Giving Older Workers the Choice to Work or Retire with Dignity

Older workers do not have the means to retire, and others are working in subpar labor conditions, according to experts from the EPI.  


Older workers should be given the choice to continue working or transition to retirement, experts said in a webinar hosted by the Economic Policy Institute, but often they are not given the decision-making power.

Whether it’s coming from employers, or government programs, older workers need support when it comes to working and retirement, according to the panelists. At the moment, that type of support is lacking, and sometimes the current workplace can actively work against a comfortable retirement.

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“Many older workers are stuck in these bad jobs, unable to save for retirement and are eventually forced out into poverty,” said Siavash Radpour, associate research director, ReLab at the Schwartz Center for Economic Policy Analysis. “They are trapped with no way out.”

Economists and other experts tend to be biased in favor of extending work into old age, said Monique Morrissey, an economist at the Economic Policy Institute. She said many underestimated how many workers have difficult and even dangerous jobs.

“I think economists should be neutral about when workers retire because leisure and consumption both are ways of improving living standard, meaning retirement in this case,” said Morrissey. “We know that many older workers right now can’t afford to retire and meet basic expenses. If working longer is a response to inadequate retirement savings and benefits, the solution at least for future generations should be expanding work opportunities and retirement coverage at younger ages, rather than working longer into old age.”

Social Security

Morrissey said the most straightforward way to allow old workers to retire is to increase social security contributions and benefits. There are some who have suggested further raising Social Security’s full retirement age, which has already been increased from 65 to 67. However, such across the board benefit cut would be deeply unpopular. Social Security voters across the political spectrum have expressed that they prefer to contribute more and not receive less.

“We should listen to these voters and workers since they’re the ones doing the work,” said Morrissey.

As for older workers who do want to continue working, Rep. Don Beyer, Congressman, Virginia’s 8th District, introduced legislation to establish an Older Workers’ Bureau in November 2022.   

“We can pass the Older Workers’ Bureau Act,” Rep. Beyer said on the webinar. “It’ll establish an Older Workers’ Bureau and it will be designed to improve the working conditions and the wellbeing of older workers, as well as advance employment opportunities. … We’re researching age discrimination, wages paid to older workers, job security, among other data points. The Bureau will also conduct outreach to relevant institutions and agencies, because they all need to work together.”

Furthermore, an Older Workers’ Bureau will be able to provide legitimacy and dignity to seniors in the labor force, said Teresa Ghilarducci, director at the Schwartz Center for Economic Policy Analysis.

Widespread Support

“I speak to a lot of workers, labor unions, senior halls and they brighten up. These are people who are 70 or 50. When I say that you are supporting an Older Workers’ Bureau for the federal government it gives instant legitimacy to their role in society,” said Ghilarducci.

The director said it reminded her of what happened when the women’s Bureau was established in the 1920s. “It instantly gave status and respected dignity to these groups of workers that are pushed out or just not paid attention to,” she said.

Ultimately, the experts agreed that working Americans should be given the choice of whether they want to work or retire.

“You work your lifetime,” Radpour said. “When you’re old you deserve to work if you want to and retire if you want to. We’re not saying everyone should retire or everyone should work. We’re saying you deserve to have the choice. And the choice will empower you to have better work and better retirement.”

Investment Product and Service Launches

John Hancock Retirement launches dynamic default investment feature; Tata AIA upgrades Life Fortune Guarantee Pension; Putnam Investments launches emerging markets ex-China ETF; and more.


John Hancock Retirement Launches Dynamic Default Investment Feature

John Hancock Retirement has launched a dynamic investment feature available to new clients converting from an existing plan.

With the new feature, participants older than an age set by the plan sponsor will be transitioned automatically from a target-date fund to the John Hancock Personalized Retirement Advice managed account program, which uses Morningstar Investment Management LLC’s advice methodology.

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“Managed account programs, such as Retirement Advice, are designed to provide customization and adapt to a participant’s evolving financial needs and goals,” said Wayne Park, John Hancock Retirement’s CEO, in a statement. “Nearly 90 percent of our retirement plan participants recently said that professional management of their retirement investments and savings would positively impact them getting financially prepared for retirement. We’re pleased we can offer this solution for those who feel it will benefit their retirement readiness.”

Tata AIA Upgrades Life Fortune Guarantee Pension

Tata AIA Life Insurance Co. Ltd., headquartered in Mumbai, India, has introduced a more powerful version of its flagship annuity plan, Tata AIA Life Fortune Guarantee Pension.

