Preretirement Counseling, Retirement Adjustment, and the Older Employee.

338 Pages·2011·8.2 MB·English

DOCUMENT RESUME
ED 042 996
AC 008 636
Greene, Mark R.; And Others
AUTHOR
Preretirement Counseling, Retirement Adjustment, and
TITLE
the Older Employee.
Oregon Univ., Eugene. School of Business
INSTITUTION
Administration.
PUP DATE
Oct 69
NOTE
336p.
EDRS Price 4F-$1.25 PC-$16.90
EDPS PRICE
DESCRIPTORS
*Adult Counseling,
*Adjustment (to Environment) ,
Analysis of Variance, *Attitudes, Evaluation,
Financial Support, Geographic Location, Income,
*Industrial Personnel, Marital Status, Organization
Participation, Physical Health,
Size (Groups) ,
Prediction, Questionnaires, *Retirement, Statistical
Data, Work Attitudes
ABSTRACT
This study analyzed relationships between successful
adlustment to retirement, preretirement counseling, and the
psychological, economic, and other background characteristics of
A preliminary study in the westerb states
individual employees.
showed no small companies, and relatively few other, with
preretirement counseling programs of any consequence. Fight large and
medium sized companies, four with and four lacking such programs,
constituted the sample; 648 retirees and employees were interviewed.
Most retirees (75%) accepted retirement as such, but many retirees
and employees opposed mandatory retirement policies. Finances,
health, activities, retirement attitudes, previous retirement
planning, morale, and job skill level were significantly related to
good adjustment; resistance to retirement correlated with income,
activities, financial planning, health, enjoyment of activities,
retirement attitudes, and marital status. Activities, health, and
financial planning were especially germane. It was concluded that
preretirement counseling programs aided adjustment and weakened older
employees' resistance to retirement, as well as improving morale and
job related attitudes.
("he report includes 331 tables, methodology
of the study, and questionnaire.)
(1,Y)
U B. OEPARTMENT OF WEALTH. EDUCATION
& WELFARE
OPPICE OF ELI/CAT/ON
THIS DOCUMENT NAS BEEN REPRODUCED
EXACTLY AS mutono FROM THE PERSON OR
ORGANIZATION ORIGINATING IT POINTS OF
VIEW OR OPINIONS STATED DO NOT NECES-
SARILY REPRESENT OFFICIAL OFFICE OF EDU
CATION POSITION OR POLICY
PRERETIREMENT COUNSELING, RETIREMENT ADJUSTMENT,
AND THE OLDER EMPLOYEE
Mark R. Greene, Project Director
H.
Charles Pylon, Research Director
U. Vincent
Ma1ii0i1,
Research Assistant
Howard Winkimoss, Research Assistant
Graduate School c / Management and Buelneu
College of
Islam Administration
Unlvitelty of Oregon
Nagai 4, Gripe MOS
1969
RETIREMENT ADJUSTMENT,
PRERETIREMENT COUNSELING,
AND THE OLDER EMPLOYEE
Study
An Experimental
Retirement Adjustment,
InterrelationshiLstilstors Affecting
the
Measurin
of the Older Employee
and the Effectiveness
Resistance to Retirement
Project Director
Mark R. Greene,
Research Director
H. Charles Pyron,
Research Assistant
U. Vincent Manion,
Research Assistant
Howard Winklevoss,
Management and Business
Graduate School of
Administration
College of Business
University of Oregon
97403
Eugene, Oregon
October, 1969
Nvir411%.
rimaisempir,
FOREWORD.
Six yeats ago a group of men from business, industry, and governmental agencies
gathered at the University of Oregon to share ideas about bilth the needs for pre-
tetirement counseling and some of the programs that were being organized to meet
Two years ago we did some follow up to see what had happened and we
these needs.
Although we found many new
discovered more controversy than enlightened progress.
preretirement counseling programs, we also found others which had been discontinued
and a lot of questioning among directors of the remaining programs concerning the
real value.
Consequently, we were able to generate a great deal of enthusiasm and
cooperation in our endeavor to objectively explore the effects of preretirement
counseling on the adjustment of retirees, as well as its effect on the older employee.
