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AARP Says Age Discrimination Robs $850 Billion from Nation’s Economy

Published in the Woonsocket Call on February 9, 2020

In 1985, my 71-year old father was ready to leave his job, looking for greener pastures. After working for Dallas, Texas-based Colbert-Volks for over 33 years as Vice President, General Merchandise Manager, he knew it was time for a job change.

After telling me of his desire to find a new employment, I told my father that he would bring over three decades of experience in the retail sector to a new company along with a vast network he had accumulated. I remember saying “You would be a great catch.” His curt response: “Nobody will hire me at my age.”

Thirty-five years after this conversation, AARP releases a report charging that age discrimination is still running rampant in America’s workplaces and it even negatively impacts the nation’s economy, too.

Last month, AARP and the Economist Intelligence Unit released a report, The Economic Impact of Age Discrimination, reporting that the age 50 and over population contributed 40 percent of the U.S. Gross Domestic Product (GDP) in 2018, creating 88.6 million jobs and generating $5.7 trillion in wages and salaries through jobs held directly or indirectly.

But older workers would have contributed a massive $850 billion more in 2018 to the GDP if they could have remained in or re-entered the labor force, switched jobs or been promoted internally, notes the AARP study.

AARP’s new study shows that the elimination of that bias in 2018 would have increased the contribution of the 50-plus cohort to the GDP from $8.3 trillion to $9.2 trillion. It also projects that the potential contribution of the older population could increase by $3.9 trillion in a no-age bias economy, which would mean a total contribution of $32.1 trillion to GDP in 2050.

“This important report shows the cost to the entire economy of discriminating against older workers,” said Debra Whitman, AARP’s Executive vice president and Chief Public Policy Officer in a Jan. 30, 2020 statement announcing the release of the 22-page report. “The economy in 2018 could have been 4 percent larger if workers did not face barriers to working longer,” says Whitman.

“Studies have shown that older workers are highly engaged, with low turnover, and often serve an important role as mentors,” Whitman added. “Their expertise helps businesses and pays big dividends for the economy as a whole. Employers who embrace age diversity will be at an advantage,” she says.

House Moves to Combat Age Discrimination

The groundbreaking AARP report comes on the heels of the House of Representative’s recent passage of HR 2030, “Protecting Older Workers Against Discrimination Act,” to combat age discrimination.

The House chamber’s action comes as older workers play an increasingly important role in the workforce. Estimates are that by 2024, 41 million people ages 55 and older will be in the labor force, nearly an 8 percent increase from the current number. In addition, next year the oldest millennials will start turning 40 and then will be covered by the Age Discrimination in Employment Act (ADEA).

The legislation, passing with bipartisan vote of 261-155, restores anti-discrimination protections under the ADEA that were weakened by the Supreme Court’s 2009 decision in Gross v. FBL Financial Services, Inc. The decision changed the burden of proof for workers to be the sole motivating factor for the employer’s adverse action, making it much harder for workers to prove age discrimination.

In the Senate, the bipartisan companion legislation (S.485) is sponsored by Senators Chuck Grassley (R-Iowa) and Bob Casey (D-PA).

“The House vote sends a strong bipartisan message that age bias has to be treated as seriously as other forms of workplace discrimination,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “Age discrimination is widespread, but it frequently goes unreported and unaddressed,” charges LeMond.

Thoughts on Age Discrimination

AARP’s new report includes survey findings gleaned from a study conducted last July and August, interviewing 5,000 people age 50-plus to identify how they have experienced age discrimination at work or while looking for work.

The researchers analyzed: involuntary retirement due to age bias; 50-plus workers involuntarily in part-time jobs; missed opportunities for wage growth; lost earnings following involuntary job separation; longer periods of unemployment compared to younger workers; and people age 50 and older who dropped out of the labor force, but want to continue working.

The study’s findings indicate that the age 50 and over labor force has grown by 80 percent since 1998, about 40 percent of workers age 65 over intend to continue working into their 70s. While 80 percent of employer’s support employees working into their later years, nearly two-thirds of older workers say they have experienced or seen age discrimination in the workplace.

As to gender, the study’s findings note that men who retire between ages 50 and 64 are most likely to feel that they are being forced into retirement because of their age. Older women bear the double burden of age and gender discriminate, say the researchers. Those age 50-64, especially women, experience longer unemployment than other groups

The study also found that lower-income workers are more likely to feel trapped in their present role as a result of age discrimination.

