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Abstract:The German population is ageing due to decreasing birth rates and increasing life expectancy. To sustain the German pension system, legal retirement age is increased step by step to 67 years. This raises questions about how to enable and motivate older individuals to work that long. Hence, it is important to understand whether they represent a homogeneous group that can be addressed through specific measures and instruments. Life-span theory points to systematic changes as well as increased heterogeneity with age. For example, work motivation does not generally decline with age but becomes increasingly task-specific, depending on changing life goals and individual adaptation processes in adult development. In this empirical study we analyse age heterogeneity with regard to current life satisfaction and life satisfaction domains (measured as satisfaction with work, income, family and health) that represent personal utilities individuals strive for. For our analysis we use data collected as part of a representative German longitudinal data study (SOEP1). We find increasing heterogeneity in current life satisfaction, satisfaction with work, family life, and health with age. Thus, common mean level analyses on age effects yield only limited informative value. The heterogeneity of older adults should be taken into account when motivating and developing older workers. A life-span perspective on life satisfaction 3 hence, individuals within age groups may well lead very different lives. As a consequence, organizations need to think beyond mere age-compensatory measures (i.e. for cognitive and physical functioning) for their older workforce and appreciate the heterogeneity of their older workers.Our paper will first provide a short background on observations of age instabilities and life satisfaction research. With regard to central theories of regulation across the life-span we shall then postulate our hypotheses and expected findings. Thirdly, we conduct analyses to test our hypotheses and discuss results with regard to previous findings on the subject. The paper closes with a conclusion, delineating implications for organisations and policy-makers and outlining directions for further research. Age instabilitiesStudies from various disciplines suggest that as people age, they become more heterogeneous, so looking only at measures of central tendency may hide the actual differences (see meta-analysis by Nelson & Dannefer, 1992). This decrease in inter-individual stability can be seen as a natural development as older individuals will have led different lives that made them adapt their behaviour and attitudes. The variation between individuals (inter-individual stability) can be distinguished from the changes within an individual that may also occur over time (intra-individual stability). In their meta-analysis of empirical studies on age changes in human behaviour and performance, Bornstein and Smircana (1982) note the general focus on mean behaviour over time and the lack of studies that analyse the variance...

Germany, relying on a pay-as-you-go pension system has increased regular retirement

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