We are indebted to many persons for their cooperation and contribution of countless
This study could not have been completed without this
hours and many good ideas.
help.
We are, of course, primarily in debted to the Administration on Aging for their
But, we are also especially appreciative of the
financial support of this study.
help and encouragement given to us by Mr. Charles Weikel, Regional Director of the
Administration on Aging, San Francisco, and by Dr. Marvin Taves and his staff in the
Title IV Office in Washington, D.C.
We want to .thank the personnel in the several hundred companies who contributed
in one way or another to the success of this project, by filling out questionnaires,
participating in interviews, and generally sharing with us their suggestions and
But most of all, we want to express our'appreciation to the personnel
encouragement.
and counseling program directors in the eight companies which we studied in this
Not only did they each spend considerable time helping us under-
research project.
stand their program, working on the design of the research and the questionnaire,
and selecting the sample; but of even more !Importance was their willingness to assume
For most of the companies
the responsibilities and risks of cooperating in the study.
their participation involved the necessity to change company policy concerning the
Therefore, without the full
releasing of names of employees and/or retirees.
commitment of these eight directors, we would never have been able to complete this
study and consequently, we ove each of you a great deal.
We are also appreciative to the splendid cooperation we received from the staff
of Bardsley and Haslacher in the interviewing of the employees and retirees in our
sample.
Finally, to our secretary, Millie Masse, for the expert way you have handled the
details of the project during the past two years and the many times you have worked
beyond the call of duty to help us meet deadlines, we thank you.
To _the readers of this study, we hope that these results will give you the
confidence you need to continue, expand and/or begin to be more successful in
assisting your older employees to be more effective contributors to the organisation
as mill so help them plan for a more adequate and enjoyable life after retirement:/
(
M.R.O.
N.C.,.
TABLE OF CONTENTS
Page
CHAPTER I - INTRODUCTION
1
The problem
A.
1
Objectives of the Study
2
B.
History of Preretirement Preparation Programs
2
C.
.
Growth of Preretirement Counseling Programs
3
D.
.
. .
Surveys of Preretirement Counseling Programs
3
E.
.
. .
Theoretical Aspects of Retirement Decisions
5
P.
.
.
.
The Concept of Retirement Adjustment
G.
7
Attitudes Toward Work and/or Leisure
8
H.
Panning for Retirement
11
I.
Preretirement Education Programs
12
J.
Evaluation of Preretirement Education Programs
14
K.
.
CHAPTER II - DESIGN OF THE STUDY
17
Overall Research Plan
17
A.
Procedure for Screening and Selection of Companies
B.
with Preretirement Counseling Programs
17
An Analyois of Preretirement Counseling Programs
C.
in Western Firma
19
Procedures for Selecting the Eight Companies to
D.
Participate in the Study
25
Procedures for Selecting the Sample of Employees
E.
26
and Retirees
29
Data Collection Procedures
F.
CHAPTER III - FACTORS IN ADJUSTMENT AND RESISTANCE TO
38
RETIREMENT
Introduction
38
A.
General Characteristics of Retirees and
B.
1.
39
Older Employees
Burly Retiree vs. Regular Retiree
2.
48
Characteristics
48
Economic or financial variables
50
Health Variables
Planning Variables
51
52
Attitudes Toward Retirement
Summary
55
56
Retirees' Adjustment in Retirement
C.
57
Adjustment and Resistance to Retirement
58
Retirement Adjustment and Financial Security
.
Retirement Adjustment and Health
61
Retirement Adjustment and Activity Level
64
Retirement Adjustment and Previous Employee Relations
68
Factors
Retirement Adjustment and Demographic Characteristics
of the Population
71
Interrelationuhip between Adjustment Factors.
72
.
.
.
Employees' Resistance to Retirement
76
D.
Resistance to Retirement and Financial Security .
