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Domain meson C9 013 19.5 Preparing for.Retirementi Crisis or ,Challenge? , Usaring'Before-the Subcommittee on:Retirement Income.. and Employment of the Select Committeeon Aging, souse of RePros'eptatiyett4-NiteiY-pifthCongress, .SeCOnd.SesSiOn, June 19, 1978 -* ERSITOTION. COngkeis of the. U.S., Wadhington, D.0. HouseAelect COkimittee.ou-Aging. - -408'.DATE .19 Jun 78 ! , ' NOT! .219-p-,-;-,lotava-i-lable=i-nAlardcopy-d-usto targinAi. legibility:of originaldoctilient 'ATAILABLE FROM Superintendent of DocuRents,W.S..Government Printing Office, Washington, D.C. ',20402.- . IDES PRICE Postage.... pc. Not AVailOble.from EpPs. DESCRIPTORS' erontology; Incoie4 *Indilidnal Needs; *Lift Older Adultsi.PersOnal AdjUstment; *Quality of *Retirement:: Self Actualization ^' ABSTRACT . The materials contained in these bearings 'represent the statements of witnesses before one of the Subcommitteesof the Committee on Aging of the House of Representatives.Witnesses pclude members of-Congreis, persons affiliated with the Adainistratipnop Aging.and,ths U.S. Civil Service Comiissidn, representativesof various labor unions, those working with several gerontologyprograa 'andmational .associations fOr retired programs, andistateand local governient officials. The statements addressthe following areas of coucerfi:prefetiremeiet planning, financial andinsurance needs, u leidure:time, health, social relations and personal safety. Specific-models and suggestions for Trerstirement educationprogr as are included in the appendices. (HLM) . .4 N T . " .' Z 4 4, . J. o . / *******44************************************************ *************. :-*-: Reproductions. , supplied °)by EDRS'are,iLihe.beSt :that'da )5e4414 .-*. * -: fiOm the.original document. * ************************144******************.**********At***10**111*****, . 1 PREPARINGFOR RETIREMENT: CRISIS OR CHALLENGE? REARING BEFORE THE SUBCOMMITTEEON RETIREMENT INCOME AND EMPLOYMENT OF THE SELECT COMMITTEEON AGING $017§E,OFREPRESENTATIVES NINETY- FIFTH, CONGRESS SECOND SESSION- . JUNE 19, 1978 Printed, for the use pr Siteet Committee on Aging Comm. Pub. 95-150 OF HEALTH. U.S. DEPARTMENT EDUCATION I WELFARE NATIONAL INSTITUTEOF EDUCATION HAS BEEN REPRO- THIS DOCUMENTAS RECEIVED FROM DUCED .EXACTLYORGANIZATION ORIGIN- THE PERSON OR VIEW OR OPINIONS ATING j.T POINTS OF NECESSARILY REPRE- STATED DO NOTNATIONAL INSTITUTE OP SENT OFFICIALPOSITION OR POLICY EDUCATION U.8. GOVERNMENT PRINTING OFFICE 21477 0 WASH/NalpON: 1978' For sale by the Superintendent of Ddeuments, U.8. Government PrintingOffice. Washington, D.C. 20402 SELECT COMMITTEE ON AGING . , CLAUDE PEPPER, Florida, Chairman . EDWARD R. ROYBAI,., California WILLIAM d. *AMPLER, Virginia, FRED B. ROONEY, Pennsylvania ,.." A Ranking Minority Mimbir..,. MARIO BIAGGI, New Yoik '- JOHN PAUL HAIOUT, Arkansas N(ALTtt IfLowElig, Alabama S-COREIy tie IKE F. ANDREWS, North Carolina RONALD A. BARMEN, Oa inectiout JOHN L. BURTON, California WILLIAM F. WALSI1, New York , EDWARD P. BEARD, Rhode Island CHARLES E. GRASSLKY,loWn MICHAEL T. BLOUIN, Iowa JAMES ABDNOR, Naltp: DON BONKER, Washington THAD COCHRAN, MiWslippi ' THOMAS J. DOWNEY, New York MATTHEW J. R.INALDO, New Jersey JAMES' J. FLORIO, New Jersey MARC L. MARKS, Pennioivanis . HAROLD FKFORD, Tennessee RALPH S. REGULA, Ohio WILLIAM J. HUGHES, NewJersey **ARUM LLOYD, Tennessee JIM TINI, Nevada TEDRSANISEN1100VEICOklahoma ROBERT F. DRINAN, Massachusetts .DAVID W. 'VANS, Juliana 'HEWN a NowJets MiiITTY RUBIN/ Minds STANLEY N. LUNDINE, New York MARY PARE DAKAR, Ohl° 41' Roam S.Wenont, atoff Director Jaws A. Beireouc Assistant to the Chairman -EDWARD F. HOWARD, General Counsel Wean' A. GUNTRARP, PH. D., Minority Staff Director Suscosnarru ON Rernessar Imo= AND EMPLOYMENT FRED B. ROONEY, Pennsylviuda, Chairman . WALTER FLOWERS, Alabama WILLIAM C. WAMPLER, Virginiai JOHN I. BURTON, California . Ranking Minority Member 4 DON BONKER, Washington CHARLES E. GRASSLEY, Iowa 'THOMAS J, DOWNEY, New York THAD COCHRAN, Mississippi pAVID W. EVANS, Indiana RALPH S. REGULA, Ohio MARY ROSE OAKAR, Ohio - JAMES 4 FLORIO,'New Jersey Kum C. McDownna., Majority Staff Director NANCY E. Home, Minority Staff Director 'CONTEN'TS 141113011111 OPZNINCI STATEUZINT8 . Chairman Fred B. Rooney William a Wamplei ). 2 . .. -1 --unnonoienneAt-Lurtor-Wirsisszr '' Hon. Del daimon, A MemberCongress from the State of California Hon. Jos Skubits, a Member of Congress. fromthe State of kcansas Robert.C. Benedict,L _Cominissibner on Aging, AdministrationonNV, DePart- mend of Heal tk Education, and Welfare i a- Erma H. Poston1 Ommisidmw; U.S.'Civil.Sereide Commission, secoiniaiCied by Theme TinsieY. Mater, Bureau ef.Retirenient Insurance Health. and Occupational V=IIIgee.Boyack, Ph. D., prqject director, 18 Preretirement EduCation andLife , . ' Southern= Ethel PercYydr,us Gerontology Center,tioiversitycof BettYAieker, Richmond Times Dispiitr.h, Richmond,Va . 