May 1, 2008
Myths and realities of the greying workforce
Via Economic Principals:
Myth: Given the growing retirement income challenge, people will have to work forever. Reality: If individuals worked full time until at least 66, they could enjoy a long and financially secure retirement, with incomes one-third higher than if they retired at 62.
Myth: Older workers will choose to work longer on their own. Reality: Most people retire as soon as benefits are available at age 62.
Myth: As baby boomers approach retirement, employers will embrace older workers. Reality: Many employers are lukewarm toward retaining older workers due to concerns that they cost too much, lack current skills, and don’t plan to stick around long.
Myth: Employers will quickly change their tune in response to labor shortage. Reality: Many employers with a high proportion of older workers are in declining industries. Others can tap global labor markets.
The original source is Working Longer: The Solution to the Retirement Income Challenge, by Alicia Munnell and Steven Sass. Update: Link fixed, thanks to a reader for pointing that out.
The average age of workers at the BMW Dingolfing factory is 47 (8 years more than the average age of all BMW workers). At Dingolfing, older workers get special treatment: ergonomic chairs, bigger PC screens, special shoes, regular daily breaks for gymnastics (there are wall-bars on the factory walls where workers exercise to strengthen their muscles), a physiotherapist is on call.
It’s planned in due course to extend this scheme to factories in A-Steyr and D-Leipzig. At BMW the percentage of workers aged over 50 will increase from 14 to 37 percent within the next 10 years. Older workers also have the option of taking annual sabbaticals
Posted by: J.J. | May 2nd, 2008 at 5:28 pm | Report this comment(up to 20 days, with some loss of pay) and BMW expects over 5′000 workers will do so per year.
“At Dingolfing, older workers get special treatment: ergonomic chairs, bigger PC screens, special shoes, regular daily breaks for gymnastics (there are wall-bars on the factory walls where workers exercise to strengthen their muscles), a physiotherapist is on call.”
So they are relatively cost-inefficient, is that what you’re saying?
Also, how does this square with the legislation prohibiting age-discrimination in the workplace?
Posted by: wowbagger | May 5th, 2008 at 9:02 am | Report this comment