(see Poster Gallery) Expectations of Working Longer: A Longitudinal Study in Chile

Background: The accelerated growth of the aging population has created various challenges to societies around the world, including a strain on social security and pension systems. Chile’s aging index in 2050 will be approximately 177% (INE, 2018). Retirement is one of the most important life events that carries significant changes for the individual’s life. Chile is one of the few countries with a merely private retirement system, which has been widely criticized for increasing social disadvantages and inequalities as older adults are more likely to suffer from health issues, unemployment (if they planned to work), and financial insecurity (Vargas, 2020). Chile is among the 10 Organization for Economic Co-operation and Development (OECD) countries with the highest relative poverty rate among older adults (18%), well above the average of OECD countries (~13). Lastly, Chile has the second highest level of inequality, compared to other OECD countries, with a GINI index of 0.43 which is well above the average OECD index, and is one of the OECD countries with the lowest pension amounts (OECD, 2021). This study seeks to explore the factors associated with the expectations of working past the retirement age among Chilean workers. Methods: A sample of Chileans 50+ years of age who were non-institutionalized and stated having a retirement plan (n=6,541; nt=10,969), was obtained from the Social Protection Survey (EPS), which is the oldest longitudinal survey in Chile. Data from waves 2002, 2004, 2009, 2015. For the analysis, we used mixed-effects logistic regression models, using as the dependent variable whether or not the person expected to work once they reached the retirement age. Results: Health is a strong pushing factor for older Chileans. having poor self-reported health (OR=0.59, p<0.05), being diagnosed with depression by a professional (OR=0.82, p<0.05) and increased daily living limitations (OR=0.86, p<0.05), were associated with decreased odds of expecting to work past the retirement age. Additionally, workers with unstable working histories were more likely to plan to continue to work as they might not be able to afford retirement, and wealthier workers were less likely to plan to postpone retirement. We found that those who own a house (OR=0.88, p<0.05) and have APV (OR=0.79, p<0.05) were less likely to expect to continue to work past the retirement age. Those who were currently working were 111% more likely to expect to continue to work (OR=2.11p<0.05) and those with a signed contract were 47% less likely to continue to work (OR=0.53, p<0.05). Additionally, Independent workers were 48% (OR=1.48, p<0.05) more likely to expect to continue to work, while employees were 34% (OR=0.66, p<0.05) less likely to expect to continue to work, when compared to employers. Conclusion: This study provides one of the first overviews to subsequently identify the factors that influence workforce participation, including a reduction in working hours among retirees in Chile.