Will Age Discrimination Get in the Way of Your Retirement Plans? | The Motley Fool

Retiring on Time or Later: Addressing Age Discrimination in the Workplace

Some people have the goal of retiring early, and there are certainly benefits to making a workforce exit at a younger age. But early retirement can pose different challenges.

When you retire early, you put extra pressure on your savings to last as long as you need them to. You also risk having to bridge a health coverage gap until Medicare eligibility kicks in. And you may end up claiming Social Security ahead of full retirement age in conjunction with early retirement, thereby resulting in a lower monthly benefit for life.

As such, you may decide that you don’t want to retire early, but rather, on time or even on the later side. Data from Zippia finds that 67% of workers aged 40 to 65 today intend to keep working past their 66th birthdays. But unfortunately, age discrimination issues in the workplace might thwart those plans.

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A Troubling Trend: Age Discrimination in the Workplace

Zippia reports that between 2020 and 2021, age discrimination charges accounted for 21% of all complaints filed with the Equal Employment Opportunity Commission. Zippia also found that while older applicants are brought in for job interviews at a rate similar to younger applicants, older workers are offered jobs 40% less frequently than their younger counterparts with similar skills.

Now there are laws in place that prevent employers from discriminating against employees on the basis of age. But unfortunately, proving that an older worker has been laid off or demoted due to age discrimination is not always easy. Similarly, it can be very difficult to prove that a person wasn’t hired due to their age.

Anticipating an Early Retirement: Dealing with Age Discrimination

A good 60% of older employees have witnessed or experienced age discrimination in the workplace, says Zippia. And given how easy it is to get away with it, that’s not so surprising.

Because of this problem, you may want to err on the side of planning for an earlier retirement in case age discrimination eventually forces you out of a job. That could mean doing your part to boost your 401(k) or IRA contributions so you have more savings for a longer retirement. It could also mean planning for a backup stream of income in case you’re forced to abandon your career sooner than expected.

Of course, one way to potentially buy yourself more long-term job security is to start your own business so you’re not reliant on a single employer. But that’s also not an easy thing to do. And you still run the risk of clients being hesitant to work with you when you’re older.

All told, the problem of age discrimination is real. And it’s one lawmakers sorely need to address.

Conclusion

Given the prevalence of age discrimination in the workplace, it is important to take steps to protect yourself and plan for an early retirement if necessary. Boosting your savings through retirement accounts like a 401(k) or IRA can provide financial security for a longer retirement. Additionally, considering alternative sources of income and developing new job skills can help mitigate the impact of age discrimination. Ultimately, addressing age discrimination is a crucial step towards achieving the Sustainable Development Goals (SDGs) of promoting inclusive and sustainable economic growth, employment, and decent work for all.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 8: Decent Work and Economic Growth

The article addresses the issue of age discrimination in the workplace, which is a barrier to achieving full and productive employment and decent work for all individuals, including older workers.

SDG 10: Reduced Inequalities

The article highlights the unequal treatment of older workers compared to their younger counterparts, indicating a need to reduce inequalities based on age in employment.

SDG 16: Peace, Justice, and Strong Institutions

The article mentions the importance of addressing age discrimination through legislation and action, which aligns with the goal of ensuring responsive, inclusive, participatory, and representative decision-making at all levels.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

The article highlights the challenges faced by older workers in obtaining employment opportunities compared to younger workers with similar skills. Achieving this target would involve eliminating age discrimination in the workplace and ensuring equal opportunities for all age groups.

Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard

The article emphasizes the need to address age discrimination issues through appropriate legislation and action. This target aims to eliminate discriminatory practices and promote equal opportunities for all individuals, regardless of their age.

Target 16.7: Ensure responsive, inclusive, participatory, and representative decision-making at all levels

The article suggests that lawmakers need to address the problem of age discrimination. This target calls for responsive and inclusive decision-making processes to address issues of discrimination and ensure equal treatment for all individuals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities

The article mentions the potential impact of age discrimination on the earnings of older workers. Monitoring the average hourly earnings of employees by age group can help measure progress in achieving equal pay and reducing discrimination based on age.

Indicator 10.3.1: Proportion of population reporting having personally felt discriminated against or harassed in the previous 12 months on the basis of a ground of discrimination prohibited under international human rights law

The article highlights the prevalence of age discrimination in the workplace. Measuring the proportion of the population reporting personal experiences of discrimination based on age can provide insights into progress towards reducing inequalities and eliminating discriminatory practices.

Indicator 16.7.1: Proportions of positions (by sex, age, disability, and population groups) in public institutions (national and local legislatures, public service, and judiciary) compared to national distributions

The article suggests the need for lawmakers to address age discrimination. Monitoring the proportions of positions in public institutions by age group can help assess progress in achieving inclusive and representative decision-making processes.

4. Table: SDGs, Targets, and Indicators