MetLife's New ``Living Longer, Working Longer'' Study Finds That Retirement is More a ``State'' Than a ``Date''

-- "Working Retireds'" Limited Savings and Longer Life Expectancies Conflict with Their Desire for Self-Employment and Part-Time Hours --

Older workers today are changing the concept of retirement as theylive longer and work well past traditional retirement age - some evenreturning to the workforce after they "retire" and/or opting for"portfolios" of paid and volunteer positions, according a new MetLifeMature Market Institute(R) study, Living Longer, Working Longer: TheChanging Landscape of the Aging Workforce, conducted by David DeLong &Associates, Inc. and Zogby International. Unlike other industrystudies which have offered predictions of the aging Baby Boomers'retirement expectations, the MetLife "Living Longer, Working Longer"study examines the actual work experiences of employees age 55-70. Thestudy findings were unveiled today at a symposium hosted by MetLifeand the International Longevity Center-USA.

"Today, older workers view retirement as a desirable state, not aparticular date," said Dr. David DeLong, author of Lost Knowledge:Confronting the Threat of an Aging Workforce and a research fellow atthe MIT AgeLab. "When we conducted the study, we found that matureworkers are struggling to balance the conflicting pressures of incomesecurity, post-retirement-age employment and, often, agediscrimination - perceived or real - as they look for a sense ofsecurity and meaning during their 'retirement' years."

The study found that 78% of respondents age 55-59 are working orlooking for work, as are 60% of 60-65 year-olds and 37% of 66-70year-olds. Across all three age groups, roughly 15% of workers haveactually accepted retirement benefits from a previous employer, andthen chose to return to work (or are seeking work). These employees,who have become known as the "Working Retired," represent 11% of 55-59year-olds, 16% of 60-65 year-olds and 19% of 66-70 year-olds.

Motivations for Work

Employee motives for returning to and/or remaining in theworkplace differ significantly by age. Among workers age 55-59,economic incentives take precedence, with 72% of employees in this agebracket citing "need income to live on" as a primary reason forworking. Economic incentives were also the number one motive cited by60-65 year-olds (60%), followed by a desire to "stay active andengaged" (54%) and "do meaningful work" (43%). Among 66-70 year-olds,however, 72% of employees cited the desire to "stay active andengaged" as a primary reason to work, followed by "the opportunity todo meaningful work" (47%) and "social interaction with colleagues"(42%).

Redefining Retirement

The MetLife study found that retirement isn't necessarily definedby an employee's age or work status. When asked what retirement means,many respondents indicated "freedom from the demands of work" (26%),followed by "more control over one's personal time" (24%) and "limitedfinancial concerns" (21%). Another 12% of respondents identified "theability to pursue other opportunities" as their definition ofretirement.

"As organizations seek to attract and retain older workers, theymust be careful not to lump all 'older workers' into the same category- it's important to differentiate the work experiences and motivationsof these employees. While some may be working for financial reasons,others place a special premium on feeling engaged and doing work thatmeans something," says Sandra Timmermann, Ed.D., gerontologist anddirector of the MetLife Mature Market Institute. "Recruiting andretaining older workers requires careful consideration of job design,work environment, and creating new and challenging opportunities."

"Working Retired" on a Quest for Meaning

Among the Working Retired - i.e., employees who are receivingretirement benefits and subsequently returned to work - the quest formeaning is one of the major forces drawing them back into theworkplace. Among Working Retireds age 60-65, the number one reasoncited for taking retirement benefits was "wanted to try something newand different" (20%). This option was cited much less frequently by55-59 year-olds (12%) and by 66-70 year-olds (7%), suggesting thatworkers in their early sixties, who may be in a transitional periodbetween full-time work and retirement, are particularly eager for newexperiences and challenges.

"Becoming self-employed or starting a business" was another commonreason for taking retirement benefits - cited by 19% of 66-70year-olds, 7% of 60-65 year-olds and 8% of 55-59 year-olds. Overall,some 28% of respondents age 55-59 listed themselves as "self-employedor business owner," exceeded only by 34% who reported working for a"private sector business." More than one-third (36%) of 60-65year-olds and 42% of 66-70 year-olds report being self-employed orbusiness owners.

