4 a.principi-work after retirement - italy ifa prague

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4 a.principi-work after retirement - italy ifa prague

  1. 1. IFA 11TH GLOBAL CONFERENCE ON AGEINGINCOME SECURITY, SOCIAL PROTECTION/SOCIAL SECURITY AND POVERTY PREVENTION Prague, 28th May-1st June 2012 Work after retirement:Government and companies’ policy trends in Italy Principi A., Checcucci, P., Di Rosa, M. and Lamura, G. INRCA - Italian National Institute of Health and Science on Ageing Centre for Socio-Economic Research on Ageing Via S. Margherita 5, 60124, Ancona, Italy; e-mail: a.principi@inrca.it
  2. 2. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  3. 3. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  4. 4. Labour market EU 27 Employment rate of older workers (55-64 years) 75 Sweden Germany 70 Denmark Estonia 65 Finland United Kingdom 60 Netherlands Cyprus 55 Latvia Lithuania 50 Ireland Portugal 45 Czech Republic Spain 40 Bulgaria Austria 35 Slovakia France 30 Romania Greece 25 Luxembourg Belgium 20 Italy Poland 15 Hungary Malta 1999 2002 2005 2008 2011 SloveniaSource: Eurostat
  5. 5. Labour Market 34 OECD countriesEffective retirement age compared to official retirement age, 2004-2009 Source: OECD
  6. 6. Retired people working, in Italy (N) 2008-2011 _ + 2008 2009 2010 M F T M F T M F T55-59 134,870 72,581 207,451 131,373 74,904 206,277 115,080 71,373 186,45360-64 252,004 107,959 359,963 272,175 110,057 382,232 264,563 112,434 376,99765-69 198,995 62,660 261,655 201,426 65,057 266,483 189,095 63,766 252,86170-74 111,745 29,587 141,332 124,250 32,644 156,894 126,304 34,361 160,66575-79 44,299 11,532 55,831 48,850 12,408 61,258 49,188 12,870 62,05880+ 17,090 5,811 22,901 19,797 6,300 26,097 21,319 6,776 28,095TOT 759,003 290,130 1,049,133 797,871 301,370 1,099,241 765,549 301,580 1,067,12955+ Source: INRCA elaboration on INPS data
  7. 7. Retired people working: the role of gender• In 2010, working pensioners 55+ were 6.9% of total pensioners 55+ (15,342,012).• Retired workers men 55+ were 10.7% of total retired men 55+ (i.e. 7,130,880)• Retired workers women 55+ were 3.7% of total retired women 55+ (i.e. 8,211,132). Source: INRCA elaboration on INPS data
  8. 8. Work after retirement: data from surveys on individuals• BANK OF ITALY - SURVEY ON ITALIAN HOUSEHOLD BUDGETS (Banca d’Italia: Indagine sui bilanci delle famiglie italiane) – The surveys’ sample consists of approximately 8,000 families (24,000 individuals), distributed in about 300 Italian municipalities.• ISTAT – “CROSS SECTIONAL UDB” IT-SILC (ISTAT: Indagine sui redditi e le condizioni di vita delle famiglie IT- SILC) – The sample includes about 20,000 households and 50,000 individuals.• ISTAT - LABOUR FORCE SURVEY (ISTAT: Indagine sulle forze lavoro) – A sample of over 300,000 Italian families (about 800,000 individuals yearly in different wawes) distributed in 1,300 Italian municipalities is interviewed.
  9. 9. Work after retirement: prevalence in Italy (N) ISTAT IT- ISTAT-Data source Bank of Italy SILC Labour forceYear 2004 2010 2007 2010 2007 2011Total sample 20,581 19,836 45,133 40,836 171,496 163,578Total workers 7,183 6,864 19,891 17,698 61,922 56,205Working 2.7% 4.7% 5.4% 5.5% 0.3% 0.2%pensioners
  10. 10. Retired workers: main characteristics• Women are increasing;• Mostly married (63 to 80%) but divorced/separated are increasing;• High educated people are less represented;
  11. 11. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  12. 12. Work after retirement: individual drivers Indications from national experts and the literature Economic need: • 63% of retired people with pension income lower than 1,000 euros monthly; • One retired person in four has a pension income under 500 euros monthly; • Until January 2012, good substitution (wage/pension) rate: 80%; • Economic need of their adult children
  13. 13. Work after retirement: individual drivers Indications from the case studies Economic need: • Gastronomist counter operator in a Supermarket 73 years-old • Main reason for work after retirement (full-time contract): to help economically his 3 adult children with work/economic problems • Chorister in a lyric choir 65 years-old • Secondary reason for work after retirement (short fixed- term contracts): the supplemental income is very helpful
  14. 14. Work after retirement: individual drivers Indications from national experts and the literature a) Demand-driven opportunities: b) Personal interest in the work-desire to remain active; • Rewarding jobs; • High status jobs (top managers, directors, etc.); • Intellettual jobs (instead of hard and repetitive ones)
  15. 15. Work after retirement: individual drivers Indications from the case studiesa) Demand-driven opportunities• Professor in a University 66 years-old • An offer to retire being re-hired as pensioner, under better (income from work+new wage) financial conditions for him (flexible contract)b) Personal interest in the work-desire to remain active• Chorister in a lyric choir 65 years-old • Main reason for work after retirement (short fixed-term contracts): great passion for this job;• Gastronomist counter operator in a Supermarket 73 years-old • Secondary reason for work after retirement (full-time contract): the retired worker enjoys his work and considers himself as “the luckiest person in the world”.
  16. 16. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  17. 17. Organisational drivers Indications from the case studies• Economic: to reduce staff costs (University);• Regulatory: – Internal: internal rule who protect “seniors” (Choir); – External: to improve the performance in the light of the legislation (University);• Sensitiveness by the employer (Supermarket);• Work experience of the retired worker (Supermarket).