78
Resistance to Retirement and Health
82
Resistance to Retirement and Activities
84
Resistance to Retirement and Employee Relations
Factors
88
A Mathematical Model to Predict Adjustment and Resistance
E.
to Retirement
91
Adjustment to Retirement
92
Resistance to Retirement
95
Conclusion
97
Preretiremont Planning and Adjustment and Resistance
F.
to Retirement
98
Planning and Adjustment
98
Planning and Resistance to Retirement
106
Retirees and Active Employees' Overall Evaluation of
G.
the Preretirement Counseling Program
112.
Major Relationships Summarized
116
H.
Summary of Major Significant Relationships
120
. . .
CHAPTER IV - THE EFFECT OF COUNSELING ON ADJUSTMENT AND
RESISTANCE TO RETIREMEWT
122
Introduction
122
A.
The Effect of Preretirement Counseling on Retirement
B.
Adjustment
123
Section I - A Comparison of Responses of Early
and Regular Retirees in Companies with Preretirement
Counseling with the Responses of Early and Regular,
Retirees in Companies without Preretirement
Counseling
123
123
Overall Adjustment
129
Health
Activities
121
Morale Before Retirement
135
Summary
140
A Comparison of Responses of Early
Section II
and Regular Retirees Who Have Been Involved in a
Preretirement Counseling Program with the Responses
of Early and Regular Retirees who have not been
Involved in Preretirement Counseling Programa
141
. .
141
Overall Adjustment
Income
145
Health
147
Activities
148
Morale before Retirement
152
Within Companies where Preretirement
Section III
Counseling is Available, A Comparison of the
Adjustment of Retirees Who Have Taken Preretirement
Counseling as Compared with Retirees who have not
156
:taken Preretirement Counseling
156
Overall Adjustment
Income
156
Health
161
Activities
163
Morale Before Retirement
166
Section IV - A Comparison of the Responses of
Early and Regular Retirees who took Preretirement
Counseling and Thought it Very Helpful Versus
Those Who Took Preretirement Counseling but
Thought it Not Especially Helpful
169
Overall Adjustment
177
Income
177
Health
177
Activities
177
Morale Before Retirement
178
The Effect of Preretirement Counseling on
C.
Resistance to Retirement
181
Section V - A Comparison of Responses of Older
Employees Concerning the Effects of Preretire-
ment Counseling on Resistance to Retirement. .181
Employees in Companies with Programs vs.
Those Without
181
Overall Resistance to Retirement .
181
.
Expected Retirement Income
183
Expected Retirement Health
184
Expected Retirement Activities
185
.
.
.
Employees who have taken Preretirement
Counseling vs. All Employees Who Have Not.188
Overall Resistance to Retirement .
193
.
Expected Retirement income
194
Expected Health in Retirement
194
. .
.
Expected Retirement Activities
195
.
. .
Employees in Companies with Preretirement
Those Who Have vs.
Counseling Programs:
Have Not Taken Preretirement Counseling. .196
Overall Resistance to Retirement .
201
.
201
Expected Retirement Income
Expected Retirement Health
201
Expected Retirement Activities .
201
Employees Who Pelt the Counseling was
202
Helpful vs. Those Who Did Hot
Overall Resistance to Retirement .
208
.
Expected Retirement Income and Health 208
Expected Retirement Activities .
208
.
.
The Effect of Preretirement Counseling
on Employee Morale
209
Section VI - A Differential Analysis of the
Effectiveness of Pre- and Postretiroment
Counseling on the Adjustment of the Retiree. .219
234
Summary of Chapter IV Results
D.
CHAPTER V - SUMMARY, CONCLUSIONS, AND IMPLICATIONS
.236
.
.
.
Some Distinguishing Characteristics of the
Stimple.236
The Effect of Preretirement Counseling on
Adjustment to Retirement
241
The Effect of Preretirement Counseling on the
246
Morale of Older Employees
A Comparison of Preretirement Counseling and
Postretirement Counseling as they Affect Adjustment
248
to Retirement
249
Conclusion
Some Implications for Further Research 249
254
APPENDIX A
274
APPENDIX 8
311
APPENDIX C
CHAPTER I
INTRODUCTION
The Problem
A.
In our society the institution of retirement is creating a new life-cycle
role for an ever increasing number of people whose labor is not considered
essential for the supply of goods and services.
