Aging Up!Valerie Rufo

VP, Care Management Services

Aging Up: the future of the American workforce

All of the advanced economies across the globe are facing the same phenomenon: their populations and their available workforces are getting older.

Japan and many countries in the Euro zone are now aging rapidly. The stresses this is placing on some of their pension and social services systems have become crises in recent months.

The US, which is already increasing its retirement age to 67, is not immune. More Americans are opting not to retire and to remain fully engaged in the workforce.

The aging workforce is a reality, but is it a threat or an opportunity? This presentationwill explore the facts behind the aging up of the American workforce and we will explore ways in which your partnership with Broadspire can help you to understand,accommodate and embrace your older employees in ways that benefit all parties.

Aging up: the cubing of America

In 1950, an age band diagram of the American population was a narrow pyramid. In 2050, it will be a fat cube.

This change in shape is having profound impacts on American employers.Dr Gary Anderberg

Inside the Cube

• By 2032 there will be more old people (over 64) than children (under 15).

• The over 64 portion of the population is the fastest growing segment at a rate of 120% by 2050 (compared to 35% for children under 15 and 28% for adults 15 to 64).

• Men who reach 65 this year can expect to live another 17 years and women can expect another 19 years.

• Today a 75 year old man faces the same mortality risk as a 68 year old man did in 1970. So– 75 really is the new 68.

Dr Gary Anderberg

Your Workforce inside the Cube

Dr Gary Anderberg

Demographics are Destiny Many more employees will have to remain in the workforce well past age 65.

Retirement is NOT an option

Dr Gary Anderberg

51% of all American households will not be able to retire at age 65/67 without a substantial reduction in their standard of living. Pensions, 401Ks, and other retirement financial vehicles are underfunded by $6,600,000,000,000*.

* Most conservative estimate; the real figure may be closer to $7.6T.

Older employees and health

Dr Gary Anderberg

• The prevalence of chronic disease in the 65+ population has generally remained stable.

• Hypertension and diabetes have increased slightly.

• The 75+ population is actually enjoying a decline in chronic disease which impacts ADLs.

Dealing with limitations

Dr Gary Anderberg

• In 2005 8% of all adults (18+) had some form of arthritis and about 1/3 had activity limitations. In 2030 the rate will be 9.3%.

• Obesity is equal opportunity. The prevalence of obesity is roughly the same, about 35%, across age groups and it has doubled in the years since 1974.

• Death rates in two primary disease groups, cancer and stroke, are declining.

Dealing with costs

Dr Gary Anderberg

Healthcare costs escalate rapidly with age, with the steepest increases seen in the 65+ age groups.

Older employees and dementia

Dr Gary Anderberg

As the prevalence of dementia continues to climb, so do the odds that older employees, including those in the 55 to 64 bracket, will be the primary caregiver for a parent or spouse.

Summary: we are now what we are going to be

Dr Gary Anderberg

• The basic shape of the American population is changing in dramatic ways

• People over 64 will soon constitute a very large part of the population and most of them will need to remain employed.

• This older population is healthier than in past years, but healthcare costs still rise significantly with age.

• The caregiver issue will become even more acute as the population ages.

• All of these forces will reshape the American workplace in a variety of ways.

Just the facts…….

Valerie Rufo

• By 65 years old there is less light entering the eye than at 21 years old

• Objects closer than 2 feet are difficult to see

• Hearing loss and loss of balance are common

• Taste and smell start to diminish in the 50s

• Sensitivity to touch diminishes

Just the facts…..

Valerie Rufo

• Bones are less dense

• Loss of muscle mass begins around 30

• Nerves conduct signals more slowly and nervous system’s response to injury is reduced

• At 65, 50% will have arthritis– 36% will have high blood pressure– 32% will have heart disease– 29% will have hearing loss

Consider……

Valerie Rufo

• Employee messages – clear & concise

• Consider flexible hours/days & job sharing

• Encourage healthy diet and exercise

Decreasing Risk

Valerie Rufo

• Improve lighting

• Clear pathways

• Install flat floor surfaces

• Provide easy-to-use desk accessories

• Provide easy access to restrooms

• Have “senior-friendly” cafeterias

• Improve lighting & remove obstacles in parking lots

Older employee RTW programs

Valerie Rufo

• Review accommodations and prepare worksite

• RTW program should be holistic

• Include psycho/social issues in discussions with injured employee

• Remember: Older workers have less turnover, less absenteeism, higher job satisfaction, are more dependable and experienced!

Aging up: the opportunity

The aging up of the American workforce presents employers with a tremendous opportunity.

A motivated workforce which is loyal, well trained, highly experienced and possessed of a deep institutional memory for problem solving and overcoming obstacles.

A workforce which has a few special needs which we understand and can meet when claimsdo occur.

A workforce which will thrive with a few simple, inexpensive workplace accommodations.

A workforce which understands the needs and attitudes of your aging customers.

A workforce that most of us will be part of in the fullness of time.

Aging Up!

Question

and

Answer