17 PauF1L : Wagner, .coMmunitz,, action department,' lJnited Automobile, Aerci apse., and Agricultural Implement Worker* of Ali*ica, . L. Olab.Ph:'D accomied by Joel workers de , consultant, iirement planning project, retired and 'older t, United A- to Workers 27 . Gene T. Fisher, staff repreisenta ve, United Steehrorkeri Ernest D. Bauer, Prerstirdnient Education of America al. 81 Hartford,Conn Department, State of Connecticut, Andrea Oliver, Maier's' office for senior 84 citizens and lianctieapped, Chicago,...-- -- 89 Albert Peterson, .Action 'for Inds t Maturity, and the American Associ- ation of Retired Patrons, Wes in 'iltaff risultan t n, D.C., accompanied .by John Martin, . " 48 ApPINI)109 , Appeiniiii i. Chionokigical listof witnesses' prepared statements: Robert C.k. Bitr-BoyackenediCt % 47 Paid A. wiener 59 Ernest D: BM* '' ,.. 79 Andree,Oliver 100 Albert E. 123 . Appendix. 2. -Additional. a 136 aterial received for the record: . .. WOodrOw W. Hunter, Professor and Research Scientist,Institute of Geron-, taloa. UniVersity of statement 145. 't Marvin D. Verona., director, t Studies, Division, IndustrigRela! . tions Center, T _he University chicago -; ' , ' 465- Louis Robert Baker,' formerly. Gidef; Retirement Secti"on,U.S. Information Agency, DOW retired, letter 181 Objectives". A Planning Process and Checklistfor Retirement tied by Virginia Lee Boyack. t End of the Rainbow or End of the Road?" Submitted 184 Booker by Betty . 192 am . PREPARING FOR RETIREMENT:- CRISIS` OR CHALLENGE? J MONDAY,-JUNE 19, 1978 U.S. HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON RETIREMENT INCOME AND EMPLOYMENT, OF THE SELECT COMMITTEE ON AGING, s' Washington; D.C. The. subcommittee met, pursuant to notice#at 9:30 a.m., in room 2203, Rayburn House Office Building,the }lonorable - Filed -B. Rooney (chairman of the subcommittee)presiding. Members present:Representatives Roonby of Pennsylvania, Grassley of Iowa, and Regula of Ohio. OPENING STATEMENT OF CHAIRMAN FRED B.ROONEY' Mr. ROONEY. The subcommittee is meetingthis morning to deter, mine how the goal of adequate retirementpreparation for every American can be best achieved. The concept of retirement preparationhas gained greater signifi- cance as a result of several interrelated factors: Thegrowth of an aging society, the trend toward earlierretirement, the enactment,. of Federal legislation liberalizingmandatory retirement policies, and recent development's in Social Securityand public and private pensions affecting coverage and benefitsfor. retirees. ft has become increasinglyapparent that with all of-the- finaq- cial, social, and psychological ramifications.of retirement by 'choice, it is essential to plan for that lifestage which could total ane quarter or even one-third of an individual'slifetime. Moreover, increasing oppcirtunities forsecond careers, job shar- ing, part-time employment, and otherflexible work options ar4 likely to make an individual's retirementplans even more complex. 'Ideally, retirement planning should beginin one's early wirking years anti ,continue throughout the life cycle. Inmy opinion, the ; challenge we face as a society is toincorporate retirement prepara- tion into .the total human life cyclein such a manner that the actual event of retirement signifies financial security and self-. t fulfillment rather than crisisor trauma. rio. I have here a prepared statementfront- our ranking minority member William C. Wampler, that Iwould like to submit for the record at this time. , [The prepared statement of RepresentativpWilliam C. Wampler follows:) (1) A 2 STATEMENT OF REPRESENTATIVE WILLIAM C. WAMPLER Mt. Chairman, I wish to commend your outstanding leadership in scheduling tpday's hearing on -Preparing for Retirement: Crisis or Challenge. With approxi- mately 11 percent of America's population 'age 65 and over and increased life expectancy, pre-retirement planning is becoming an augmented necessity. Legisla- tion, recently enacted, banning mandatory retirement in the Federal sector and increasing the age for private, sector employment to 70, will allow older Americans greater freedom of choice in retirement. Planning for retirement will be essential in exercising future employment and:retirement options. I am concerned that we not only focus our attention on those individuals immediately anticipating retirement, but also encourage younger employees to consider pre-retirement planning for the future. I wish to extend my sincere appreciation to each of our distinguished witnesses, who repreient a wide spectrum of knowledge and experience in the pre-retirement field. Today we hope to assess the need for pre-retirement planning,