The aging of global populations poses a challenge to retirement income programs, to meeting the challenges of skills shortages and to the economic health of many nations. Take a look at what a few countries are doing to meet the economic and societal challenges of their aging nations.

CANADA – The Government has committed to encourage phased retirement. Building off issues first raised at the Forum of Generations held in 2004, the Government has reaffirmed its commitment "to encourage phased retirement in pension plans so as to keep individuals nearing the end of their career working for a longer time."

FRANCE - Since the mid-1990s, France has restricted access to publicly funded early retirement schemes. A decisive step to encourage workers to remain active longer was taken with the 2003 pension reform, which raised the contribution threshold for entitlement to a full pension. It also introduced a bonus for those ready to work beyond the standard retirement age.

ICELAND – Bet you didn't know that it is Iceland that employs (percentage wise) the largest number of mature workers in the world! Their official "retirement" age is 67. As I understand it, healthy people generally work until then while experiencing less of the biases and myths surrounding their ability to contribute throughout their lifetimes.

JAPAN - The world's most rapidly aging society, reported that as of April 2006, their mature worker policy now allows all employees who wish to work past retirement an opportunity to be rehired after age 60 at more-flexible hours and pay, and often in a different job. The perspective was to raise the eligibility age and reduce benefits to maintain pension solvency.

SWEDEN – The Swedes changed from a traditional pay-as-you-go defined benefit plan (like USA's Social Security) to a system where benefits are aligned with contributions. Sweden has taken on some of the most significant reform in the developed countries because the changed structure rewards longer labor force participation.

UNITED KINGDOM – The UK has revised its benefit formula to raise the annual incremental increase for those who defer drawing their pensions. They intend to discourage early retirement by rewarding continued employment. In the meantime, as in the USA, three-quarters of Britain's largest companies have closed their defined-benefit funds to newly-hired employees, offering instead defined-contribution schemes.

WHAT IS OUR FEDERAL GOVERNMENT DOING?

In 2003, the U.S. General Accounting Office wrote to the ranking minority member of the Special Committee on Aging about the serious economic and labor force challenges posed by an aging America. They addressed the challenges that ranged from growing fiscal pressures in national pension systems to potential economic strains due to shortages of skilled workers. The other developed countries they studied supported the premise that older workers must be part of the solution to mitigate problems posed by aging populations. Again, in 2005, the White House Conference on Aging convened representatives from the public and private sectors to discuss the same challenges and we await outcomes.

What has been done so far? Not much relative to fixing the deficits in our social systems. As for Social Security, Medicare and Medical deficits as well as ADEA reform, some think the government is waiting for the next group of elected officials to tackle the problems. Congress is considering a provision that encourages retirement savings by low and moderate-income individuals through a tax credit. The Feds have tightened the noose around corporations' necks in an attempt to ensure sufficient funding by those who seek to continue to offer pensions. Read on… but remember just one more little thing…The Pension Benefit Guaranty Corp., the federal agency that insures the private pensions of 44 million workers, reported in early 2006 that their own 2005 deficit would total $22.8 billion.

READY OR NOT, THE AGE TRAIN IS GAINING SPEED…
In 2002, the Census Bureau estimated that there were 61 people over age 55 and these numbers are projected to grow to 103 million by 2025. How are organizations responding to pension issues? What NEW directions are some organizations taking?

HOW ARE AMERICAN ORGANIZATIONS' RESPONDING?

An August, 2005 survey by Price Waterhouse Coopers showed that:

WHAT ARE THE AMERICAN INNOVATORS OF THE FUTURE DOING?
Some early adapters are taking the lead in the journey to the future where 4 generations will continue to share the workplace! These organizations, and their smart leaders, are representative of a growing number of public and private sector partners that are actively planning to use the talent of traditionalists, boomers, Gen X'ers and Gen Y'ers. Please "tip your hat" to a few of these early adapters.

A Tip of the Hat to the COUNTY SUPERVISORS OF SAN DIEGO – for developing and hosting the upcoming Aging Summit Conference at the Town & Country Convention Center on Friday, June 2, 2006. The main theme of the conference will focus on the importance of engaging the maturing workforce to build an economic bridge to the future. Leaders from San Diego organizations will participate in panel discussions and yours truly will keynote. To register, or for more information about the Aging Summit, please call 1-800-501-3495.

A Tip of the Hat to Daimler/Chrysler, a USA/German co-venture, whose share of over-45 workers will rise from 41 per cent in 2002 to 68 per cent in 2011, has set up an Aging Workers Task Force, made up of human-resources managers and health counselors whose main job is to make sure that employees stay productive longer.

Tip Your Hat to IBM – for launching a $15,000 program to encourage each eligible (qualified) long-term employee to transition into teaching science and math. Now that beats receiving a gold watch any day!

Tip Your Hat to the LA City Workforce Investment Board - for their recent Conference in which they publicly touted the need for public and private sector partnerships to address the impact of LA's changing workforce. Another tip of the hat for their public declaration that the mature workforce is the "greatest untapped pool of labor in a market that needs them."

Spherion – This is my opportunity to publicly tip my hat to my employer, Spherion, for their leaders' foresight in developing a tight knit and highly specialized Human Resources consulting team that supports the many clients of the firm's large staffing and recruiting divisions with a variety of consulting options. One of their important goals is to help organizations design and implement customized workplace solutions in the areas of Recruiting, Revitalizing and Retention of their mature workforces. I am thankful for their support of our shared vision for the future.