For this reason, retirement
represents a transition from a productive to a non-productive economic role in
For the individual this transition often poses significant social and
society.
psychological problems resulting from the termination of a life-fulfilling work
role.
Although the number and proportion of the retired population is increasing,
little empirical research has been focused upon the possible social and
psychological disorganisation resulting from tht termination of a life-
There are, however, a
fulfilling work role and the transition to retirement.
number of indications that people do not always adjust well in retirement.
The suicide rate is much higher for white males over sixty-five years of age
Many retirees, who have not adequately prepared financially
(Birren, 1964).
for their retirement, end up experiencing financial deprivations because of
There is also a commonly observed, but apparently unverified,
reduced income.
phenomenon that many people have strokes, heart attacks, and psychological
the interesting thing seems to
breakdowns immediately following retirement.
be that this has very little to do with age, but appears to be related to the.
fact that they are no longer working.
Most of these indicators of poor retirement adjustment have not been
However, they do seem, in total, to indicate that
documented by research.
people who do not prepare both psychologically and economically for the
impact of not working, of not having the close association of being on the
job, of no more responsibility, loss of routine, etc., may have serious
Further, it may be argued that employees will make a
adjustment problems.
totter adjustment to retirement if they plan for retirement--psychologically,
financially, and in health areas.
Some companies, after considering the indicators described, have felt
that it is the company's responsibility to prepare the omployee for retire-
The logic for
ment, through a series of intensive counseling sessions.
The person has spent his
this kind of thinking goes something like this
entire working life, or at least the last ten to twenty years before retire-
Thus, the company feels that they must not only
ment, with the company.
provide for the financial adequacy after retirement, but also they have a
responsibility to "reprogram" the man so that he will be able to adjust
psychologically in retirement.
On the other Wind, some companies have viewed preparation for retire -
This is in keeping with the American
ment as an individual responsibility.
tradition of saving for later security and the Individualism which
Thus, any c4mpAny "counseling" program
characterises American industry.
2
Still other companies
is seen as an interference in the employee's private life.
feel that the problems of retirement and aging are for the community, state,
and federal governments to solve.
Faced with this dilemna, an important need for our business community is
for information which will aid management in better predicting the cons,-
The purpose of our study was to
quences of variouu policy alternatives.
investigate the effectiveness of preretirement counseling programs and thus,
hopefully, contribute to the development of more enlightened personnel manage-
ment policies for the older and retiring employee.
Ob ectives of the staqx
B.
The general objective of the study was to determine what, if any, relation-
ships exist between success in adjustment to retirement, preretirement
counseling and the psychological, economic and sociological characteristics of
the individual employee.
A secondary objective was to examine resistance to
retirement and its relationship to counseling.
In order to accomplish these general objectives, three main hypotheses were
established as follows:
Using appropriate measures, the degree of employees' resistance
1.
to retirement and retirees' adjustment to retirement can be
determined.
The inter-related variables contributing to resistance or adjust-
2.
ment to retirement can be identified, measured and evaluated.
The differences in the degree of resistance or adjustment to
3.
retirement can be explained in terms of the inter-related variables.
The principle independent variable was exposure to preretirement counseling.
Specifically, the study had as its principle purpose to determine whether
exposure to intensive-comprehensive preretirement counseling, carried out by
the company, had any significant effect in reducing retirement resistance
As a by-
among employees, or aiding in the retirement adjustment of retirees.
prodlIct, we also hoped to identify other variables contributing to
resistante to retirement or adjustment to retirement and to mature their
effect and inter-relationships.
History of FreretirmaLLELLEEILLIaprarma
C.
While the views of personnel managers differ widely as to the need for
preretirement education and the propriety of the company providing it, many
companies report that they have some form of preretirement education.
Although the origin of the first program of this type is presently obscure,
companies which have embarked upon preretirement preparation programs have
In
followed either the individual counseling approach or the group approach.
comrenting upon those approaches, Hunter (1968), observes that while little'
is known about the origins of the individual approach, group type preretire-
ment planning programs can be traced to the pioneering work of two