2020 Pension Research Council Symposium: Public/Private Partnerships for Longevity Risk Management Presented by: Tim Driver Amanda Henshon Working Longer Solves (almo most) Everything The correlation between employment, social engagement and longevity
1 Employment Social Longevity Engagement 2
2020 PRC SYMPOSIUM The Business Case For Older Workers • Lower turnover rate and increased workforce flexibility • Improved customer satisfaction • Augment diversity programs • More experienced 3
2020 PRC SYMPOSIUM Do Strengths of Older Workers Offset Possible Increased Costs? • Fallacy of displacing younger workers • Misperception that wages of older workers are significantly more costly • Retirement cost differential diminishing with shift from defined benefit to defined contribution plans • Healthcare continues to be more costly to employers for older workers when compared to younger workers, though differential is shrinking 4
2020 PRC SYMPOSIUM An Exception Exists: The cost to small employers for providing healthcare to older workers can be less than the cost of healthcare for employees under age 65 • Small employers are permitted to establish Medicare supplement plans in addition to standard employee healthcare plan • Employees age 65+ may file for Medicare parts A & B • Financial benefit to employees (lower deductibles, copayments, premiums) may incentivize employees • Employers benefit from significantly lower cost of Medicare supplement plans when compared to all-inclusive health insurance
2020 PRC SYMPOSIUM Societal Health Case for People Working Longer • Increased GDP • Provides both skilled and less-skilled labor in tight labor markets • Reduces cost and burden of caring for older adults • Shores up Social Security as workers continue to make contributions through payroll taxes 6
2020 PRC SYMPOSIUM Benefits to Older Workers Employment among older people may lead to as much as four times as much social interaction How many different people do you speak to in-person on an average weekday? Not currently employed Employed Source: RetirementJobs.com and Age Friendly Foundation. Based upon 1,438 Survey Respondents (2020)
1 Working Longer Solves (almo most ) Everything Employment Social Longevity Engagement 8
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