#9
Advocate for Change

A few simple reforms could ease the way for older adults to keep working part- or full-time, helping fill critical labor shortages, meeting social needs and enhancing individual and community well being.

For example, current laws prohibit most employers from giving part-time pensions to older people who choose to downshift to part-time jobs. To collect any pension, employees have to stop work entirely, which means they stop paying into Social Security. Likewise, current regulations require employers with health insurance plans to cover older employees under their private plans, even if the employees qualify for Medicare. Turning that around could create an incentive for employers to keep older workers.

In addition, Social Security and tax rules work to the disadvantage of those who continue working beyond normal retirement age. They continue to pay into the Social Security system, but don't get higher Social Security benefits when they eventually retire. Why keep paying in at a time when they could start collecting?

A set of flexible incentives could attract older people to fill workforce gaps in education, homeland security, health care and nonprofit organizations. How about providing fully or partially paid health care for older adults who continue to work in vital jobs? Or making a certain amount of income tax-free for older adults working in the nonprofit sector?