  18. 18. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  19. 19. Governmental policies• The full combination of employment and pension income is allowed from January 2009 (DL n. 112/2008 as enforced by Law n. 133/2008).• Flexible working opportunities:  Job on call (lavoro a chiamata) addressed to under 25 year-olds, over 45 year-old workers and older pensioners; the workers are at the employer’s disposal (full-time or part-time) and they are hired through typical seasonal contracts; Job sharing, implying that two workers should share/divide the same job The division of work can be both vertical (1 week each) or horizontal (both working some hours each in the same day). In case of firing or resigning of one worker the contract is automatically terminated for both, but the second worker can be shifted to a standard (full/part-time) contract. Job sharing cannot be used by Public Organizations;  Job placement contracts (contratto di inserimento), especially aimed at placing or replacing disadvantaged workers (among which over 50 year-old unemployed) in the labour market by providing individual training programs within a fixed-term job; Temping (lavoro interinale), which in case of contracts longer than six months, provides disadvantaged unemployed persons (including over 50 year-old ones) with individual replacement training programs. This measure can also be used for pensioners.
  20. 20. Governmental policiesExperiences from the case studies (organisations currently employing retired workers):1) Employers do not recognise any current governmental policies to support work after retirement;2) Employers do not wish any future governmental policies to this purpose;3) Employers suggest governmental policies to support work for young people (in October 2011 unemployment rate 29.2% vs 8.5% of all population)
  21. 21. Governmental policies: the “Fornero” reform Year Old-age pension Seniority pension/early (years of age) retirement* (Years of contribution) Men Women Men Women2012 66 62 42+1 month 41+1 month2013 42+2 months 41+2 months2014 42+3 months 41+3 months2018 66 662026 67 67* Economic disadvantages for those people who retire before 62
  22. 22. Economic conditions of future pensioners• The transition from the wage-based to the contribution- based system, will ensure that future pension income will be lower than in the past.• The pension substitution rate is going to fall from the current 80% to 60% of the last received salary.• The scenario is worsened by the fragmented and unstable careers who are building current workers, due to a labour market difficult to access, also in the light of the economic crisis.• This means that future pensioners will be poorer than current ones: probably they will no longer able to help their adult children in economic terms and they will need to work after retirement to a greater extent to survive themselves.
  23. 23. Governmental policiesThe impact of the “Fornero” reform on work after retirement• In the short term: – The increased staturory retirement age will probably lead to a decline of the phenomenon since there will be a retrenchment of pensioners who will enter later than in the past in their condition of retired people.• In the long term: – The low pension income of the “new pensioners” will probably lead to a considerable growth of the phenomenon due to economic need. An “incentive” to work after retirement
  24. 24. Contents of the presentation• National background data• Work after retirement: a free or a “forced” choice for individuals?• Organisational drivers• Relevant governmental policies• Conclusions and recommendations
  25. 25. Conclusions and recommendations (1/4) • “Not only for money”: to prevent pension inadequacy – After the enforcement of the 2012 pension reform, pension inadequacy is viewed as the main problem for future retired people. – A prolonged working life does not necessarily mean “less” retired workers in the long term, but simply older (and probably poorer) retired workers. – The government and social partners should consider right from now measures to both prevent pension inadequacy. – To combat undeclared work: this will increase their contribution and so the magnitude of their pension.
  26. 26. Conclusions and recommendations (2/4) • To combat intergenerational conflicts – Adult vs. older people • A category of mature, unemployed people have several difficulties to join the labour market. They are at risk of long term unemployment. Their working career is fragmented and their pension income will be very low. – Younger vs. older people • Youth unemployment is a very sensitive issue in Italy. Unemployment of younger people is high, and e.g. employers call for support to work for younger people. – Difficult to accept a promotion of work after retirement in this context: it is important to grasp the message that experience and skills of retired people are important, and that younger generations should not pay the cost of this in terms of difficulties to access the labour market.
  27. 27. Conclusions and recommendations (3/4) • Too few work after retirement for interest or pleasure? To improve working conditions. – All case studies underlined the importance of this driver (i.e. personal interest, pleasure), being in one case (i.e. the Choir) the main one. – The government, social partners and employers should strive to “go beyond” a pension reform: to improve working conditions of older workers before and after their retirement, through e.g. life-long learning, a better environment at work.
  28. 28. Conclusions and recommendations (4/4) • Dedicated policies more appealing for employers. – The evidence from case studies indicates that employers do not recognise measures supporting work after retirement in the Italian context: they do not know any policies or measures to this aim. – The government and social partners should consider this issue during collective bargaining, trying to implement measures more appealing for employers to hire retired people.
  29. 29. Thank you.

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