In 2018 the baby-boomer generation will be reaching retirement age on a grand scale. The boomers are the most successful, most confident and most individualistic generation that ever set foot on Earth. They are also about to become the longest-lived. Across the OECD, someone who is now 65 can look forward to another 20 years of life on average. The share of over-65s in the total population is already 16%, and is due to rise to 25% by mid-century.
But although many of the boomers have enjoyed enviable lives, they are now running into a collective problem. In a world focused on youth, older workers are often snubbed. As a group, the boomers are financially comfortable. Many of them can look forward to, or are already enjoying, pensions far more generous than their children can expect. But some will need to go on working to make ends meet. Many will also want to carry on because they actually enjoy work.
But employers tend to shun older workers because they consider them physically and mentally less vigorous, less good at working with new technology. To prove them wrong, boomers can resort to setting themselves up as self-employed consultants, but many give up on paid jobs altogether and work in the voluntary sector instead.
An older person will bring less physical strength to a job and may be slower. But often employers are just biased. Physical decline may be counteracted by technology, and slower reactions are frequently outweighed by knowledge and experience. Seasoned workers have skills that employers are finding hard to replace; in Germany companies retain and recruit older engineers. Older workers are in many cases more conscientious than younger ones, and they do particularly well as part of mixed-age teams.
So what can be done to avoid wasting older workers’ potential? Since age discrimination is based on prejudice, it needs to be fought. Outlawing it is a good start. It is not enough on its own, but it sets the tone. Another signal is gradually raising the minimum age for drawing the state pension, which many countries are already doing.
But the biggest need is for a change in attitudes. Being more careful with language would help. So would a more enlightened approach to training. Employers often pass over older employees for courses. But if older workers do not update their skills, they will perform less well. Harvard and Stanford have recently introduced one-year programmes to prepare high-flyers over 50 for a career change late in life. Most importantly, there needs to be give and take on both sides. People working past the age of retirement typically want more flexibility. But in return they also need to ditch their expectations of ever-rising pay and seniority, and learn to take orders from younger people. Many boomers may struggle with that.
In many walks of life older folk are already trusted to do a fine job. Warren Buffett, 88 in 2018, is widely acknowledged to be good with money. The average age of FTSE 100 CEOs is 54. Are they old enough?
ADAPTED FROM THE ECONOMIST/BY BARBARA BECK/EDITION THE WORLD IN 2018,DEC 2017