AARP’s report warns that “in order to benefit from age ‘inclusion,’ employers need not only to recognize age bias, but actually “actively” stop it; they need to “bust myths” about older workers, be it that they cost too much or are not tech-savvy; they need to recognize the value that experienced workers bring to the workplace, like their dependability and ability to problem-solve and remain calm under pressure, and they must build and support a multigenerational workforce.”

Final Thoughts

We have worked for years to raise awareness of valuing people in the workforce, regardless of age,” said AARP Rhode Island State Director Kathleen Connell. “This isn’t AARP rhetoric. Data repeatedly proves that age discrimination is not only is unfair to older workers, but something that also has a negative impact on the economy.

“Employers should take advantage of the best talent available without dismissing equally capable employees at a certain age or by choosing not to hire new workers simply because of their age,” Connell added. “Companies with a diverse cultural often laud that as a business asset. That philosophy should not exclude older workers. They can bring experience and wisdom into the mix and should be judged only on their performance.”

For information on AARP workforce-related resources, go to http://www.aarp.employers.

For a copy of AARP’s report, go to http://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2020/impact-of-age-discrimination.doi.10.26419-2Fint.00042.003.pdf.

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2050 and the Caregiver Dilemma

Published in the Woonsocket Call on April 22, 2018

The year 2030 marks an important demographic turning point in U.S. history according to the U.S. Census Bureau’s 2017 National Population Projections, released last month. By 2030, older people are projected to outnumber children. In the next twenty years, when these aging baby boomers enter their 80s, who will provide informal caregiving to them.

Almost three years earlier, in a July 2015 report, “Valuing the Invaluable: 2015 Update Undeniable Progress, but Big Gaps Remain,” the AARP Public Policy Institute warned that fewer family members will be around to assist older people with caregiving needs.

According to AARP’s 25-page report, coauthored by Susan C. Reinhard, Lynn Friss Feinberg, Rita Choula, and Ari Houser, the ratio of potential family caregivers to the growing number of older people has already begun a steep decline. In 2010, there were 7.2 potential family caregivers for every person age 80 and older. By 2030, that ratio will fall sharply to 4 to 1, and is projected to drop further to 3 to 1 in 2050.

Family caregivers assisting relatives or close friends afflicted with chronic, disabling, or serious illness, to carry out daily activities (such as bathing or dressing, preparing meals, administering medications, driving to doctor visits, and paying bills), are key to keeping these individuals in their homes and out of costly nursing facilities. What is the impact on care of aging baby boomers when family caregivers no longer provide assistance in daily activities?

“In 2013, about 40 million family caregivers in the United States provided an estimated 37 billion hours of care to an adult with limitations in daily activities. The estimated economic value of their unpaid contributions was approximately $470 billion in 2013, up from an estimated $450 billion in 2009,” notes AARP’s caregiver report. What will be the impact on the nation’s health care system without family caregivers providing informal care?

The Census Bureau’s 2017 National Population Projections, again puts the spot light on the decreasing caregiver ratio over the next decades identified by the AARP Policy Institute, one that must be planned for and addressed by Congress, federal and state policy makers.

Who Will Take Care of Aging Baby Boomers?

With the expansion in the size of the older population, 1 in every 5 United States residents will be retirement age. Who will provide informal caregiving in our nation with a larger adult population and less children to serve as caregivers?

“The aging of baby boomers means that within just a couple decades, older people are projected to outnumber children for the first time in U.S. history,” said Jonathan Vespa, a demographer with the U.S. Census Bureau. “By 2035, there will be 78.0 million people 65 years and older compared to 76.4 million under the age of 18.”

The 2030s are projected to be a transformative decade for the U.S. population, says the 2017 statistical projections – the population is expected to grow at a slower pace, age considerably and become more racially and ethnically diverse. The nation’s median age is expected to grow from age 38 today to age 43 by 2060.

The Census Bureau also observed that that as the population ages, the ratio of older adults to working-age adults, also known as the old-age dependency ratio, is projected to rise. By 2020, there will be about three-and-a-half working-age adults for every retirement-age person. By 2060, that ratio will fall to just two-and-a-half working-age adults for every retirement-age person.

Real Challenges Face Congress as the Nation Ages

Jean Accius, Ph.D., AARP Policy Institute’s Vice President, Independent Living, Long-Term Services and Supports, says, “The recent Census report highlights the sense of urgency to develop innovative solutions that will support our growing older adult population at a time when there will likely be fewer family caregivers available to help. The challenges that face us are real, but they are not insurmountable. In fact, this is an opportunity if we begin now to lay the foundation for a better system of family support for the future. The enactment of the RAISE (Recognize, Assist, Include, Support and Engage) Family Caregivers Act, which would create a strategy for supporting family caregivers, is a great path forward.”

