Retirement Preparation Programs: Issues in Planning and Selection

Helen Dennis A n d r u s Geron to logy C e n t e r

The field of ret irement planning is expanding. One of the major rea- sons for the increased interest in ret irement planning is related to the increase in the number of Americans taking early retirement. This early ret irement trend is reflected in the declining labor force partici- pation role of men 55 years and older. A recent survey by the Confer- ence Board substantiates the continuing trend toward early retire- ment. Survey results indicated that the average ret irement age was 62 years or younger for 51% of the companies participating in the survey - - a pat tern reported by only 23% in 1972 (Rhine, 1984).

Several factors are responsible for the early ret irement phenome- non. Heal th problems and the availability of pensions and Social Secu- rity benefits are primary reasons. Recently, we have seen examples of large corporations offering financial incentives to encourage early re- t i rement as a way to reduce the total number in their work force. Other reasons for ret irement include: a spouse is retiring; workers feel they have made their productive contribution; changes in job responsi- bility and function; boredom; changes in management; compe t i t ion from younger workers; relocation of the worker and relocation of the organization (Beutell, 1983).

Ret irement planning programs and services are increasing in num- ber and breadth to meet the growing needs of middle-aged and older workers faced with the decision to retire and the challenge to plan for the next 20 to 30 years of life. Those responsible for ret irement prepa-

A project director and lecturer on ret irement planning at the Andrus Gerontology Center, University of Southern California, Helen Dennis is also national president of the International Society of Preret i rement Planners.

Journal of Career Development, Vol. 13(2), Winter 1986 30 © 1986 Human Sciences Press

H e l e n D e n n i s 31

ration services are in a position to facilitate that process--by design- ing and selecting the most effective program for their clientele to pre- pare them for the future. This article identifies and describes eight issues relevant to retirement preparation programs that can be used for program planning or setting criteria for program selection.

1. Rationale for Offering Retirement Planning Services

Information about company benefits. In the 1950's, retirement plan- ning frequently consisted of a one-to-one dialogue between the benefits specialist and preretiree for the purpose of informing the employee about his/her pension. Additional impetus for retirement planning occurred with the passage of the Employee Retirement Income Secu- rity Act (ERISA) in 1974, requiring employers to inform employees about their pension benefits. Although an exclusive financial approach to retirement preparation is considered a narrow view in the planning process (Research & Forecasts, Inc., 1979), information about company benefits remains a significant reason for presenting retirement plan- ning programs.

Employees' expectations. Companies have provided services in response to employees' expectations for retirement planning programs--a new employee benefit. For many employees, preretirement counseling is as important as their insurance and pensions (Perham, 1980).

Social responsibility. Another factor motivating employers to provide retirement preparation programs is their sense of social responsibility. These employers assume some responsibility for their employees' tran- sition from employment to retirement. Typically, these employers are interested in employee satisfaction and fulfillment on the job, as well as in retirement.

Stability of pension benefits. Gurman and Johnson (1984) recommend that the "decision to implement formal pre-retirement training pro- gram(s) should be based on the organization's intermediate and long range strategic financial objectives related to pension planning" (p. 14). They suggest that unsuccessful retirements are responsible, in part, for the continuing pressure to increase pension benefit payments. Participation in retirement preparation programs particularly in the area of financial planning is likely to enhance "successful retirements" and diminish the pressure for pension increases.

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Encouraging early retirement. Retirement planning has been used to encourage early retirement. Although employers rarely present this rationale publicly, it is frequently part of an incentive program to en- courage employees to leave their company prior to the usual retire- ment age. During the recession of 1982-83, hundreds of companies viewed the early ret irement window as a better alternative than lay- offs (Kolton, 1985).

2. The Planning Process

Approximately one quarter of the time spent for adult education pro- grams should be devoted to goal setting and program planning to in- sure that the program reflects educational "wants" of the participants. This amount of time for planning rarely occurs for retirement prepara- tion programs. In most cases, the program has a fixed curriculum based on the assumption that ret irement specialists know the needs of retirees from their experience, the l i terature or "having been there."

Retirement planners generally agree that finances and health are consistently the two priority topics in ret irement planning. However, there is less agreement on the extent of interest in housing, career de- velopment, relationships, legal issues and use of time. When planning a program, the ret irement specialist must decide which topics to in- clude and to what extent each topic will be covered. Assessment of par- ticipants' needs can provide important information to make such deci- sions.

The assessment may take the form of a questionnaire which lists topics that can be prioritized by the respondents. Another type of in- s t rument addresses needs rather than specific content areas (Knowles, 1980). A third type is a paper and pencil test that lists the feelings and concerns of respondents in relationship to instructional activities (Pe- terson, 1983).

