Countries around the world are beginning up the age of retirement, in order to attempt to hold down the cost of state pensions while encouraging workers to stay at work. Since 1971 the life expectancy of the average 65-year-old in the rich world has improved by four to five years. By 2050, it is estimated that they will add a further three years on top of that. The average retirement age in the OECD in 2010 was 63, almost one year lower than in 1970.
Living longer, and retiring early, might not be a problem if the supply of workers were increasing. But declining fertility rates imply that by 2050 there will be just 2.6 American workers supporting each pensioner and the figures for France, Germany and Italy will be 1.9, 1.6 and 1.5 respectively. The young will be shoring up pensions systems which are riddled with problems- the public-sector pension is a bigger issue in America with a deficit that amounts to $3 trillion.
3 comments:
I agree with this movement entirely - the retirement age was where it was because people often couldn't work at 65. However, ,many people who hit retirement age can keep working and often do - volunteering or at home.
One thing I've noticed is that in countries without social security, the older generation pushes on and keeps working and moving. Knowing that when your older, if you stop moving your health quickly declines. Therefore, wouldn't it be in our best interest, health wise, to keep moving ? Maybe this is why Asian elderly people live longer......
Raising the retirement age could be an issue since it creates further unemployment for the young population. Take Japan as an example; due to the lifetime employment system, many firms have to remain the elder workers whose productivity has been decreasing and refuse to accept younger ones to limit labor costs. However, although the elder workers are more experienced, the younger generation are better at catching up with modern technology and tend to be more creative and stronger to endure stress than the elders.
I agree with Bree when saying that raising the retirement age might not be such a bad idea. On average people are living loner lives now than before and an increase in the retirement age could just be a natural adjustment as a result of that.
Having said that, a higher retirement age could have a positive association with the unemployment rate.
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