Understanding the Downshifting Phenomenon: A Case of South East Queensland,Australia

A quality of life survey of a sample of households across the Brisbane‐South East Queensland region has identified about 28 percent of people as ‘downshifters.‘ They are defined as people who voluntarily make a long‐term change in their lifestyle – other than planned retirement – which reduces income and adjusts their lifestyle conditions. A typology of downshifters is developed on the basis of their motives for downshifting and their socio‐economic and demographic characteristics using a Two Step Cluster Analysis. Results indicate that the social and economic circumstances and the reasons and methods of downshifting tend to vary substantially across the clusters.     

Why bother to ‘downshift’? The characteristics and satisfaction of downshifters in the Brisbane-South East Queensland region,Australia

Using the data collected as part of a Quality of Life (QoL) survey in the Brisbane-South East Queensland region (SEQ) of Australia, this paper examines differences in satisfaction levels between downshifters and non-downshifters, and identifies socio-economic predictors of the downshifting phenomenon. Almost 30% of survey respondents are classified as downshifters. Multivariate Analysis of Covariance reveals significant differences between downshifters and non-downshifters in a number of life-satisfaction domains, although the degree to which they were satisfied with their life before downshifting is unknown. Analysis of Covariance shows that downshifters reported a significantly lower level of satisfaction than non-downshifters, especially with respect to satisfaction with the amount of money available to them, independence or freedom, and employment. Multivariate logistic regression analysis reveals that post-secondary education and employment were positively associated with downshifting, while age was significantly associated with downshifting. It is argued that if downshifting is associated with lower levels of satisfaction, intervention may be required to initiate programs to engage downshifters more fully in the workforce by facilitating more flexible work arrangements and an improved working environment.     

Employers and the Management of Retirement

In the UK early withdrawal from the labour market is seen as a risk and a cost, worsening the dependency ratio, raising public and private pension costs and threatening additional welfare expenditure over the longer term. Explanations of the retirement process have focused on the welfare state and the impact of pensions and other social security policies. This paper argues that a missing actor in these accounts is the employing organization. Early retirement in the UK has been predominantly driven by the labour requirements of employers rather than state policies to encourage older workers to take early retirement. There is a case for arguing that significant change in retirement behaviour in the UK will come primarily from the modification of employers’ policies. This research is a case study of three employers: one public‐sector and two commercial. It examines the dynamics of the retirement decision. This paper reports the public‐sector case. The findings indicate that employers, in order to reduce their pensions liabilities and stem the cost of early retirement, are trying to regain control of the retirement process. The employees interviewed felt they experienced little choice concerning their retirement, had limited knowledge of the options open to them and found pensions complicated and confusing.