(4) Support of elderly parents. (5) Acquiring assets for financial independence in retirement. Although the needs of the age 45-plus population must be inferred from general census data and general knowledge about this population, specific data is available for Chicago's age 60-plus population. In the 1972 Chicago Needs Assessment Surveys of Older People and of the Tulnerable Elderly,' the problem areas, in order of priority by the elderly age 60-plus, were income, health care, police protection, housing, legislation, transportation. nutrition, employment, leisure time activities, and education. The vulnerable elderly are a subgroup of Chicago's noninstitutionalized elderly-those age 75 and over who either live alone or with another person aged 60 or over. One of the major problems confronting the older worker today is to maintain a satisfactory standard of living. For persons age 45-64, inflation makes it difficult or impossible to meet their major commitments. For those 65-plus, food, rent, and utilities—items that constitute a much larger part of their fixed income than other income groups-have been among the most inflationary items. This statement is highlighted by statistics which show that 26.3 percent of Chicago's age 60 and over population and 44.1 percent of the vulnerable group require additional moneys for necessities. Two factors work in concert to exacerbate this dilemma: (1) The reluctance of employers to hire older workers. (2) The penalty on earnings (in excess of $2,520 per year) imposed by the social security legislation. Who are the people who want to work and why? Although the human needs of all older workers are similar, employment is the main source of income for those age 45-64; whereas, for those 65-plus employment may be considered as supplemental income. Application for employment with the Illinois State Employment Service is one reflection of the desire to work. In the first quarter of fiscal 1975, ISES registered 16,441 applicants 45 and over or 14.4 percent of the State total unemployment figure (113,450). Of the total of 16,441 applicants, 2,882 individuals, or 17.5 percent, were placed in jobs; 788 were given counseling service; 124 were enrolled in job training programs; and 223 were given other support services. In fiscal 1974 ISES registered 71,078 applicants 45 years and over, or 16.5 percent of the State total unemployed (431,507). Of this number 10,146 individuals, or 14.3 percent were placed in jobs, 4,200 were given counseling service, 493 were enrolled in job training programs and 635 were given other support services. Note the comparatively small number of applicants who received counseling, on-thejob training and other support services. In fiscal year 1974, the entire FederalState employment service placed 355,100 persons age 45 and over in jobs. Mature Temps, a division of the American Association of Retired Persons, a private employment service for older people in Chicago, reports placement of 545 people in 1974; 66 percent, or 360 persons, were 45-plus. Of the total, 50 percent were 65-plus, 19 percent 60-65, 10 percent 55-60, 7.6% 50-55, and 7.4% 45-50. In the Mayor's Office for Senior Citizens Chicago Needs Assessment Surveys, 11.1% of the general sample of people age 60 and over would have liked a job for pay. Of the vulnerable sample (age 75 and over), 3.2 percent would have liked such a job. 3 Under the sponsorship of the National Council on the Aging, Louis Harris and Associates has just completed a definitive study of people 65 plus, as well as the rest of the public age 18-64, concerning national attitudes on the elderly and aging. This study collated data from 4,254 in-person interviews. The sample of the 65 and over group is said to be the largest in any survey research project: 3,000 individuals in total-1,033 who are 65-69 years of age, 1,295 who are 70-79, and 469 who are 80 years of age and over. While the survey results are yet to be reported, Mr. Harris gave the following information from them in an October 1974 talk to a Detroit conference of the National Council on the Aging. -In the area of employment, 18 percent of the 65 and over group is still part of the labor force: 3 percent are employed full time, 9 percent are employed 1 The Chicago Needs Assessment Surveys of Older People and the Vulnerable Elderly, Final Report. Mayor's Office for Senior Citizens, Chicago, March 1974. Ibid., p. 15. 3 Ibid., p. 60. Ibid., p. 113. part time, and 6 percent are looking for work and are unemployed. While 12 percent of all people 65 and over are employed, a much higher 18 percent in the 65-69 age group are working. -Among the majority who have retired, 37 percent said they did not stop working by choice. -Those 65 and over who did not want to retire and would like to be employed add up to 4.4 million. -If they were counted in the unemployment columns, we would have close to 10 percent in unemployment instead of just over 6 percent today. -As many as 4 in 10 of all people 65 and over would like to be actively engaged in work. -8 out of 10 mature citizens who are presently working have no intention of retiring voluntarily. Several problems affect the capacity of various systems to respond to the older workers' desire for employment. Primary among these problems is the fact that no social service system can control the job market and guarantee the availability of jobs. If high unemployment rates, discriminatory retirement and hiring practices are also recognized as a reality of the job market, the parameters of the problem become clear. TABLE 3.