Retirement age is a very delicate and vital stage in the career of a man. There has been intense discussion recently across various sectors to increase the retirement age of an employee. Due to the reason that life expectancy is increasing continuously, efficiency is improved, and the skills required in continuous use are to be considered towards increasing the retirement age by government as well as private organizations value.
Need For Increase In Retirement Age
Raising life expectancy and improving health: Today, an average individual is expected to live longer since modernized medical facilities and better lifestyles keep employees quite healthy and well able to work even beyond 60 years. Under such a condition, the both organization and the nation should benefit from their efficiency and experience.
Contributions of skilled and experienced employees: Employees mature over the years and are valuable assets for the organizations. Their specialty, decision making, and ability to train the workforce may prove to be of utmost importance to a new age. If empowered, these employees will be able to serve both the organization and the economy well.
Implication of the pension and social security increase in the retirement age: Increasing the retirement age would lighten the government and the private organizations’ burden regarding pension schemes and social security. Employees who remain in the organization for a few years will accumulate more savings in their pension funds and withhold for a longer time the expected withdrawal after retirement.
The impact on youth unemployment: Most believe that increasing the retirement age would limit opportunities for the younger generations to win a job. However, this can be avoided if the changes are implemented gradually, with older employees placed in mentorship roles.
In Which Sectors Is The Increase Taking Place?
Some states and organizations are already taking steps to increase the retirement age. It is under consideration for increasing the retirement age of government employees in most departments from 60 to 62 or 65 years. Many other private companies are making it contract-based services to retain experienced workforce for a longer term.
Raising the retirement age is the need of the hour. This would not only find a right utilization of the experience and the skill which employees have over the years but would also lessen the financial burden on the pension and social security schemes. While implementing this, however, there should be a balance kept in mind about youth unemployment.
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