Reinventing Retirement: Balancing Risk - Closing Remarks

July 19, 2005
Reinventing Retirement: Balancing Risk
International Conference
Washington, DC

Ladan Manteghi
Director, AARP Global Aging Program

I am hesitant to refer to this moment as the closing of the conference. It is my hope that this conference has served as a catalyst for deeper conversation and cooperation; that the end is in effect a beginning. This is the true aim of the reinventing retirement series—it’s a process, not an event. Retirement itself is being reinvented with or without us, yet we have much to contribute and can help shape the process so that retirement happens…but with dignity and purpose and meaning.

As our most recent global survey revealed, the most troubling finding was the severe lack of confidence among the general public about government’s ability to provide adequate retirement security amid demographic pressures.

This finding is all the more alarming when juxtaposed with the findings of our earlier poll released last November at AARP’s first reinventing retirement conference in London. That previous survey found that opinion leaders in G7 countries expect their governments to “muddle through” policy making for their aging populations rather than create and sustain a dialogue that involves all of its social partners and seek a strategy to navigate change and create opportunities for their aging societies.

These twin findings-the lack of a comprehensive policy agenda for aging population and the related lack of confidence among the general public towards government’s ability to address these issues-require urgent action. Based on our deliberations over the course of this conference, a certain consensus emerged. The four points in particular strike home as critical action steps that I challenge all of you to take back to your home countries. They are as follows:

  1. Involve all stakeholders and social partners to increase employment opportunities to benefit older workers and economies. The coming labor crunch will require these older workers, who inn turn can reduce pressures on public pension and health systems. If people want to or must work in their so-called retirement years, there should be no barriers.
  2. Better educate the public on what is needed to prepare for secure retirement. The lack of not just financial literacy, but retirement literacy that’s includes planning for health and long term care, dramatically reduces the options available to future retirees.
  3. Engage citizens in a transparent public debate to find agreeable solutions for solvent retirement systems. These programs represent contracts between government and the public and both must be at the table along with other social partners for solutions to be found and be implemented.
  4. Urge government to assume responsibility needed to build confidence within their constituencies that they will meet current and future commitments as they relate to retirement security.

Do you accept this challenge?

The idea that retirement is a process and not an event must drive our approach to problem solving. We must think broadly about aging and not in piecemeal fashion, or worse, by muddling through. We know it will be better to take steps now in the context of a long-term strategy, rather than take painful actions when it’s too late and our choices are limited.

By coming this conference and by being part of this broader conversation, you have all demonstrated that willingness to meet challenges and offer solutions. I look forward to the continued conversation, and better, to taking the real steps necessary to build security and confidence for our retirees.

Thank you for joining us today.

Have a safe journey home.