10. Retirement Flashcards
xhow has retirement changed throughout history?
- there used to be no retirement, just changed jobs when it was too hard or passed away
- industrial age caused young people to be the preferred employers, pushing older people out
- industrial age also caused people to be less able to take care of parents as they moved around more
- then old age security and government pension plan and social security were introduced
- retirement started to be seen more positively
what are the traditional models of retirement?
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role theory - loss of work requires adjustment post-retirement to new principal roles, loss of the work role loosens the ties between the individual and society
- is a negative view, suggests you lose your role and identity when you retire
- continuity theory - retired individuals maintain their self-concept and identity into retirement phase
- life course perspective - pre and post retirement changes are shaped by earlier life events
what is the temporal process model of retirement?
- retirement process consists of three broad and sequential phases
- retirement planning - usually decades before retirement
- retirement decision making
- retirement transition
what are the three types of retirement based on the temporal process model?
- crisp retirement - you stop working and never stop working again
- blurred retirement - no definitive day where you stop working, you just gradually work less
- bridge employment - any paid work after and individual “retires” or starts receiving a pension
what are the cognitive and financial aspects of retirement planning?
- cognitive aspect - what will i do? where will i live? who will i share it with? how will i afford it
- financial aspect - predicting the balance between income and expenditure that allows the individual to maintain a desired lifestyle
what is the most common retirement pattern?
- more typical for retirees to show the blurred retirement pattern
- they exit and re‐enter the labour force several times
- includes bridge employment, retirees work in a completely different occupation than they had during most of their adult life
what does retirement decision making consist of? what is early retirement?
- imagining the possibility
- assessing when to retire
- putting plans into action
- early retirement is before social security benefits and/or before personal timeline for retirement
what does the retirement transition consist of?
- changes in daily activities
- changes in well-being
what are the key predictors of retirement?
- individual attributes
- job/organizational factors
- family factors
- socioeconomic contexts
what individual attributes predict retirement?
- gender - men tend to have more savings, clearer retirement goals, and engage in bridge employment
- age - younger individuals are less likely to plan, less likely to retire, and more likely to engage in bridge employment
- health - healthy people more likely to work longer and engage in bridge employment
- income - low income earners are less likely to plan, more likely to seek bridge employment
what job/organizational factors predict retirement?
- greater stress, workload, physical demands predict earlier retirement or bridge employment
- retirement benefit plans - pension and health insurance encourages or discourages retirement
- workplace policies and norms regarding age of their employers and accessibility for older people
what family factors predict retirement?
- spousal impact on financial planning
- care needs - children, grandchildren, spouses, parents
- spouse’s retirement schedule - shorten the gap between retirements, bridge work until spouse retires
how do socioeconomic context predict retirement?
- retirement support varies in different countries
- ex. dutch clearly define pensions → less clear goals and less planning
- ex. americans have much more uncertainty in their pensions
what is the resource based dynamic model for retirement?
- retirement adjustment depends on how many resources the person has
- resources - the total capability an individual has to fulfill their centrally valued needs
- physical, cognitive, motivational, financial, social, emotional
what are the sources of retirement income in Canada?
- the government
- employer’s registered pension plans
- personal savings and assets
what are the sources of retirement income from the government?
- old age security ~ $713-780 per month
- guaranteed income supplement (for low income)
- canadian pension plan - for those who have worked…
- max $16,375 per year (average of 9,000)
- increasing max of $20,000 by about 2059
what are the requirements for old age security (OAS)?
- must be 67+, increased from 65
- be a canadian citizen or a legal resident
- age for survivor allowance increased from 60 to 62
what is financial well-being?
- the extent to which the person feels satisfied with his/her financial status and
- is able to maintain effective financial functioning
what is financial literacy? how is this related to retirement?
- understanding the basic financial concepts
- associated with increased likelihood of retirement planning
- associated with better financial well-being
- women, minorities, and less education people, have poorer literacy
what is clarity of financial goals? how is this related to retirement?
- knowing what is desired during retirement and money needed
- associated with greater likelihood of financial planning
- associated with greater retirement savings
- associated with greater financial well-being
what are post-retirement factors of physical well-being?
- quality of health insurance - healthier if employer provides insurance after retirement
- bridge employment - physically healthier if engaged in bridge employment, bidirectional relationship
- volunteering - also a bidirectional relationship
what is psychological well-being and what are some factors that determine it?
- the extent to which the person is generally content with his/her psychological states and enjoys effective functioning
- work related factors
- family factors
- voluntariness of and planning for retirement
- post retirement activities
how do work related factors affect psychological well being during retirement?
- work role identification - if we identify with our jobs, it is harder to retire
- stressful, demanding, dissatisfying jobs - more enjoyment after retirement as job was hard
- pre-retirement unemployment - people who get laid off, fired, experience health challenges, have more trouble with retirement
how do family factors affect psychological well being during retirement?
