by Jane Fonda
The Ways Seniors Contribute
Older individuals participate in the marketplace by paying for specialized goods and services; they constitute what is called a “silver market.” Economists argue that there is an important dividend that comes from the increasing number of older people who are relatively well-off and who now make up a greater proportion of the market share.1 Many retirees have accumulated wealth and offer significant spending power, which stimulates jobs and financial growth. Older individuals make invaluable investments in real estate, continuing education, technologies for independent living, travel, tourism, health services, and the like. Our spending in the health care industry is not trivial, either. Economists have recently asserted that the health care industry is helping to prop up our nation’s economy; it continues to add new jobs and serves as one-seventh of the economy.
WE SPEND MONEY
Some older people have been nicknamed Woofs (Well-Off Older Folks).2 Identified as having golden spending power, this demographic is being closely watched by marketing companies, insurance companies, and wealth managers. A study by the MetLife Mature Market Institute reported that the estimated spending power of baby boomers will soon exceed $2 trillion dollars annually. Boomer households are believed to spend up to $45,000 per year. It is forecast that a shift in entertainment, advertising, and perhaps voting patterns will occur as boomers retire.3
However, the degree to which the silver market thrives is highly policy-dependent. In the countries where sound retirement plans are provided, older individuals feel secure enough to spend their wealth rather than save it. This underscores the critical importance of keeping Social Security solvent while also upholding incentives for private pensions. At present, no federal laws mandate that our companies—even our largest international corporations—provide pensions to their employees.4 Worse yet, when workers save for retirement solely through private accounts, many find themselves woefully under budget. Currently, only 60 percent of American workers are saving for retirement, and about half of them have put away only $25,000. Yet IRAs and 401(k)s remain the common alternative for the company pension.5 No matter how retirement savings are to be structured in the future, it must be understood that programs that support retirement security also support economic growth.
LATE-LIFE TECHNOLOGICAL INNOVATIONS
Beyond our spending power, our lifestyle changes have spurred significant technological innovation. According to the Stanford Center on Longevity, a host of mobile text-messaging systems and assistive technologies are being developed to improve personal and public health. High-tech inventions, including multisystem household sensors, motion detectors, and robotics, have been developed to help older people live safely and independently in their homes.
People have long been familiar with household accommodations for the elderly, including bathroom railings, motorized stairlifts, and lever-style door handles. But the most up-to-date technologies use sensitive monitoring systems to provide minute-by-minute information to outside caretakers. Environmental sensors can monitor stove and appliance use and household temperature and can indicate hazards such as high carbon monoxide levels, flooding, or gas leaks. Motion and pressure sensors can track when an older person gets in and out of bed and monitor in the event of a fall. Messages from passive sensors can be relayed to caregivers, who can then decide whether to call on the older person. Door sensors can be used to signal when an older person leaves the home, and location trackers can help pinpoint the location of an older person who is prone to wandering. These advances allow older people to live in their homes longer, even if they have a health condition, mobility problem, or complex medication regimen.6
SENIORS ARE READY AND WILLING TO EMBRACE NEW TECHNOLOGIES
Still, it is important to avoid stereotypes when considering how older people use technology. The majority of individuals entering retirement today are generally comfortable using cellphones, computers, and the Internet. Most are not technophobic. In fact, many aging baby boomers eagerly follow along with new advances in telecommunications and computer science. As a generation that identified with rock and roll and counterculture trends, they likely do not (and will not) identify with overly simplistic products designed for “the elderly.” Technology designers appreciate that the over-fifty generation grew up in entirely different circumstances than their parents did; today’s retirees enjoy experimenting with, learning about, and purchasing technology. Experts predict that baby boomers will embrace available technologies, especially social-networking sites, to reduce their social isolation—for example, sites such as eNeighbors and Microsoft’s Virtual Senior Center, now used in New York City.
