Legislation was introduced in the U.S. Senate last week aimed at making it easier for older Americans to stay in the workforce longer and encourage employers to recruit and retain older workers. The bill has bi-partisan sponsorship of Senators Gordon H. Smith (R-OR), Herb Kohl (D-WI), and Kent Conrad (D-ND).

I’ll have more on this in a future column over at RetirementRevised, but here are key provisions, according to a press release from the sponsors:

- Removing penalties in certain pension plans for workers who phase into retirement by receiving a lower salary while working reduced hours;

- Allowing seniors to earn delayed retirement credits for Social Security purposes for an additional two years until age 72, instead of age 70;

- Reducing the amount of Social Security benefits lost to seniors who claim benefits before reaching normal retirement age and while they continue working;

-Forming a National Resource Center on Aging and the Workforce within the Department of Labor to collect, organize and disseminate older worker information;

- Changing how Civil Service Retirement System (CSRS) annuities are calculated by correcting a glitch that results in a disproportionate reduction in benefits for certain employees who phase into retirement by working part-time;

- Requiring states to include older worker representatives on the state and local workforce investment boards and set aside five percent of the Workforce Investment Act (WIA) funds to assist older individuals;

- Expanding eligibility of the Work Opportunity Tax Credit (WOTC) to include older workers; and

- Clarifying that certain defined benefit pension plans can define normal retirement age under their plans as the earlier of (1) the attainment of a specified age or (2) attainment of 30 or more years of service.

Kohl chairs the U.S. Senate Special Committee on Aging; Smith is its ranking member. A recent committee hearing on the bill is available as a webcast [requires Real Player].

Do we really become more set in our ways as we age? Not according to a recent SecurePath by Transamerica survey. The C.U.R.E. Retirement Study (change, uncertainty, risk and retirement education) probed the attitudes of pre-retirees about how they deal with factors outside their control, such as the economy. The survey responses seem to contradict the stereotypes:

• Two-thirds (65 percent) say they’ve gotten better at handling periods of change or uncertainty as they age.
• Half (50 percent) even say they are at their best during times of change and 50 percent find change exciting.
• When asked about their personal philosophy when it comes to finances and money, more than half (58 percent) can relate to the notion of “Nothing ventured, nothing gained,” and 48 percent agree with the statement “No risk, no reward”.
• Nearly three-quarters (73 percent) of pre-retirees say they will handle the change and uncertainty associated with growing older well and two-thirds (65 percent) are confident that even with the uncertainty associated with retirement, everything will work out.

The findings are based on more than 2,000 interviews with working adults over age 50.

If you’d like to know how your change profile stacks up against the averages, you can take the risk quiz here.

Rising demand for health care services from aging Boomers will drive growth in medically-related real estate over the next decade, according to a Grubb & Ellis study. The report forecasts that medical properties will out-perform all other categories of commercial real estate in the years ahead:

“Medical office space is already outpacing traditional office space as
measured by asking rental rates. From 2000 to 2007, asking rental rates for
medical office space grew an average of 2.8 percent per year on average,
while rents for traditional office product grew an average of 1.3 percent,
according to Grubb & Ellis.

“The growing demand for medical services has kept healthcare
construction booming. Norcross, Ga.-based Reed Construction Data reports
that monthly spending on healthcare construction is 20 percent higher than
a year ago.”

The study notes a recent trend away from use of hospital beds in favor of outpatient services, and strong venture capital flows into the health care industry. Download the full report here.

Despite a reeling economy, the job market for college grads is robust, as companies prepare for an expected wave of Boomer retirements. The Chicago Tribune’s Barbara Rose reports that corporate recruiters have “continued to swarm onto college campuses. Career fairs sold out, as employers scrambled to get in front of seniors who hadn’t locked up jobs, as well as sophomores and juniors looking for internships.” Many job candidates report getting multiple offers, and recruiting specialists expect the strong market to persist over the next several years, no matter what happens with the economy. Fueling the market is employer fear of getting caught short-handed as Boomer retirements accelerate. The smaller GenX group coming up behind Boomers won’t fill the gap, so employers want to start grooming the next generation of talent now.

Recruiters probably should calmn down a little, since many Boomers won’t be rushing for the exits unless they’re pushed…and many will be available to work in new flexible consulting arrangements for years to come. Still, as the parent of college-age children, it’s nice to know the job market’s looking good.

Also see…

• Management consultant Bill Byham on brain drain.

• Korn/Ferry survey on re-careering.

Americans saving for retirement aren’t letting the current tough economy deter them from saving more. That’s the conclusion of new survey research released this week by Fidelity Investments. The survey shows that, among current Individual Retirement Account owners, 60 percent have contributed to their IRAs for 2007 or plan to do so. And 32 percent of that group increased the amount invested for the year.

Overall participation in IRA plans still hovers around 40 percent of U.S. households, according to John Ragnoni, senior vice president of retirement products at Fidelity. “We were encouraged by these results,” Ragnoni told me. “It shows IRA owners are still engaged with the retirement savings process and trying to make the contributions that get them on the right path. But we certainly still need overall to get overall IRA ownership up.”

Unfortunately, the lowest rates of participation are among younger Americans who would benefit most from getting an early start on retirement portfolios. Just 32 percent of Americans in their thirties said they are participating in an IRA plan, compared with 57 percent of people in their sixties.

Fidelity surveyed 500 current IRA owners and another 500 people who haven’t opened accounts.

Details on the survey are here.

The Brookings Institution published a study this week projecting growth of older populations in the U.S. in the years ahead. Drawing primarily on U.S. Census data, the study has just about anything you want to know about the demographic Brookings dubs “pre-seniors”–Boomers age 55-64. Highlights:

• Pre-seniors will be the fastest-growing group in the U.S. through 2010, expanding nearly 50 percent in size.
• Fastest growth will occur in the Western U.S. in a diverse range of locations, ranging from larger cities like Las Vegas to smaller towns and counties.
• “Yuppie Senior” populations will surge in big cities like Las Vegas, Denver, Dallas and Atlanta, fueled by high net worth, professional occupations and interests
• Aging in place will be a key growth driver, especially in states like Georgia
• Suburbs in major cities such as New York, Philadelphia, Chicago and Los Angeles will become considerably older in their population mix. However, author William H. Frey acknowledges this trend could be affected in Boomers decide to leave the suburbs and move into cities.

Nothing too surprising here, but there’s a great deal of interesting detail, especially very detailed and useful charts projecting population growth nationally by city, county and state.. Get your copy here [pdf file].