Work ability of the public sector employees close to their retirement age

Pauli Forma

Director of Working Life Services

Keva

Work2015-conference 20.8.2015.

University of Turku

Session: Health and Wellbeing at Work

19.8.2015 1

Background

• Extending working life careers and postponing retirement are important aims of public policy in many western countries.

• Retirement is determined by many circumstances, e.g. economic situation, working conditions, family situation and institutional setup of the pension system.

• A crucial issue regarding postponing the retirement is the work ability of the elderly workers who are close to their retirement age.

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Aims of the study

1. To analyse physical and mental work ability of elderly public sector employees (age around 60 years) in Finland.

– Work ability of elderly workers is compared to work ability of all public sector workers.

– Factors associated with work ability are also analysed.

2. To analyse the plans of elderly public sector employees concerning continuing at work and returning to work after retirement.

– Factors associated with the plans are also analysed.

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The municipal sector and state administration sector in Finland

The municipal sector

The state sector

Total number of employees 431 000 84 000

% of the Finnish labour force 20 3

% of women 75 49

Average age of the employees 46 years 46 years

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• The municipal sector provides basic public services for the residents (child care, education, health and medical care and care for the elderly). • Workload is physically or/and mentally demanding in many

occupations.

• The state administration consists of state central administration, regional administration and State local administration. • Workload is lighter because most occupations are administrative based.

Case Finland

• Because of the sustainability gap, longer working careers are necessary in Finland.

• New pension reform is coming into force in 2017.

– The retirement age will rise gradually, however, also some new paths for retirement will be introduced.

• There has been substantive activity focusing on improving working conditions and wellbeing at work in Finland during the past years.

• Therefore, there is wide interest in working ability of elderly workers in Finland.

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The data

• Postal survey was conducted in autumn 2013.

• The response rate was 71, (N=3613).

• Sample for the survey was drawn from Keva’s register.

• Public sector employees (the municipal sector and state sector) who were going to reach their retirement age between years 2014-2015 were chosen for the sample.

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Structure of the data

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Municipal sector

State sector

Men, % (n) 22 (592) 43 (253)

Women, % (n) 78 (2099) 57 (340)

Average age 62 years 62 years

Respondents with university degree, % (n)

27 (721) 35 (203)

Respondents who are married or cohabiting, % (n)

76 (2034) 76 (449)

Questions used

• Work ability: How do you evaluate your work ability from the viewpoint of physical/mental demands in your work?

1 Very good 2 Quite good 3 Moderate 4 Quite bad 5 Very bad

• Continuing at work: What are your thoughts concerning retirement? Have you planned to retire…

1 Before your retirement age 2 At your retirement age

3 Later than on your own retirement age

• Returning to work: Currently, do you have plans to participate in working life after your retirement?

1 Yes 2 No 3 Don’t know

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Subjective work ability of the elderly public sector employees in Finland

24

45

23

6

1

25

51

21

3

1

0 20 40 60

Very good

Quite good

Moderate

Quite poor

Very poor

Mental work ability Physical work ability

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Subjective work ability (quite good or very good) of public sector employees in Finland

80 87 69 73

0

20

40

60

80

100

Municipal sector State sector

Physical work ability

All employees*

Employees close to their retirement age

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73 88

75 77

0

20

40

60

80

100

Municipal sector State sector

Mental work ability

All employees*

Employees close to their retirement age

* Source: FIOH 2013 - Work and Health in Finland-study.

Subjective work ability of the public sector employees according to education-level

21

10

23

40

39

46

48

45

27

34

22

13

0 % 50 % 100 %

Comprehensiveschool (or less)

Vocationalschool

Post-secondarylevel

University

degree

Physical work ability

Very good Quite good Moderate

Quite poor Very poor19.8.2015 11

16

19

23

36

51

52

54

46

29

25

19

14

0 % 50 % 100 %

Comprehensiveschool (or less)

Vocationalschool

Post secondarylevel

University

degree

Mental work ability

Very good Quite good Moderate

Quite poor Very poor

Plans concerning continuing at work and returning to work among elderly public sector employees in Finland

18

53

29

0102030405060708090

100

Yes No I do notknow

Returning to work

11

74

15 0

102030405060708090

100

Before ownretirement

age

Ownretirement

age

Later thanown

retirementage

Continuing at work

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Regression analysis (OLS) on plans concerning continuing at work, standardized regression coefficients

0,081

-0,042

-0,021

0,216

0,077

0,042

-0,3 -0,1 0,1 0,3

Age

Woman*

State sector

Physical work ability***

Mental work ability**

Easing of work load*

19.8.2015 13 * p < 0.05; ** p < 0.01; *** p < 0.001.

Regression analysis (OLS) on plans concerning returning to work after retirement, standardized regression coefficients

-0,04

-0,051

-0,091

0,093

0,128

-0,015

-0,3 -0,1 0,1 0,3

Age**

Woman**

State sector***

Physical work ability***

Mental work ability***

Easing of work load

19.8.2015 14 * p < 0.05; ** p < 0.01; *** p < 0.001.

Conclusions

• Elderly public sector employees who are close to their retirement age have in average a very good physical and mental work ability in Finland.

• Selection: employees with poor work ability have retired earlier.

• There are substantial differencies between employees with different education level.

• Work ability is crucial when it comes to plans on continuing and returning to work.

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Discussion

• As far as the work ability of elderly workers is concerned, it seems possible to have longer working careers and postpone retirement in the Finnish public sector.

• Because of the differencies in work ability, it is important to consider individual solutions and practices in the end of the working career.

• In addition to work capacity, there are also other issues crucial to extended working careers.

– Pressures to diminish the number of personnel in the public sector

– Retirement as a norm.

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