Unfortunately, the planning process for program development is fre- quently short-circuited. Many employers want a packaged program and do not want to spend the time or money on program development or modification. Second, employers may not have a knowledgeable staff to respond to the results of a needs assessment. Third, since there are a number of programs available that have been used with employ- ees similar to employers' preretiree population (Dennis, 1984), the need to discuss program development and assessment of needs may be minimal.

One of the greatest unintentional benefits of determining the needs

H e l e n D e n n i s 33

of pre-retirees is that the process of assessing needs and conjoint pro- gram planning "buys in" the participants. The program becomes "their" program. The involvement of participants in this planning pro- cess is likely to increase program relevance and achievement of objectives.

3. Objectives

Objectives serve the important function of stating the intention or expected outcomes of the ret irement planning program. More specifi- cally, they usually state what a person can do in a certain time period and how it will be measured (Peterson, 1983). Clearly, the develop- ment of program content and assessment of program effectiveness are dependent upon the objectives. Objectives can be established from two points of view. The first type of objective deals with the outcome of the entire program from the institution's perspective. In retirement planning, the program objective reflects what the employer wants to achieve. For example, the employer may want to increase or decrease the number of ret irements within the organization by a certain per- centage. The second type of objective is a learning objective which re- flects what the individual can do as a result of participating in the pro- gram. For example, the individual may develop a financial plan, enroll in a health promotion class or improve his or her att i tude toward re- tirement.

4. Instructional Methods

Instructional methods used in retirement preparation programs vary according to the needs and objectives of the pre-retirees, teaching preferences of the instructor and participants, availability of instruc- tional materials and the size of the group.

Lynch (1977) has described four conceptual models of instructional methods used in ret irement preparation programs. The presentation audience mode emphasizes the presentation of information, usually in a lecture format. The flow of information is usually from the expert to the audience with no involvement of participants. The stimulus discus- sion mode still presents information, but includes questions from the audience and encourages participation and dialogue. Lectures, films and audiotapes with group participation are examples of this mode. The workshop mode involves a group of persons working together without a facilitator on common concerns. The content usually focuses

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on feelings and att i tudes rather than facts. The facilitated interaction group mode emphasizes self-awareness and problem solving skills in relationship to ret irement issues shared by the group. A trained facili- tator works with the group.

In a study by Tiberi, Boyack and Kerschner (1978), the four instruc- tional modes were tested to determine specific outcomes related to each one. Using measurements of information gained, and changed at- t i tudes and behaviors, the investigators reported the following results:

1. facilitated interaction and stimulus discussion modes were more ef- fective in changing behavior;

2. facilitated interaction and presentation audience were more effective in increasing information about retirement;

3. presentation audience had a negative effect on attitudes toward re- tirement.

These conceptual models and research results indicate that the se- lection of the instructional method should be closely related to what one wants to achieve in the ret irement planning program. If the objec- tive is to affect knowledge, att i tudes and/or behaviors, the choice of the instructional method either can help to achieve the objective or act as a deterrent.

5. Evaluation

Given the era of greater accountability to employers and funding agencies, evaluation of ret irement preparation programs is becoming increasingly important. Retirement specialists are having to answer questions from employers such as:

- - W h a t difference will the program make to my employees? To my or- ganization?

- - W h y should money and time be invested in this program? - - I s this a program just to make people feel better for a short period of

time? - - O u r training budget and corporate social responsibility budget has

been cut. Why should we continue this program?

Evaluation of ret irement preparation programs can address these questions. However, "the quality of the evaluation is determined by the clarity and precision with which the needs are identified, the objec- tives are specified, and the activities are completed" (Peterson, 1983, p.

H e l e n Denn i s 35

218). An evaluation which is an afterthought to the program is one that usually focuses only on the participants' immediate reaction to the program experience.

There are two purposes for evaluating ret irement preparation pro- grams. First, evaluations can determine how well program activities are carried out and second, how well the objectives have been achieved (Peterson, 1983). The evaluation design will depend on which purpose is being addressed. The extent to which activities are carried out helps the program developer determine if changes should be made in the pro- gram to enhance program efficiency. The extent to which objectives have been met measures program effectiveness or impact.

In determining impact of the program, objectives and subsequent evaluations fall into three broad categories: at t i tude change, acquisi- tion of knowledge and/or skills and behavioral change (Jackson, 1984). For more information on methods for data collection and timing, see Jackson (1984) and Peterson (1983).

In planning the evaluation, it is important to identify the audience. Who will receive the results? Possible audiences include funders, em- ployers (usually human resource personnel), present and future partic- ipants, ret i rement specialists, guest speakers, researchers and stu- dents.

