I don’t understand retirement and all the official rules surrounding the subject.
I hear/read that the number of workers per pensioner in the country is falling, so pension age is moved to being older before you can officially retire.
If the age level increases, then the number of working people increases? Right? Wrong.
Example: 10 people are set to retire. The retirement age is changed to three years older.
These 10 people, if health permits, continue to work.
For the extra three years the retirement age has been extended by, younger people joining the workforce have no job.
Unemployment rate increases.
Now if these same 10 people were allowed to officially retire at the original age set, then there will now be ten jobs available, which will provide employment for the young ones just starting out. Unemployment rate remains the same.
Now if these 10 people were permitted to officially retire earlier, say by three years, then the unemployment rate would remain the same, but also, one or two of the younger ones may branch off and start their own businesses, decreasing the unemployment rate? No?
The benefits of having a younger workforce = better productivity (in theory) = more experienced workforce at a younger age.
More benefits come when you take into account what happens regarding personal spending with a lower retirement age.
Those earning when younger will spend more.
Those retiring earlier will still be fit enough to enjoy their retirement and spend more.
The economy grows.
I know it’s not as cut and dried as I’ve presented it, but as it currently stands with an aging workforce, means more illness = more cost. As more of the 10 people age, they spend less, by not going out, travelling, taking up interests and spending, etc.
I think we are being told about an, “Aging workforce” has more to do with rising retirement ages, than the ability for the younger ones to have work available to them?
I have a vested interest of course. I don’t think I’ll ever get to retire in reasonable health, enough to enjoy my golden years.
So what will I have worked for, for all these years?
Peace of mind? A shorter retirement than those whom have gone before me?
Factor in my assets being used to pay for my old age, again when many of those before me never had to, because of spending decisions of the current lot, the money that would have been there to support us oldies, is no longer there. This results in fewer assets for those younger ones coming through, so again, less expenditure available for the economy.
All around me people are retiring early, those that have bought huge policies, whereas people like me have battled through despite the financial conditions, are now paying for it in more years of toil.
I hope I survive long enough to at least have a few years to do what I want to do and not graft myself into a life of illness or worse.