-INCOME IN 1969 OF PERSONS BY AGE AND SEX, CHICAGO SMSA Lack of sufficient income continues to be the most important problem facing the majority of elderly in this country. Even with recent increases in social security benefits, 3 million elderly, or about one out of every six persons over 65, have an income below the poverty index as defined by the Social Security Administration. Include the estimated 2 million elderly persons who would be in the poverty category if they did not live with families whose incomes are above the poverty threshold, and the number of impoverished elderly swells to 5 million— roughly one out of every four persons over 65. The poverty index, as defined by the Social Security Administration, is an absolute minimum standard projected to be $2,100 a year for a single elderly person and $2,640 for an elderly couple. Millions of older people who are not classified as poor according to this standard are living on incomes that are insufficient to meet their needs. Although income for the aged is derived from a variety of sources, retirement benefits remain their primary source of funds. The relative importance of income from employment showed a steady decline during the decade 1958-67, dropping from 37-38 percent to 29-30 percent. Increased life expectancy and earlier retirement mean that savings must be stretched over a longer period of time and thus, perhaps, is becoming a less significant source of income. Social security benefits, originally established as a supplement to private pension income, are the main source of income for the older population. Even with the recent increases, social security benefits provide an income below the Bureau of Labor Statistics' budgets for retired couples." Among the respondents to the MOSC 1972 needs assessment survey, many reported several sources of income." The most commonly mentioned sources are: (1) Social security (74.3 percent). (2) Savings (46.1 percent). (3) Pensions (33.6 percent). (4) Investments (23.8 percent). (5) Wages (14.1 percent). (6) Family, relatives (9.8 percent). (9) Disability (2.9 percent). (10) Unemployment compensation (0.5 percent). Other income supplements are: (1) Workmen's compensation. (2) Life insurance proceeds. (3) Major medical insurance benefits. (4) Private annuities. (5) Veterans benefits. (6) Income from assets. Social Security.-In December 1972, the average monthly social security benefit was $157.10 for a retired worker and $272.50 for a retired worker and wife. The average benefit for a widow or widower was $137.80. The average monthly benefit to special age 72 beneficiaries was $58. Supplemental Security Income.-The number of persons receiving federally administered payments in Illinois, September 1974, was: Total persons, 131,219; aged, 43,897; blind, 1,662; disabled, 85,660. Combined Federal SSI payments and federally administered State supplementary payments to aged, blind, and disabled in Illinois, September 1974, were: Total, $14,544,000; Federal SSI $13,218,000; State supplementation, $1,325.000. Average monthly amount of combined Federal and State payments in Illinois in September 1974 was: All persons, $110.84; aged, $76.56; blind, $128.23; disabled, $128.07. Usefulness: According to pollster Louis Harris, reporting last October on his national survey on aging, 74 percent of all senior citizens say they would prefer to spend most of their time with people not of their own age, but with people of all ages. They report they perform a whole host of useful services: 34 percent run errands for their children or grandchildren, 39 percent give advice on how to deal with life's problems, 45 percent help out by giving their children money, 54 percent take care of small children in the family, 68 percent help out when someone is ill, and 90 percent help out their offspring by giving them gifts. For many persons, usefulness to society is demonstrated by employment. Were increased work opportunities made available to the elderly, it is estimated that an additional $10 to $12 billion would be added to the economy.* 8 Barriers to Employment and Attitudes Toward the Older Worker Impact of Technology.-New technology does not necessarily cause unemployment. The employer's reluctance to train older workers for new positions does. Job Obsolescence.-Jobs are phased out of existence due to changing demands. Workers trained in too limited an area find their skills are not broad enough to encompass new requirements. Lack of Education.-The emphasis on higher education in employment practices leaves the older worker at a disadvantage. Table 2 points out that almost half of the heads of families 45-64 have completed less than 4 years of high school. Approximately 10 percent have less than 8 years of grammar school. Myths and Negative Employer Attitudes.-A major obstacle confronting an older worker in his search for employment is the prevalence of "myths" regard Three Budgets for a Retired Couple, U.S. Department of Labor, Autumn 1972, Office of Information, Washington, D.C. Summary: Chicago Needs Assessment Survey of Older People, Mayor's Office for Senior Citizens, Chicago, September 1972. p. 3. 7 Social Security Bulletin, U.S. Department of Health, Education, and Welfare, January 1975, vol. 38, No. 1. Aging, U.S. Govt. Printing Office, Division of Public Documents, No. 222, Washington, D.C., p. 3. ing the aging process. Their presence causes a rejection of his efforts to obtain work. Examples of common myths are: (1) An older worker becomes ill more frequently. (2) He is not flexible. (3) There are radical changes in performance due to aging. Negative employer attitudes also present a formidable barrier, for example: (1) An older worker is not a good subject for promotion. (2) He refuses to accept less money than he previously earned. (3) The job is too demanding. The myths and negative attitudes have been disproven. Excellent proof of this is the following chart of a survey conducted by the National Association of Manufacturers. 