"Clearly, these findings suggest there are conditions in the jobmarket and in older workers' desire for autonomy and flexibility thatmake self-employment an attractive option for those in their latesixties," said Dr. DeLong. "As the oldest Boomers turn 60 in 2006,their desire for autonomy and trying new things could portend asignificant wave of departures in the next five years. Employers willneed to identify ways to retain the valuable knowledge of theseworkers."

Financial Reality Sinks In

While aging workers crave autonomy and flexibility, financialnecessity is driving many older employees to work, whether on apart-time, full-time or self-employed basis. A significant portion(18%) of Baby Boom workers age 55-59 report that they expect to haveno access to retirement benefits (e.g., pension, 401(k), SEP) whenthey stop working and are likely to feel compelled to work well pasttraditional retirement age. About 14% of workers age 60-65 and 10% ofworkers age 66-70 expect to receive nothing but Social Security whenthey finally stop working.

"Retirement experts have been predicting for years the seriousrepercussions that will arise as Baby Boomers' lack of retirementassets collides with their increased longevity to create widespreadeconomic hardship. The rational solution - to continue workingfull-time beyond traditional retirement age - is at odds with manyBoomers' interests, values and priorities for their retirement," notesDr. Timmermann.

Among the other key survey findings:

-- Help Not Always Wanted: In addition to the financial pressures, many aging workers face an additional barrier to workplace fulfillment: the perception of age bias. When asked about unsuccessful job searches, older workers most frequently gave reasons suggesting or implying "age bias." Employees age 55-59 blamed "age bias" 39% of the time, while 60-65 year-olds and 66-70 year-olds identified bias as a barrier 42% and 60% of the time, respectively.

-- Part-Time Preferred as Workers Age: Of those still in the workplace, about 76% of 55-59 year-olds work more than 35 hours a week, and only 39% of 66-70 year-olds work that much. Nearly four in 10 (39%) of those age 66-70 are working fewer than 20 hours a week. Among those seeking work in this age group, 56% wanted less than 20 hours per week.

-- Portfolio Work: In interviews done for this study, some older workers talked of their lives as taking on a "portfolio quality" - a mix of part-time work for pay, volunteer work, and travel, along with more time for hobbies and family. Supporting this portfolio metaphor, 25% of survey respondents across all age groups currently earn income from more than one job. About 20% of those working have two jobs, and another 4% have three jobs.

-- Staying Put: Stereotypes to the contrary, only 15% of 66-70 year-olds moved to warmer climates once they started receiving retirement benefits, while 21% of 60-65 year-olds and 28% of 55-59 year-olds chose to relocate. Among employees who had access to retirement benefits when they were younger, relocation rates are somewhat higher.

-- A Healthy Aging Workforce? Approximately half of all respondents surveyed characterize their health as excellent or very good - 49% of 66-70 year-olds, 52% of 60-65 year-olds and 54% of 55-59 year-olds. These findings indicate that the aging workforce appears to be healthy enough to handle the physical demands of work, at least for the foreseeable future.

The MetLife Living Longer, Working Longer Study was conducted forthe MetLife Mature Market Institute by David DeLong & Associates, Inc.and Zogby International during the first quarter of 2006. The surveypolled 2,719 respondents between the ages of 55-70. To supplement thesurvey data, a small sample of additional interviews were conductedwith people who fit the survey profile, as well as with companymanagers responsible for workforce diversity and experts in recruitingolder workers.

The MetLife Mature Market Institute is MetLife's information andpolicy resource center on issues related to aging, retirement,long-term care and the mature market. The Institute, staffed bygerontologists, provides research, training and education,consultation and information to support MetLife, its corporatecustomers and business partners.

MetLife, a subsidiary of MetLife, Inc. (NYSE: MET) is a leadingprovider of insurance and other financial services to millions ofindividual and institutional customers throughout the United States.Through its subsidiaries and affiliates, MetLife, Inc. offers lifeinsurance, annuities, automobile and homeowner's insurance and retailbanking services to individuals, as well as group insurance,reinsurance and retirement and savings products and services tocorporations and other institutions. Outside the U.S., the MetLifecompanies have direct insurance operations in Asia Pacific, LatinAmerica and Europe. For more information, please visitwww.metlife.com.