The new version includes some critical improvements, including higher annuity rates and death benefits. The plan also offers multiple tailor-made guaranteed income options 

“With regular guaranteed income for life to help us manage our expenses after retirement, Tata AIA Life Fortune Guarantee Pension is an excellent financial tool to achieve that goal,” said Samit Upadhyay, chief financial officer, in a statement. “The plan helps our consumers save enough before they retire and ensures stable income when the regular salary income stops.”

Putnam Investments Launches Emerging Markets ex-China ETF

Putnam Investments announced the launch of Putnam Emerging Markets ex-China ETF, a new actively managed, transparent exchange-traded fund with a distinct investment focus on emerging market companies, excluding investments in China and Hong Kong.

“We are delighted to continue to add to our growing roster of fundamentally oriented, actively managed equity ETFs,” said Carlo Forcione, head of product and strategy at Putnam, in a statement. “This new offering provides our clients and the broader marketplace with important choice and flexibility in emerging markets equity investing, without the typical heavy weighting of China.”

The ETF will invest at least 80% of its net assets in securities of emerging market companies. Investments will exclude those domiciled in, or whose stocks are listed for trading on an exchange in, China, as well as companies domiciled in Hong Kong.

SponsorCloud, Equity Trust Company Provide Automated Solution for Alternative Investment Offerings in IRAs

Equity Trust Co. and SponsorCloud LLC, a real estate investment management platform, launched a solution to streamline the user experience for IRA investors while providing access to alternative investments in real estate.

“Our collaboration with Equity Trust was created on the mutual mission to allow IRA investors and sponsors to more effectively interact,” said TJ Lokboj, chief revenue officer at SponsorCloud, in a statement. “For too long, this has been a very manual and complicated process. We are very excited to build this technology with Equity Trust and look forward to streamlining the process of making investments through self-directed IRA accounts more accessible.”

Sponsors and syndicators have the added benefit of exposure to more than $11 trillion in retirement accounts, as of December 2022.

AllianceBernstein Launches AB High Yield ETF

AllianceBernstein Holding LP and AllianceBernstein LP announced the launch of AB High Yield as an active exchange-traded fund on the New York Stock Exchange.

“The AB High Yield ETF broadens our offerings for clients by ultimately supplying them with a flexible vehicle to weather various market conditions,” said Noel Archard, global head of ETFs and portfolio solutions at AllianceBernstein, in a statement. “We remain focused on enhancing our ETF suite to meet our clients’ ever-evolving needs, and this launch unlocks a new opportunity to invest in additional income-generating products.”

The ETF seeks to provide income by emphasizing broad diversification, dynamic beta exposures and AB’s quantitative and fundamental research.

Axxcess Platform Adds Direct Indexing

Axxcess Wealth Management LLC and Orion Advisor Solutions announced they have entered into an agreement that will provide Axxcess Advisors and Axxcess Platform TAMP partners with sleeve-level direct indexing and tax optimization through Orion’s custom indexing services.

Clients will be able to incorporate cost-efficient direct indexing strategies with the benefits of tax-efficient wealth management to complement adviser-directed and third-party SMA strategies available on the Axxcess Platform.

“Axxcess Platform’s ability to customize tax management for complex clients will further differentiate an advisors’ value proposition,” said Cory Persson, director of investments at Axxcess Wealth, in a statement. “Advisors and firms that outsource their wealth management operations to Axxcess’ third party money managers but want to develop their own advisor directed indexing strategies and allocation mandates can do so on a turnkey or client by client basis.”

BondBloxx Prtners With Northern Trust to Outsource Trading Operations

Northern Trust is providing outsourced trading services to BondBloxx Investment Management Corp., an issuer of precision fixed-income ETFs.

“Partnering with Northern Trust to outsource our trading operations has allowed us to quickly grow our business,” said Leland Clemons, BondBloxx’s founder, in a statement. “We have gained access to asset class and markets expertise without having to scale an internal trading infrastructure, which allows us to focus on enhancing the product mix and investment insights we offer to our clients.”

“Our partnership with BondBloxx has been highly effective, allowing them to improve their flexibility and liquidity while expanding access to markets, which is crucial to their growth trajectory,” said Stephanie Farrell, head of integrated trading solutions for the Americas at Northern Trust Securities Inc., in a statement.

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