WE ARE GENEROUS
Not only do we contribute as consumers, we are by far the biggest charitable donors. Older individuals donate more money to universities, charities, and civic organizations than any other age group. According to the National Philanthropic Trust, by 2055 an estimated $41 trillion will change hands as Americans pass on their accumulated assets to the next generation.7 The Chronicle of Philanthropy has reported that “mature donors” (those born prior to 1946) give the highest amount to charity (an average of $1,066 per year), give to the highest number of different charities, and demonstrate the highest rate of giving (77 percent of these individuals give). Close behind are the baby boomers. Among those born between 1946 and 1964, 66 percent give to charity, and they give an average of $900 each year.8
WE VOLUNTEER
Volunteering is another important way older people give. Many deeds by older citizens go unpaid, and we must not underestimate the social and monetary value of volunteerism. Older citizens are active citizens; their efforts as volunteers help uphold communities. They organize and participate in civic organizations, run election polls, mentor young people, support their peers in long-term care and hospice, lead recreation groups, and assist visitors at hospitals, libraries, schools, and museums. They are active in local, state, and federal governing bodies. Older Americans participate in the Peace Corps (with people fifty and over serving as 10 percent of the corps),9 not to mention the many volunteers in the Senior Corps programs. Economists estimate that the tasks performed by volunteers, given the level of education and training that would be required, are valued at $20 per hour.10
WE WORK
Among AARP members, almost half (47 percent) work full- or part-time. The word “retired” does not necessarily mean one has wholly abandoned the workplace. It is estimated that about one-third of men and almost one-fourth of women between sixty-five and sixty-nine are in the labor force today. Furthermore, the rates of employment among older individuals have been rising. AARP projects that roughly one in three workers will be fifty or older within a matter of years.11
Employers frequently fail to recognize the valuable attributes of older workers. The abilities of older people are often underestimated, but they should not be. The depth of our expertise and the breadth of our knowledge base make us critical resources for our communities, families, and places of business. For instance, one’s fund of knowledge and depth of expertise can serve as a cognitive strength well into old age. Similarly, our judgments and decision making in real-world contexts are often sound, having been tempered by experience. After all I have read and heard, I am convinced that whatever small declines come with age, they do not outweigh the strengths tied to our reasoned approach to problem solving and our depth of expertise.
Older people help others maintain their work-life balance. Family caretaking is often provided by older people in the form of care for grandparents, siblings, and peers. Caretaking duties have a direct impact on the well-being of families as well as on the economy. By providing child care and elder care, older people allow other family members to reduce their absenteeism and maintain their productivity in the workplace. Our collective efforts as caretakers represent the equivalent of millions of full-time workers serving the young, old, and infirm.
Problems Persist
POVERTY
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nbsp; Older people remain at high risk for poverty. For 30 percent of retirees, Social Security is 90 percent of their income, and 7.1 million individuals over sixty-five live in poverty. The current unemployment rate for “mature” workers is at an all-time high of 6.7 percent. In 2007, the average income among individuals sixty-five and over was $28,449; but the median income was only $17,382.12 Without Social Security, almost half of all older Americans would be in poverty. Social Security is the most important source of retirement income for the majority of Americans.
SOCIAL SECURITY
The 2008 Social Security Trustees report projected that without any change in current law, the assets of the Social Security trust fund will remain solvent, but not for very long. The disability trust fund, one part of the Social Security umbrella, is projected to remain solvent over the next ten years. The combined fund for retirees and survivors insurance (OASDI trust fund) is expected to remain solvent until 2041. Similarly, the Congressional Budget Office has estimated that Social Security will have sufficient funds to continue paying full benefits on time through 2048.13
Many different solutions have been proposed to keep Social Security solvent for future generations. Experts have considered means testing (reducing benefits for individuals with higher incomes) and/or raising the age of eligibility for payout (the age is currently sixty-six, after being raised from sixty-five). The most popular proposal, however, is to broaden the taxable wage base that funds Social Security.14 As of 2008, Social Security has been funded by a 6 percent tax on wages up to $102,000. Wages above that level were not taxed for Social Security purposes. Historically, the intent of the taxable wage cap was to draw from 90 percent of payroll earnings without overburdening those who earn higher wages. However, today’s wage base for Social Security no longer includes 90 percent of payroll earnings because wages above the taxable maximum have increased more rapidly than wages in general. If the wage base were changed to match the historically intended levels, the maximum taxable wage would be $203,000.15 This adjustment would significantly increase projections for Social Security solvency.
We deserve financial security throughout our retirement.
Social Security should remain a public, government-run program.
We deserve to see our political leaders resolve the solvency issues that will burden future generations.
ABUSE, DISCRIMINATION, AND EXPLOITATION
Older people are vulnerable to victimization. Sadly, hundreds of thousands of reports of elder abuse—including physical, emotional, and sexual abuse—are made to social services agencies every year. Financial exploitation of vulnerable adults is common as well. It frequently occurs among family members and is difficult to enforce. Living trusts, which give outside parties decision-making power over funds, sometimes allow conservators and guardians to mismanage property. Older people deserve opportunities to seek redress in court in cases of exploitation and abuse, regardless of their ability to pay an attorney’s fees. Elder abuse and exploitation must be categorized as criminal offenses and properly enforced.
We deserve support in our court system even if we cannot pay for attorneys.
We deserve to be safe from abuse and exploitation.
