Notes

Outline

Work and economics in older adults

Relationship to other areas Focus of first part of course Focus of second part of course

Typical older couple Work history Income Social security Pension Investments/saving Expenses Compared to middle age Overall balance Importance of large expenses

Income for older adults Overall amounts Age effects Oldest old Opposite of what happens < 65

Factors affecting income

Age and poverty

Age and poverty Importance of including poor and near poor

Sources of income Social security Original intention Reality Availability over age 65 Earnings Assets Pension/social security Effect on old-old

Social security 3 types Old age and survivors insurance Disability insurance Medical insurance Old age and survivors insurance Age of eligibility Age of full eligibility Need vs. non-need based program Which is social security How social security income is determined

Financial war between generations? Contributions vs withdrawal from social security Previous cohorts Current cohort of older adults Anticipated future cohorts Other factors Number of retirees-baby boom generation Increased life expectancy

Effects on integrity of social security Viable as currently designed? Alternatives Increased contribution Better performance – stock market Delay full benefits Incentives for later retire War between generations? Should not concern social security Original intention

Medical insurance When eligible Two types Medicare –not need based Medicaid –need based Medicare What it covers What it does not cover

Medicaid Income requirements What it covers Psychological effects Going broke to live

Work and retirement Why important for studying aging Compare time spent with other activities Intrinsic job satisfaction Rigors of higher education Influence on extrinsic factors Effects of low intrinsic job satisfaction Health Interpersonal relationships Divorce Abuse Overall quality of life

Age and job performance General stereotype Mandatory retirement Data Overall productivity Overall costs to employer Absenteeism Accidents Overall performance ratings

Age and job satisfaction Implication Job satisfaction near retirement

Work problems and age Biggest fear Why concern Ability to find new job Ability to change career Age discrimination lawsuits

Retirement Criteria No full-time employment Income from previous employment Relative life change Increased importance 1900 vs. 1990 Current cohort of 20-year olds Years of education vs. years of retirement Years of child rearing vs. years of retirement

Negatives and positives Potential Negative Income Job satisfaction Social interaction Activity Positives Stress Leisure/hobbies Family

Attitudes toward retirement Do people want to retire early? Effects of outlawing mandatory retirement Why trend toward early retirement Attitudes toward retirement Number of retirees Activity availability Improved medical treatment

Factors determining when to retire Job satisfaction Very high and very low Mid-level satisfaction (most of us) Importance of physical abilities

Factors affecting retirement satisfaction Plan plan plan When to start Things to plan for Financial Example 10k invested at age 25 (10% avg. return) 452,593 Delay 20 years (start age 45) 67,275

Expenses vs. income in retirement

Finances and retirement Basic conclusions for most Some exceptions About 5% get only minimum ss (3,800/year) Old-old, women, minorities

Activity planning Relative importance for successful retirement Plan, plan, plan When have difficulty Work-related interests only Child-related interests only

Working after retirement Relative frequency Reasons

Life satisfaction and retirement