- married people are happier than divorced or single (if spouse is retired)
- it is better to have fewer dependents
what are the three different patterns of psychological well being before and after retirement?
- maintain well-being (70%)
- tend to be married with a spouse who is also retired
- more likely to be voluntarily retired
- more likely to engage in bridge employment - U-shaped changes, decline as they reach retirement then increase (25%)
- likely to have unexpected or unplanned retirement
- might have had health declines
- lower marital satisfaction - recover, enter at low point then increase (5%)
- usually the people who have very demanding jobs
what are some interactive effects on retirement?
- interactions between psychological, financial, and physical well-being
- also related to the resources based dynamics model
what are the main changing trends for retirement?
- unexpected, increasing life expectancy
- smaller workforce to retired ratio (affects CPP) - labour force is decreasing
- less young people entering, more older people retiring
- increased the amount of CPP people have to put in
- some countries are still ill-prepared
what are the possible consequences of the changing trends for retirement?
- later age of retirement, 65 → 67 → 65
- reduced benefits/pension plans
- shifting financial risk to individual
how has technology changed savings and investments?
- personal financial management has become more convenient for individual users
- transaction costs have decreased significantly
- possible risks of uninformed investors making poor investment choices
how might technology impact psychological and physical well-being?
-
extension of health span
- health monitoring technology
- e-health, eventually track our health and flag doctors if anything is wrong
- general medical advances
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enhanced social connection
- virtual online communities
- facetime, whatsapp, zoom
what are some difficulties with staying in the labour force for older adults?
- ageism
- lack of education and training
- difficulty finding and applying for jobs
- health issues
- work-life balance
- absence of workplace accommodations
what are the differences in wages for men and women with apprenticeships and bachelors?
- men with apprenticeships only make slightly less than men with bachelors
- this gap is significantly larger for women with apprenticeships and bachelors
what is vocation?
a person’s choice of occupation, reflects a person’s preferences and interests
what is holland’s vocational development theory?
- people express their personality in their vocational aspirations or interests
- there are 6 types that represent all possible vocational interests, competencies, and behaviours
- R - realistic, I - investigative, A - artistic, S - social, E - enterprising, C - conventional
- combine two or three of the codes in the RIASEC model to describe people and occupations
- congruence of personality and occupation is very important in job satisfaction
what is super’s life span life stage story?
- focuses on the role of the self and proposes that people attempt to realize their inner potential through their career choices
- expression of self‐concept through work occurs in “life‐space life‐stages” including…
- environmental determinants (labour market)
- situational determinants (period of history)
- personal determinants (biological and psychological)
what are the different stages in super’s life span life stage theory?
- exploration stage (teens to mid‐20s) - people explore career alternatives and select a vocation that they feel will express their self‐concept
- establishment stage (mid‐20s to mid‐30s) - people are focused on achieving stability, remain within the same occupation while seeking to move up the career
- maintenance stage (mid‐30s to mid‐50s) - people attempt to hold on to their positions rather than seeking further advancement
- disengagement stage (mid‐50s to mid‐60s) - workers begin to prepare for retirement
what is recycling in super’s life stage theory?
- they change their main field of career activity partway into occupational life
- middle‐aged workers may find themselves once again in the establishment stage (late 20s)
what is career plateauing and how can it be mitigated?
- remain static in their vocational development
- workers who reported serving as a mentor were less likely to experience the negative effects of plateauing
- mentoring activities can help middle‐aged and older workers with their own psychosocial development
what is the difference between holland and super’s theory?
- holland’s theory emphasizes vocational preferences
- super’s theory places the focus on the occupation that you see as most “true” to your inner self
what is the idea of occupation as a calling?
calling - an individual’s consuming passion for a particular career domain that serves people in some capacity and contributes to a sense of personal meaning and purpose
* emphasize people’s desires both to achieve self‐expression through their work and to contribute to the larger good
* people who cannot find a job in the area of their calling may find satisfaction through their leisure pursuits
what are some factors that predict whether a person will be able to achieve their calling?
- person-environment congruence
- career commitment
- sense of meaning in work
what is a boundaryless career?
- a career that crosses the boundaries of an employer or organization
- a frame of mind that allows workers to think more flexibly about their commitment to a particular employer
what is a protean career?
- individuals are both self‐directed and driven internally by their own values
- individual seeks personal growth through self‐reflection and self‐learning
- has internal standards for success that will enhance his or her identity
what is core self-evaluation in careers?
- individuals who believe that they can shape their careers
- composed of self‐esteem, generalized self‐efficacy, high emotional stability, and the belief that you control your fate
what are intrinsic factors in vocational development?
- tasks required to perform the work itself
- cannot be found in precisely the same fashion in a different type of job
- engages sense of identity because work = feelings of competence, autonomy, and personal growth
what are extrinsic factors in vocational satisfaction?