Max Richtman, President and CEO of the Washington, DC-based National Committee to Preserve Social Security and Medicare, gives his take on the Census Bureau’s 2017 statistical projections, too.

“Despite how cataclysmic this may sound, the rising number of older people due to the aging of baby boomers is no surprise and has been predicted for many years. This is why the Social Security system was changed in 1983 to prepare for this eventuality. Under current law, full benefits will continue to be paid through 2034 and we are confident that Congress will make the necessary changes, such as raising the wage cap, to ensure that full benefits continue to be made well into the future,” says Richtman.

Richtman calls informal caregiving “a critical part of a care plan” that enhances an older person’s well-being. “While there currently are programs such as the Medicaid Waiver that will pay family members who provide caregiving support more can be done to incentivize caregiving so that loss of personal income and Social Security work credits are not barriers to enlisting the help of younger individuals to provide informal support services,” he says.

Adds Richtman, the Medicare and Medicaid benefits which reimburse for the home-based services and skilled nursing care “will be unduly strained ”as the diagnosed cases of Alzheimer’s disease skyrockets with the growing boomer population. He calls on Congress to “immediately provide adequate research funding to the National Institutes of Health to accelerate finding a cure in order to save these programs and lower the burdens on family caregivers and the healthcare system. “

Finally, AARP Rhode Island State Director Kathleen Connell, says “Our aging population represents challenges on many, many fronts, including healthcare, housing, Social Security, Medicare and, of course, caregiving. It would be nice to think everything would take care of itself if there were more younger people than older people. But that misses the point entirely. The needs of older Americans are a challenge to all Americans, if for no other reason than most of us end up with multiple late in life needs. And too many reach that point without savings to cover those needs.”

“It’s worth noting, by the way, that many of the solutions will come from people 50 and older — many of whom will work longer in their lives to improve the lives of older Americans. We need to stop looking through the lens of ‘old people’ being the problem and instead encourage and empower older Americans to take greater control over their lives as they help others,” says Connell.

“Congress needs to focus on common sense solutions to assure families that Social Security and Medicare are protected. The healthcare industry needs to face the medical challenges. And at the state and local level, we must focus on home and community-based health services,” adds Connell.

For details about the Census Bureau’s 2017 statistical projections, co to http://www.census.gov/newsroom/press-releases/2018/cb18-41-population-projections.html.

For more information about AARP’s July 2015 caregiver report, go to http://www.aarp.org/content/dam/aarp/ppi/2015/valuing-the-invaluable-2015-update-new.pdf.

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New Report Charges that States Disfranchise Older Voters

Published in Woonsocket Call on November 11, 2017

Since 1948, Wisconsin resident Christine Krucki had voted in every presidential election, but effectively lost her right to vote when her state enacted a voter ID law in 2011. An old Illinois photo ID and proof of her residence in Wisconsin was just not good enough to allow her to cast a vote.

Krucki did not have a birth certificate and was forced to purchase one for $20. However, her last name on the document did not match her current last name, changed when she married. She then paid $15 dollars for a copy of her marriage certificate , but that document listed her list name differently than her birth name, as she was adopted a different name after moving in with her stepsister when she was in her early 20s. Changing her name on the Illinois marriage certificate to match her birth certificate to solve the problem would cost between $ 150 and
$ 300.

The obstacles Krucki faced when attempting to exercise her right to vote are encountered by millions of older Americans when they attempt to vote. With the 2018 mid-term elections less than a year away, two U.S. Senators release a report detailing Krucki’s problem at the polls, and notes how suppressive state laws and inaccessible voting locations disenfranchise older voters.

Pushing Older Voters Away from the Polls

Senators Bob Casey (D-PA), Ranking Member of the Special Committee on Aging, and Amy Klobuchar (D-MN), Ranking Member of the Committee on Rules and Administration’s 15 page report, “Barriers to Voting for Older Americans: How States are Making it Harder for Seniors to Vote,” finds that strict voter identification (ID) laws, closure of voting locations, inaccessible polling places and limits on early voting and absentee ballots are preventing seniors and people with disabilities from casting votes.

“The right to vote is one of the fundamental pillars of American democracy. But, that right is under threat for millions of older Americans and individuals with disabilities across the nation,” stated Sen. Bob Casey in a statement announcing the report’s release. “This report brings awareness to the unique challenges that seniors face in exercising their constitutional right. We must work to ensure that all Americans have equal access to the voting booth.”

