Satisfaction and Engagement in Retirement
[28 July 2005 - Urban Institute] Many older workers look forward to retirement as the next phase in their lives. Some see retirement as a time to relax, travel, spend time with their families, and pursue hobbies. Others see it as an opportunity to engage in such productive activities as working part-time or volunteering. Yet retirement does not always turn out as people expect. Older adults without definite retirement plans may find themselves bored or depressed. Even those with specific retirement goals may experience unanticipated events, such as the onset of health problems or the need to care for a sick spouse or parent. Older adults' ability to pursue their retirement dreams can affect their satisfaction with retirement. Indeed, while the majority of older adults in the 2002 Health and Retirement Study (HRS)1 expressed high levels of satisfaction with retirement (61.5 percent), others said they were only somewhat satisfied (32.9 percent), and some reported dissatisfaction (5.6 percent). Many studies find that participating in productive activities at older ages is associated with better physical and mental health (Lum and Lightfoot 2005; Luoh and Herzog 2002; Morrow-Howell et al. 2003) and lower mortality (Luoh and Herzog 2002; Musick, Herzog, and House 1999). Although no one has considered the relationship between productive activities and retirement satisfaction, the two may be directly related. One study reported that 58 percent of volunteers said an important reason for helping others was to render their own lives more satisfying (Kutner and Love 2003). Engagement�defined in this series as time spent in paid work, formal volunteering, informal volunteering, and caregiving activities�could also relate to retirement satisfaction indirectly, for example, through increased physical and mental health. This brief analyzes patterns of engagement among retirees and how engagement relates to their retirement satisfaction. Data are from the 2002 HRS on adults age 55 and older who describe themselves as completely retired.2 The results show that engaged older Americans are more likely to be very satisfied with retirement than unengaged older adults�independent of age, sex, race, marital status, education, mental and physical health, and income. Retirees who provide only caregiving, however, are significantly less likely to be very satisfied than uninvolved retirees. The likelihood of being very satisfied with retirement increases with hours of engagement, but only up to a certain point. ...

Older Adults' Engagement Should Be Recognized and Encouraged
[28 July 2005 - Urban Institute] Older adults enhance society in many ways. While many engage in paid work, many others move from career jobs into unpaid activities that contribute to the public good. Many volunteer through formal or informal channels, providing help to neighbors and friends. Many older adults care for their frail parents, disabled spouses and children, and young grandchildren. Some older adults combine paid work with other activities. This brief, the first in a series, summarizes the types and intensity of engagement among adults age 55 and older in 2002. We define engagement as time spent in paid work, formal volunteering, informal volunteering, and caregiving activities. This brief also shows how engagement varies by age and individual characteristics. Future briefs will focus on particular types of engagement, the relationship between engagement and retirement satisfaction, and the economic value of these activities. ...

Can Rich Countries Afford to Grow Old?
[15 July 2005 - The Brookings Institution] Observers in many industrialized countries believe population aging represents a serious economic threat. Increases in the percentage of the population past retirement age may impose unsustainable burdens on future workers. Either taxes or government debt will have to rise substantially to pay for old-age income support. This paper considers the extent of these burdens and corrects the widespread impression that the burdens are unsupportable. Population aging means that contributions needed to support the retired elderly must rise. But this extra burden will be at least partly offset by a reduced need to support the dependent young, who will become relatively less numerous. The extra burden of an aging population would be smaller still if labor force participation rates among the working-age and elderly populations increased. Indeed, employment rates among the nonaged have risen in nearly all the industrialized countries as a growing percentage of women has entered the work force. Many countries, including the United States, have adopted policies to encourage work among people past the traditional retirement age. ...