Empowered to Stay Active: Psychological Empowerment, Retirement Timing, and Later Life Work.

Abstract

Motivating older employees both to prolong their working lives and to stay active even after retirement has become increasingly important due to rising old-age dependency ratios. Later life work-including both paid work and volunteering-has thus become an important topic for scholars and practitioners. We aim to extend research on later life work by hypothesizing that psychological empowerment at work increases not only desired and actual retirement ages but also levels of later life work. Second, we test differential effects of psychological empowerment on later life work, expecting it to be more strongly related to paid work after retirement (i.e., bridge employment) than to volunteering. Third, we suggest that the relationship between psychological empowerment and bridge employment depends on the employees' level of physical limitations. We used data from a longitudinal panel study in Germany in which structured telephone interviews were conducted. A sample of older individuals who had retired between two waves of measurement was drawn (time lag: three years; n = 210). The results of a path analysis support the postulated mediation. Furthermore, as expected, psychological empowerment more accurately predicted bridge employment than volunteering, and physical limitations moderated the relationship between psychological empowerment and bridge employment. Lastly, additional analyses on the individual empowerment facets revealed that only the competence facet played a significant role in the proposed hypotheses. Overall, our findings suggest that psychological empowerment may help to increase older employees' motivation to delay retirement and to stay active even after retirement.