Age discrimination at work is another form of exploitation. Significant progress was made with the passage of the Age Discrimination in Employment Act (ADEA), which prohibited mandatory retirement in most professions. However, the ADEA does not permit victims of age discrimination to recover compensatory or punitive damages. Unlike other forms of discrimination legislation, the ADEA lacks stipulations that would serve as a deterrent to age discrimination. Futhermore, greater awareness needs to be given to subtle forms of age discrimination that persist in the workplace. Many older workers are disadvantaged at their jobs because they are denied opportunities for training, promotions, or access to benefits. Ultimately, the effectiveness of the ADEA is dependent on the responsiveness of the Equal Employment Opportunity Commission. The EEOC is responsible for monitoring and enforcing federal employment discrimination law.
We deserve greater protection from discrimination in the workplace.
Ways for Seniors to Keep Working
Employers should support opportunities for older individuals to work by offering flex-time and part-time arrangements. Telecommuting and job sharing can make employment feasible for older individuals who want to maintain a work-life balance. For many, working more years is a preferred plan. Workers generally do not benefit from early retirement, because it can reduce their Social Security and/or pension payments for the rest of their lives. Additionally, staying employed after sixty-five provides social interaction, a sense of purpose, and mental stimulation. Do not forget, companies that retain older workers fare better. Older employees have proven to be more careful, with lower rates of on-the-job injuries. They report a high level of morale and loyalty to their employers. Although teenagers are often given frontline jobs as cashiers or service representatives, older workers are often better equipped to think independently and to properly analyze the features of a complex situation.16
Older workers are proven to have good attendance rates and low turnover. This leads to significant overhead savings for the companies that employ them. Labor economists estimate that the cost to a company when an employee leaves and a new employee has to be hired and trained is significant—somewhere between $2,000 and $3,000 per worker. For large companies, holding down turnover rates can result in millions of dollars in savings. As of 2005, companies that sought to hire and/or retain older workers included Home Depot, Walgreens, MetLife, and Pitney Bowes.17
Younger workers need not fear the retention of older workers. According to Kenneth A. Knapp, with the International Longevity Center, in New York City, there is an erroneous assumption that if older workers stay in the workforce, this will prevent younger people from getting jobs. However, Knapp has asserted that higher employment is a positive all the way around. Higher employment leads to greater economic growth, which ultimately leads to job growth.
We deserve flexible work arrangements in discrimination-free work environments.
Special Concerns for Women
Nearly 72 percent of women in their fifties are in the labor force; thus, pay inequity is a salient issue for older women. As of 2008, women in full-time jobs had a median weekly wage 20 percent below that of their male counterparts. Working women are often the sole providers for their families, yet they tend to be concentrated in low-paying occupations. More than two-thirds of the part-time labor force is made up of women, leaving them with less job security and with far fewer employer-provided benefits. Furthermore, many low-wage workers are hired as part-time, contingent, or temporary workers. In these roles, low-paid employees lack job security, paid leave, and sick leave, and have limited legal protections.18
Retired women have different needs than retired men. For one, women live longer than men. Women outnumber men in nursing homes, and roughly three out of every four individuals over eighty-five are female. Women need long-lasting retirement funds, but, compared to men, most of them have earned less and spent fewer years in the workforce.
Our current Social Security program includes adjustments for disparities in pay, but privatized Social Security programs would not. Private savings accounts and investments would likely not provide women, low-paid workers, or the unemployed with adequate retirement savings.
Women deserve equal pay for equal work.
Women deserve a government-run Social Security program that will not penalize them disproportionately, as a privatized system would.
Social and Psychological Difficulties
Many of the difficulties associated with getting older are psychological. While the majority of older people become happier as they age, rates of suicide, depression, and substance abuse among a portion of the elderly are far higher than the public appreciates. The suicide rate for individuals over eighty is higher than the teen suicide rate. However, according to the National Council on Aging,
state spending for community programs has been undermined by the current recession, resulting in a 10 percent cut, on average, to services to seniors. While the Older Americans Act includes provisions for lifeline outreach programs such as Meals on Wheels, many states have exceptionally long waiting lists and cannot properly execute the programs, and this leaves many seniors isolated.
The Older Americans Act was enacted in 1965 by Congress and was reauthorized and modified in 2006. The legislation supports older citizens’ health and independence through community programs, including Meals on Wheels, civic engagement programs, senior centers, transportation services, support for family caregivers, health promotion, disease prevention, and service training for employment for mature workers. These well-conceived programs can be highly effective, but citizens need to make sure that they are properly funded and executed. Nearly 80 percent of states report waiting lists for home-delivered meals, and more than 50 percent have waiting lists for personal care, homemaker services, and respite care. This is important: Dollars spent on OAA programs save taxpayers money in the long run because the programs stave off premature nursing home placements and reduce Medicare spending by preventing malnutrition and controlling chronic health conditions.19
