (supply-side) and
  employer (demand-side).

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SEM 1 Participation

• Pre-retire income
• Source of current income
• Pre-retire income satisfaction
• Pre-retire economic well-being
• Planning for retirement
• Organisational programs
• Stereotypes of older workers
• Organisational commitment
• Job satisfaction
• Work centrality
• Attitudes towards retirement
• Pre-retire health status

1. Multiple Group SEM of Participation (Not-retire
d/retired)
Economic
Psychological
Male/Female
Age cohorts
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SEM 2 Phased Retirement

• Voluntariness of retirement
• Post-retire. econ. well-being
• Pre-retirement prep. outcomes
• Spousal relationships
• Retirement concerns
• Satisfaction with retirement
• Retirement Adjustment
• Post-retirement health status

Economic
2. SEM of Phased Retirement (Retired only)
Psychological
Male/Female

• The SEMs are estimated with EQS Version 6.1,
  using maximum likelihood as the estimation
  method.

Age cohorts
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4. Methodology

• The current study involved two key phases of data
  collection.
• Data was collected from a large sample of
  individual respondents, with a target population
  of individuals aged between 50 and 65 years of
  age
• 3,000 surveyed, response rate 31
• The second phase involved a sample of government
  and non-government organisations operating on a
  state, national and international basis
• 60 surveyed, response rate 68

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17 Key Findings

• Inverse relationship between economic well-being
  and participation
• Participation, policy distortions and the
  replacement ratio
• Job search strategies and participation
• Consumer preferences, participation and
  psychology
• The positive relationship between stereotypes and
  participation
• The positive relationship between organisational
  programs and participation
• Targeted strategies for female mature-aged
  workers and participation
• The barrier of economic status

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• Emphasis on financial planning for retirement as
  a barrier
• Stereotypes and the barrier of perception
• Employment type barriers to phased retirement
• Recruitment barriers for mature-aged workers
• Organisational benefit of implementing
  mature-aged worker programs
• Program costing and administration
• Managing higher employment costs of mature-aged
  workers
• Individual economic well-being as a benefit
• Individual benefits related to psychological
  well-being

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Multiple Group Model of Mature-aged Worker
Participation for the Not Retired/Retired Group
Final Model
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Full Model of the Phased Retirement Process for
the Retired Group Final Model
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Acknowledgements

• This study was made possible by the financial
  support from the National Seniors Productive
  Ageing Centre (NSPAC) and the Queensland
  University of Technology (QUT). The contribution
  of the Australian Government, Department of
  Health and Ageing (DHA) is also gratefully
  acknowledged.
• We thank Peter Cassematis (Griffith University,
  GU) and Robert Bianchi (QUT) for invaluable
  research assistance throughout the project and Dr
  Stephen Cox (QUT) for technical advice.
• We acknowledge the contribution of members of the
  Project Steering Committee (and NSPAC Research
  Advisory Committee members), David Deans and Lyn
  Moorfoot (National Seniors, NS), members of the
  NSPAC Research Advisory Committee, Professor
  Margaret Steinberg AM (Chair) (QUT), Kevin
  Vassarotti (DHA) and Don Maconachie (University
  of the Sunshine Coast, USC). The research has
  also benefited from discussions with Professor
  Philip Taylor (University of Cambridge) and
  Professor Allan Layton (QUT).
• We thank Juanita Mottram and colleagues (NS) for
  assistance in the collation of the survey
  responses and the team of fifteen data entry
  assistants (honours and doctoral students) from
  the School of Economics and Finance (QUT) for
  their efforts.
• Finally, and most importantly, we thank those
  individuals (members of the NS) and organisations
  throughout Australia that generously gave of
  their time to participate in the study.
• The opinions expressed are those of the authors
  and are not necessarily held by the DHA, GU, NS,
  NSPAC, QUT or USC. Any remaining errors are also
  the authors responsibility.

Drew, Jacqueline M., and Michael E. Drew, 2005,
The Process of Participation and Phased
Retirement Evidence from Mature Aged Workers in
Australia, Brisbane Post Pressed, ISBN
1-876682-86-8. www.postpressed.com.au