November 21, 2007

THE HIGHER THE BETTER:

Retire at 62? Well... (Rediff, November 21, 2007)

The move to increase the retirement age of government employees from 60 to 62 years, as reported in this newspaper yesterday, can be endorsed on many counts. The average Indian's life expectancy at birth has gone up to over 66 years for men and 71 years for women.

The last decision to increase the retirement age of government employees, to 60 years, was taken in 1998, when life expectancy for the average Indian was 63 years. Another increase in the retirement age now, on grounds of improved life expectancy, is therefore quite logical.

There is also a social reason for postponing the age of retirement: as youngsters study for more years, they are dependent on their parents for far longer than used to be the case. Many family budgets get strained today because the main breadwinner retires before the next generation is settled in life.

The global practice also argues in favour of an upward revision in the retirement age. Several developed and developing countries have raised the retirement age to between 62 and 65 years. While the reasons vary from country to country, one common theme is the experience factor, which needs no elaboration. There are financial advantages as well. An increase in the retirement age will reduce the impact of the annual pension pay-out liability for the government for at least the period by which the retirement age is raised.


Democrats conveniently ignore the fact that the Social Security retirement age was set at very nearly the age of life expectancy.

Posted by Orrin Judd at November 21, 2007 8:47 AM
Comments

We need a movement to tie the Government retirement age to life expectancy across the nation.

Greedy Teachers and Administrators first.

Posted by: Bruno at November 21, 2007 12:50 PM

Bruno, there won't need to be a mandated increase in the retirement age. The Baby Boomers have caused everything to happen since 1946; what makes you think they'll give up the limelight so quickly.

Of course, GenXers like me won't be happy, as few in my age cohort will be advancing to that upper management position that the Baby Boomer is stubbornly holding onto.

Posted by: Brad S at November 21, 2007 12:56 PM
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