A new AARP long-term study shows that many workers ages 50 and over (26.9 percent of those surveyed) switch jobs and employers, and in the process often take pay cuts, give up pension and health care benefits, and face loss of managerial duties.
But many of the 1,705 workers surveyed over a 14-year period beginning in 1992 also said they dealt with less stress and enjoyed flexible work schedules in their new jobs.
And, apparently as a result, a staggering 91.3 percent of those surveyed said they enjoyed their work, an increase from the 79 percent who said they liked their work in their old jobs.
“Many older workers are ready to give up the long-time grind, and look for stimulating jobs with flexible schedules as they begin the process toward retirement,” said Susan Reinhard, senior vice president of the AARP Public Policy Institute on May 7 in releasing the new report. “The study shows dramatically that workers are putting a premium on reduced stress as they downshift a bit.”
“The current downturn presents a real bump in the road,” Reinhard added, “but, for the future, the findings are a welcome signal that workers 50 and over can really enjoy themselves while remaining productive in a vibrant economy.”
The new study was conducted for the AARP Public Policy Institute by The Urban Institute of Washington, and is titled: “Older workers on the Move: Recareering in Later Life.”
The AARP analysis is one of the most comprehensive ever undertaken on late-career change in the 50-plus cohort. It also stands out in that much of the previous research done on older career change focuses on what the report refers to as “upward occupational mobility, based on the assumption that people change their line of work to move into better-paying jobs.”
The study evaluates data compiled by the Health and Retirement Study (HRS) from 1992 to 2006. Designed by the University of Michigan for the National Institute on Aging, the HRS is a nationally representative long-term study that includes periodic interviews. The analysis tracks a sample of workers who were ages 51 to 55 in 1992 until 2006, when they were ages 65 to 69.
For this analysis, recareering involves a move to a new employer in a different occupation. (Terms such as “occupational change” and “career change” are used interchangeably with “recareering.”) An individual who took a new job with his current employer was not then considered a recareerer.
Those who became self-employed in their new job are included in the study. And the number who did so skyrocketed, based on the sample: 23.6 percent were self-employed in their new jobs, as opposed to only 11.5 percent in their old jobs.
The study also found that 50-plus career change is more common among men than women because women are less likely than men to continue working if they leave an employer at that age. The statistic for men recareering is 28.8 percent; 24.3 percent of older women made a career change, according to the survey.
Here are some other highlights of the study for both women and men:
• The median hourly wage (in 2007 dollars) fell in the new job to $10.86 from $16.86 in the old job.
• Employer-sponsored pensions covered 19.9 per cent in the new job, compared to 61.4 percent in the old job.
• Employer-sponsored health insurance covered 55.8 percent in the new job, compared to 69.6 percent in the old job.
• Pay and promotion decisions (managerial duties) were performed by 14.4 percent of the workers in the new job, contrasted with 22.3 percent in the old job.
On the other hand, there are these findings:
• Only 36.3 percent of those surveyed reported stressful work conditions in the new job, a sharp drop from 64.7 percent in the old job.
• A large group – 45.1 percent – said that they had a flexible work schedule in the new job, as opposed to 27 percent in the old job.
All in all, after outlining what some might view as positives and negatives of new jobs, the report found that an astounding 9l.3 percent said they enjoyed their work, up from 79 percent in the old job.
The report is available at www.aarp.org/ppi.
AARP is a non-profit, nonpartisan membership organization that helps people 50 and older have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50 and older Americans and the world's largest-circulation magazine with over 34.5 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50 and older; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our Web site, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
