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![Page 1: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/1.jpg)
The Process of Participation and Phased Retirement:
Evidence from Mature-Aged Workers in Australia
The Process of Participation and Phased Retirement:
Evidence from Mature-Aged Workers in Australia
Jacqueline M. Drew & Michael E. DrewSchool of Economics and Finance
Faculty of BusinessQueensland University of Technology
Thursday, 17th May, 2007Productive Ageing Forum
![Page 2: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/2.jpg)
1. Aims of the Study1. 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:
1. To identify how to increase the participation of mature-aged workers in the labour market;
2. To identify barriers to participation; and,
3. 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).
![Page 3: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/3.jpg)
SEM 1: ParticipationSEM 1: Participation
1. Pre-retire income2. Source of current income3. Pre-retire income satisfaction4. Pre-retire economic well-being5. Planning for retirement6. Organisational programs7. Stereotypes of older workers8. Organisational commitment9. Job satisfaction10. Work centrality11. Attitudes towards retirement12. Pre-retire health status
Economic
Psychological
1. Multiple Group SEM of
Participation
(Not-retired/retired)
Male/Female
Age cohorts
![Page 4: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/4.jpg)
SEM 2: Phased RetirementSEM 2: Phased Retirement
13. Voluntariness of retirement
14. Post-retire. econ. well-being
15. Pre-retirement prep. outcomes
16. Spousal relationships
17. Retirement concerns
18. Satisfaction with retirement
19. Retirement Adjustment
20. Post-retirement health status
Economic
Psychological
2. SEM of Phased Retirement
(Retired only)
Male/Female
Age cohorts
The SEMs are estimated with EQS Version 6.1, using maximum likelihood as the estimation method.
![Page 5: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/5.jpg)
4. Methodology4. 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 Findings17 Key Findings
1. Inverse relationship between economic well-being and participation
2. Participation, policy distortions and the replacement ratio
3. Job search strategies and participation4. Consumer preferences, participation and
psychology5. The positive relationship between stereotypes and
participation6. The positive relationship between organisational
programs and participation 7. Targeted strategies for female mature-aged workers
and participation8. The barrier of economic status
![Page 7: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/7.jpg)
9. Emphasis on financial planning for retirement as a barrier
10. Stereotypes and the barrier of perception11. Employment type barriers to phased retirement12. Recruitment barriers for mature-aged workers13. Organisational benefit of implementing mature-
aged worker programs14. Program costing and administration15. Managing higher employment costs of mature-
aged workers16. Individual economic well-being as a benefit17. Individual benefits related to psychological well-
being
![Page 8: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/8.jpg)
Multiple Group Model of Mature-aged Worker Participation for the Not Retired/Retired Group – Final Model
Multiple Group Model of Mature-aged Worker Participation for the Not Retired/Retired Group – Final Model
Pre-Retirement Health Status
Stereotypes of Older Workers
Pre-Retirement Economic Well-Being
Attitudes to Retirement
Org Programs for Older Workers
PersonalOrganisational
Attitudes
Organisational Commitment
JobSatisfaction
WorkCentrality
Plans for Retirement
0.15*/0.13*
0.20*/0.18*
0.77*/0.78*
0.73*/0.71*
0.78*/0.74*
0.06*/0.09*
0.02/0.17*
0.17*/0.17*
-0.07*/-0.08*
-0.36*/-0.34*
Not Retired Beta Weight/Retired Beta Weights
Greater concerns with economicwell-being is predictive of less positiveattitudes to retirement
More positive org attitudes are predictive of less positiveattitudes to retirement
More positive stereotypes are predictiveof more positive org attitudes
Greater availability of orgProgarms is predictive of morePositive personal org attitudes
More positive stereotypes are predictiveof more positive attitudes to retirement (retired grp only)
Pre-Retirement Health Status
Stereotypes of Older Workers
Pre-Retirement Economic Well-Being
Attitudes to Retirement
Org Programs for Older Workers
PersonalOrganisational
Attitudes
Organisational Commitment
JobSatisfaction
WorkCentrality
Plans for Retirement
0.15*/0.13*
0.20*/0.18*
0.77*/0.78*
0.73*/0.71*
0.78*/0.74*
0.06*/0.09*
0.02/0.17*
0.17*/0.17*
-0.07*/-0.08*
-0.36*/-0.34*
Not Retired Beta Weight/Retired Beta Weights
Greater concerns with economicwell-being is predictive of less positiveattitudes to retirement
More positive org attitudes are predictive of less positiveattitudes to retirement
More positive stereotypes are predictiveof more positive org attitudes
Greater availability of orgPrograms is predictive of morePositive personal org attitudes
More positive stereotypes are predictiveof more positive attitudes to retirement (retired grp only)
![Page 9: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/9.jpg)
Full Model of the Phased Retirement Process for the Retired Group – Final Model
Full Model of the Phased Retirement Process for the Retired Group – Final Model
Pre- Retirement Health Status
Plans for RetirementStereotypes of Older
Workers
Pre- Retirement Economic
Well- Being
Post- Retirement Health Status
Post- RetirementEconomic
Well- Being
Attitudes to Retirement
Org Programs for Older Workers
PersonalOrganisational
AttitudesOrganisational Commitment
JobSatisfaction
WorkCentrality
RetirementConcerns
SpousalRelationships
Pre- RetirementPrep. Outcomes
RetirementAdjustment
Satisfaction withRetirement
Voluntariness of Retirement
0.18*
0.19*
0.18*
0.78*
0.69*
0.73*
0.75*
0.11*
0.14*
0.08
0.00
0.05
- 0.30*
- 0.25*
- 0.21*
0.79*
0.06
0.17*
0.29* 0.10
-0.06
-0.04
- 0.24*
- 0.28*
0.82*
0.90*0.42*
0.68*
Pre- Retirement Health Status
Plans for RetirementStereotypes of Older
Workers
Pre- Retirement Economic
Well- Being
Post- Retirement Health Status
Post- RetirementEconomic
Well- Being
Attitudes to Retirement
Org Programs for Older Workers
PersonalOrganisational
AttitudesOrganisational Commitment
JobSatisfaction
WorkCentrality
RetirementConcerns
SpousalRelationships
Pre- RetirementPrep. Outcomes
RetirementAdjustment
Satisfaction withRetirement
Voluntariness of Retirement
0.18*
0.19*
0.18*
0.78*
0.69*
0.73*
0.75*
0.11*
0.14*
0.08
0.00
0.05
- 0.30*
- 0.25*
- 0.21*
0.79*
0.06
0.17*
0.29* 0.10
-0.06
-0.04
- 0.24*
- 0.28*
0.82*
0.90*0.42*
0.68*
![Page 10: The Process of Participation and Phased Retirement: Evidence from Mature-Aged Workers in Australia Jacqueline M. Drew & Michael E. Drew School of Economics.](https://reader036.fdocuments.us/reader036/viewer/2022081821/5513bfad5503463a298b48dc/html5/thumbnails/10.jpg)
AcknowledgementsAcknowledgements 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