6. Physical Location

At least two major decisions are required regarding the physical location of the ret i rement planning program: first, the specific geographic location and second, the design and arrangement of the room(s). Programs are frequently held at the employer site. The ad- vantage is easy access by employees; the disadvantage is that employ- ees may have greater difficulty disengaging from their work and at- tending to the program. Off-site locations in hotels and community buildings are advantageous in bringing a group together in a new en- vironment, free of stresses from the work place; disadvantages are the cost of the room and equipment rentals.

The room design and arrangement of tables and chairs should reflect the specific needs for the instructional activities. For example, if the program uses a lecture format exclusively, theatre style arrangement of chairs is appropriate. If an interactive process is part of the instruc- tional activities, round tables or tables arranged in a U formation would facilitate the process.

36 Journal of Career Development

7. Resources

The number and variety of resources available to ret irement special- ists is extensive. Audiovisuals, books, magazines, journals, organi- zations and informal networks provide information about research, model programs, content areas and community resources (Dennis, 1984). The challenge for ret irement specialists is to access the re- sources and be able to select and utilize those which are most appropri- ate for the ret irement planning program. For more information on re- sources, see Humple (1984) and Allyn (1984).

8. Leader Qualifications

The ret irement specialist can assume one or multiple leadership roles as program developer, coordinator, administrator, instructor and/or evaluator. The following qualifications are recommended for the ideal leader.

- - T h e leader has participated in a formal education program in retire- ment preparation, including course work in gerontology, adult edu- cation and ret irement issues.

- - T h e leader is knowledgeable about the normal aging process, in- structional methods, principles of adult education, topics in prere- t i rement education, ret irement issues, adult development and com- muni ty resources.

- - T h e leader has skills and has demonstrated competence in group process, communication, evaluation, administration and public speaking.

- - T h e leader believes that most middle-aged and older adults are able to solve their problems and manage their own lives.

- - T h e leader is experienced in program development and implementa- tion.

- - T h e leader is aware of his or her limitations and refers problem cases requiring specialized skills to appropriate professionals.

- - T h e leader has completed his or her own ret irement planning.

S u m m a r y

The criteria for judging and selecting ret irement planning programs and services are summarized:

Helen Dennis 37

1. A rationale for ret irement preparation is established. 2. The planning process includes input from preretirees. 3. Objectives are stated as outcomes of the program in measurable

terms. 4. Instructional methods support the objectives and are consistent

with principles of adult education. 5. An evaluation plan is designed to determine program impact. 6. The physical location is stated and justified. 7. Knowledge of resources is demonstrated by the ret irement special-

ist. 8. The ret irement specialist is knowledgeable in areas of gerontology,

adult education and content of ret irement planning; is skilled in group process techniques and program administration; and believes in the competency of middle-aged and older adults.

Although the eight considerations for program planning and selec- tion are not inclusive, they can serve as a guide for the new or experi- enced person in presenting ret irement education programs to adults. With the growing needs and uncertainties of preretirees regarding their future, the provision of effective ret irement planning services is a significant challenge that can be met by retirement educators, plan- ners and counselors.

References

Allyn, M. (1984). Using audiovisuals in retirement preparation programs. In H. Dennis (Ed.), Retirement preparation (pp. 159-166). Massachusetts: Lexington Books.

Beutell, J. (1983). Managing the older worker: Personnel policy implications from a sur- vey of ASPA members. Personnel Adm#~ istration, 28(8), 31-39.

Dennis, H. (Ed.) (1984). Retirement preparation. Massachusetts: Lexington Books. Gurman, R. E., & Johnson, S. P. (1984). Pre-retirement planning programs: A finan-

cially prudent approach to pension and benefit planning. Employee Benefits Journal, 9(1), 14-17.

Humple, C. S. (1984). Resources and networks for the preretirement planner. In H. Den- nis (Ed.), Retirement preparation (pp. 167-187). Massachusetts: Lexington Books.

Jackson, M. (1984). Program evaluation. In H. Dennis (Ed.) Retirement preparation (pp. 167-188). Massachusetts: Lexington Books.

Knowles, M. S. (1980) The modern practice of adult education. Chicago: Association Press.

Kolton, E. (1985, April). An offer they couldn't refuse. Inc., pp. 155-156. Lynch, J. H. (1977). Pre-retirement education: Issues in nomenclature and methodology.

Paper presented at the annual meeting of the Western Gerontological Society, Denver. Perham, J. C., (1980, May). The newest employee benefit. Dunn's Review, pp. 72-80. Peterson, D. A. (1983). Facilitating education for older learners. San Francisco: Jossey-

Bass.

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Research & Forecasts, Inc. (1979). Retirement preparation: Growing corporate involve- ment. New York: Corporate Committee for Retirement Planning.

Rhine, S. H. (1984). Managing older workers: Company policies and attitudes. New York: The Conference Board.

Tiberi, D., Boyack, V. L., & Kerschner, P. A. (1978). A comparative analysis of four preretirement education models. Educational Gerontology, 53, 355-374.