1 Employment Problems of the Older Worker in Job Discrimination. U.S. Department of Labor, Bureau of Labor Statistics. Bulletin No. 1721. p. 20. Note: Age Discrimination.-The Age Discrimination in Employment Act (ADEA). 1967, prohibits discrimination against workers 40 to 65 yr of age. The purpose of this act is to: (1) Promote employment of older persons based on ability rather than age. (2) Prohibit arbitrary age discrimination in employment. (3) Protect workers from age discrimination by employers that have 25 or more employees. Effect of Age Discrimination Legislation. In a survey of employed persons in 1969, over half a million workers 45 years of age and older indicated they had experienced discrimination on the job. The law regarding discrimination in employment has been successful only in minimizing overt acts of discriminatory practices. Affirmative Action and Low Effort of Government Agencies.-The U.S. Department of Labor asked for $1,755,000 for funding in fiscal year 1975-a funding level which would support enforcement activities of the ADEA at the 1974 level, which was unsatisfactory. In 1973, the U.S. Senate Special Committee on Aging recommended legislative action in the following areas of ADEA: (1) Increase enforcement; (2) Extend coverage; (3) Reevaluate the age 65 upper limit; (4) Study involuntary early retirement; (5) Reduce the length of time required to investigate cases; and (6) Provide adequate investigative manpower. The following is a record for fiscal year 74 of ADEA action:10 p. 18. Survey of Working Conditions, University of Michigan, Survey Research Center, 1971, 10 U.S. Dept. of Labor, Wage and Hour Division, Washington, D.C., December 1974. The Illinois Age Discrimination Act prohibits unjust discriminaion in employment because of age. However, according to Howard Eglit, Midwest legal director of the American Civil Liberties Union (ACLU) this act is in total disuse. Age Based Mandatory Retirement.—The practice of forced retirement because of chronological age requires reevaluation. Reasons most often cited to justify compulsory retirement as a means of removing older people from the work force are simply not valid. Partial responsibility for setting the retirement age at 61 must be attributed to insurance plans which have been developed in conjunction with social security. Since social security benefits by and large become availabie at 65, this age has become accepted as the magic retirement figure. "There must be acceptance of the (1971) White House Conference on Aging goal of free choice between continuing in employment as long as one wishes and is able, or retiring on adequate income with opportunities for meaningful activities." So said Senator Edward Kennedy on February 6, 1973. The Elderly Are Fighting Back.-A 65-year-old biology teacher has refused to accept mandatory retirement from a Lansing, Ill., high school. She filed suit on April 4, 1974 in Federal court, claiming a violation of her constitutional rights. The court upheld the practice of mandatory retirement. The case is under appeal. A 63-year-old school superintendent sued to prevent his mandatory retirement at age 65. A negative decision was handed down January 17, 1975, based only on the question of "ripeness"-too many things could happen before the plantiff became 65, such as dying, quitting, etc. The judge stated that he had grave doubts as to whether mandatory retirement is constitutional. However, on February 24, 1975, the U.S. Supreme Court declined to upset the mandatory retirement age of 70 for Federal employees. Apparently mandatory retirement. as an issue, is in a state of flux. On May 31, 1974, another opinion was delivered by the U.S. district court, State of Massachusetts, in a mandatory retirement suit. An officer in the state police was forced to retire at age 50, after 20 years of service. The court struck down the Massachusetts legislation as discriminatory on the basis of age distinction. The subject of compulsory retirement practices among Chicago area employers was included in the 1974-75 Personnel Practices and Fringe Benefits Survey by the Chicago Association of Commerce and Industry. As shown on table 5, more than 50 percent of all employers required retirement at age 65. III. 1 "1974-75 Personnel Practices and Fringe Benefits Survey," Chicago Association of Commerce and Industry, Chicago, The American Medical Association has voiced its opposition to mandatory retirement because of age, saying the decision should rest only on an individual's ability and desire to work. The Case Against Age-Based Mandatory Retirement.—The sharp reduction in income and the downward adjustment in living standards occasioned by retirement create undue hardships. Compulsory retirement tends to disregard important individual differences in capacity as well as differences in job requirements. It ignores the productive potential of people and deprives them of the social and occupational significance which results from work. The argument that compulsory retirement is a convenient procedure for the promotion of younger employees overlooks the advantages of selective employment and utilization of older persons. Compulsory retirement is costly and wasteful for the company, the individual. and the economy. |