“The right to vote is the foundation of our democracy, but exercising that right is becoming harder and harder for many Americans, especially our seniors,” add Sen. Klobuchar, noting that long lines, inaccessible polling places, and strict voter ID laws have become barriers to voting for older Americans. “This important report shines a light on the hardships these voters face and proposes common sense solutions to make voting easier for everyone. We need to do more to restore Americans’ confidence in our political system. Our first step should be making it easier for their voices to be heard on Election Day,” he says.

The report, released on Nov. 2, also includes new information from the U.S. Government Accountability Office (GAO), which found that only 17 percent of the polling places it examined during the 2016 election were fully accessible. Most polling places GAO examined had one or more impediments from parking to the voting area and had accessible voting stations that could impede private and independent voting.

According to the report, suppressive voting laws and issues of accessibility affect tens of millions of older Americans and people with disabilities. In the 2016 election, 30 percent of the voters were between the ages of 50 and 64-years-old and 13 percent were 65 and older. Sixteen million (11.5 percent) of the 139 million votes were cast by people with disabilities. As the baby boomer population continues to age, these restrictions and barriers are likely to adversely impact more Americans.

In order to protect the voting rights of older voters and persons with disabilities, the report calls on Congress to ensure the full authorization and empowerment of all federal voting laws, which will make polling places accessible to older voters. Access to polls can also be increased by allowing opportunities for accessible early voting and absentee voting. Finally, it calls on limiting restrictions on voting and ensure that election laws fully consider the needs and abilities of older Americans.

Reflections from Rhode Island

“The depth of this issue varies from state to state,” says AARP State Director Kathleen Connell, who herself is a former Rhode Island Secretary of State. “I believe that older Rhode Islanders are well protected here, but we must be vigilant. Older Rhode Islanders are traditionally the most engaged voting group. Their voices are important and should not be silenced in any way.”

“I would add, however, that deliberate voter suppression is a threat to voters of all ages and the implications are as serious as they are obvious.

“When Voter ID legislation was passed in Rhode Island, we worked with then Secretary of State Ralph Mollis to set up photo booths to create ID cards for voters who did not have proper photo IDs. It was well received, but transportation was identified as a barrier to reaching some potential voters. Fortunately there were other remedies in place and, I have to say, no one contacted us saying they were prohibited from voting.”

Adds, Secretary of State Nellie Gorbea, this report presents a troubling situation across our country. The right to vote is sacred. I have spent the past three years modernizing our elections so that we can engage and empower all Rhode Islanders. Civic participation at all age levels is critical to our success as a state. I will continue to work to remove barriers so that eligible Rhode Islanders can have easier access to the ballot.”

Joe Graziano, Gorbea’s Communication Coordinator, notes that the GAO findings cited in this “Barriers to Voting” report is based on Council on State Governments research that his Department did not have a chance to review. “While it is not called “early voting”, Rhode Island does have an emergency mail ballot period that allows Rhode Islanders to cast their ballot ahead of Election Day without an excuse, says Graziano, noting that older voters have been able to use this system, in fact, 45 percent of the emergency mail ballots cast last year were by Rhode Islanders 65 and older.

Graziano admits that the GAO report shines a light on some of the barriers to voting across the nation. “Secretary Gorbea agrees that access to voting is critical and has successfully strived to improve it in the last three years including the introduction of online voter registration, automatic voter registration and the implementation of new, easier to use elections technologies (voting machines and ePoll books). Additionally, she has redesigned the ballot and the voter information guide to make them easier to read and understand. She also introduced legislation to update and expand opportunities for early, in-person voting,” he says.

“As a way to mitigate the negative impact of the photo ID requirement for voting, the Rhode Island Department of State has made sure that free photo Voter IDs are available to people in the communities where they live,” says Graziano, noting that last year alone, the Secretary of State staff held 51 events at senior centers and retirement facilities to ensure that eligible, older voters had proper voter identification, were introduced to new voting technologies and had any of their elections related questions answered by our Elections Division staff.

Looking to the upcoming General Assembly Session, Graziano says that Secretary Gorbea will once again introduce legislation for early in-person voting. “The legislation would eliminate the need for emergency mail ballots by allowing voters to cast their ballot at their local city or town hall, up to 20 days prior to an election, including the Saturday and Sunday prior to Election Day,” he says.

For more details about the Senate voting obstacle report, go to http://www.aging.senate.gov/imo/media/doc/Voting%20Rights%20Report.pdf.