- features that accompany the job but are not central to its performance
- ex. salary, is associated with the job but also in common with other jobs
- aspects of work do not directly engage your sense of personal identity and competence
what is the two factor motivational theory?
- intrinsic factors are job “motivators” and extrinsic factors are the “hygiene” conditions present in the workplace
- working for intrinsic reasons → more likely to achieve self-actualization
- hygiene/extrinsic factors → prevent dissatisfaction but are not sole motivators
what is the self-determination theory?
- proposes that workers attempt to fulfill their needs for competence, autonomy, and relatedness
- people will work harder when they feel they are in control of what they do (autonomy) and are able to satisfy their needs for mastery
what is motivation crowding out?
people’s intrinsic motivation decreases when they receive extrinsic rewards for completing the work they enjoy
what is affective events theory?
- events at work lead individuals to experience affective reactions, and these in turn influence attitudes towards work and performance
- positive events can make up for prior negative workplace‐related events
- predicts that people will differ in their reactions to daily work experiences on the basis of their personality traits
how does agreeableness lead to positive or negative affect in the workplace?
- those high in agreeableness actually had more negative affect following interpersonal conflict
- highly agreeable employees were also more likely to experience negative affect when they perceived their work environment to be low in social support
- supervisors high in agreeableness will be less likely to take out their frustrations on their employees
how does subjective well being lead to positive or negative affect in the workplace?
- high subjective well‐being predicts job satisfaction
- people high in subjective well‐being tend to experience more positive emotions that carry over into their work lives
how do neuroticism, conscientiousness, and extroversion lead to positive or negative affect in the workplace?
- people with high neuroticism scores are less likely to feel that their jobs are intrinsically rewarding
- neuroticism is negatively related to job satisfaction
- people high in the traits of conscientiousness and extroversion are more satisfied in their jobs
what is person-environment correspondence?
- people are most satisfied when their workplace responds to their needs
- focuses on needs rather than interests
- stresses the role of values in promoting job satisfaction
what is emotional labour?
- the requirement in service‐oriented jobs in which workers must smile and maintain a friendly attitude regardless of their own personal feelings or emotions
- puts stress on the employees who feel constantly that they have to simulate emotions they truly do not feel
- emotional labour can include covering a stigmatized but concealable identity
how does work stress lead to metabolic syndrome?
- high levels of stress leads to an increased likelihood of developing metabolic syndrome
- lack of job fairness can be another workplace stressor
- men who reported higher justice at work were less likely to have metabolic syndrome
- for women, stress encountered at work independently predicted type 2 diabetes
what is the work-family enrichment model?
- experiences in one role improve the quality of life in the other
- organizations can protect their workers against stress by providing them with support to maintain both their work and family roles
- enrichment can take the form of development, in opportunities for growth, and affect, or levels of happiness
what is the work-family conflict model?
- proposes that people have a fixed amount of time and energy to spend on their life roles
- the more time and energy people invest in one area, the less they have for the other set of demands and activities
- conflict is most likely to occur among mothers of young children, dual career couple, and those who are highly involved with their job
what is job tenure and how does it relate to vocational satisfaction?
- job tenure - the length of an individual’s employment
- separating age from tenure becomes particularly important in understanding vocational satisfaction as individuals grow older
- tenure is associated with a decrease in vocational satisfaction
- older employees who switches jobs actually increased in satisfaction
how does ageism affect vocational satisfaction? what people are most likely to experience ageism on the job?
- women and workers whose jobs were precarious seem particularly likely to be targets of this more subtle form of age discrimination
- older workers who feel that their contributions are not valued, or who experience ageism on the job, will have lower vocational satisfaction
- older employees who continue to feel engaged in their work will be more likely to be able to fend off perceived age discrimination
what are some job factors that contribute to decline in vocational performance?
- physical exertion
- shift work
- age biases
- lack of collaboration
- cognitive effort
what are some job factors that contribute to improvement in vocational performance?
- openness to change
- greater expertise
- fewer absences
- fewer injuries
what are the different stages of retirement?
- anticipatory period
- decision to retire
- official retirement
- sometimes bridge employment - initial adjustment
- stabilization
what is obsessive passion?
- the individual needs work to validate his or her self-esteem
- related to worse retirement adjustment
what is spouse underfoot syndrome?
partners are more likely to experience conflict now that they are in each other’s presence for most of the daytime and nighttime hours
what is the new modes of retirement perspective?
- characteristics of the person’s spouse and lifelong family responsibilities play a role in retirement decisions and adjustment
- current cohorts of older women are more likely to operate according to this
what are some benefits of leisure pursuits in later adulthood?
- contribute to sense of identity
- provide focus and meaning in life
- help maintain health and cognitive functioning
- enable social connections to others
