Category: Retirement

Reflections on Whether Retirement at 65 Should Be Compulsory

Many countries have their alternative ways of evaluating their workers. Basing on the country’s laws and policies, some have set the age of sixty years whereas others set the age of sixty-five years because the retirement age for public servants. an honest example is that the Asian and European countries with the retirement ages as sixty and sixty-five years severally.

Since the thought of the health standing of a person stands to be the premise for my argument. Then the simplest retirement age stands to be sixty-five years and will be created obligatory for any employee. This is often as a result of the individual has begun to age therefore complications like stress has begun to rise. The individual is visaged by a myriad of health complications such pains and aches that reduces the standard of service delivery.

Also, this age is appropriate thus on enable the freshly freshmen and ladies from schools and people aspiring for the use opportunities to induce an opportunity (Bokum & Bartelings, 2009). If this is often corrected at this stage, then the economy of the country is simply sustained thanks to equality in financial gain distribution across the ages. Besides, the age provides the worker an opportunity to own time for interaction with the family. This results from outlay a lot of his/her time on job and nation building. However, a personal retiring at this age is old and may still work higher if given an opportunity. In keeping with Emily (2011), creating this age obligatory for retirement could render several organizations with less old employees.

Many employers believe that employees who are sixty years and older, aren’t any longer productive in their job. Additionally, they’ll impose danger not solely to themselves however conjointly towards their colleagues. However, this could not be the case and it’s not a permissible reason to deny workers’ rights. If safety measures are properly determined, it’s sure that accidents would be avoided. Moreover, if management observes that a worker is not any longer capable of doing his task, they will be very tempted to send the employee into an improvement set up or delegate the person to an edge wherever he might be more economical. As an example, if a supervisor notices their worker is simply too recent to drive, the person ought to be transferred to a designation that is lesser at risk of danger like a document controller. Aside from the facet of productivity at work, individuals conjointly tend to urge additional sensitive once they reach seniority. They do not need to be dependent to their kids. Moreover, neither do they need to be a burden to their families. Most senior need to feel their presence is appreciated, particularly at the last stages of their lives. Thus, they must not be bereft of this sense.

In conclusion, the benefits of constructing this age an obligatory retirement age out ways that the disadvantages. Therefore, sixty-five years old ought to be created obligatory for retirement. Personally, I suppose that retirement ought to be a voluntary alternative and authorities or employers ought to be there to assist the requirements of staff for them to continue their jobs, rather than discouraging them. An individual is deemed to be happier and glad if he retires in his own can.

Reflections on Whether There Should Be a Mandatory Retirement Age

Do you ever wonder when is the best time to retire from work? Can you envision yourself sitting in a rocking chair, having idle time and reflecting since the day you were born? Mandatory retirement for workers over the age of 65 is ideal in today’s society. A law that enforces a mandatory retirement will help today’s generation and many more to come in the near future because as workers pass the age of 65, they become no longer physically and mentally capable, their knowledge becomes outdated and they take up most of the jobs causing unemployment.

It is a well-known fact as a person’s age increases, they become no longer physically capable of doing their job. Employees over the age of 65, will have a greater chance of being plagued by many different health problems. As a result, these employees will require to take days off work due to injuries or sickness absence. Jobs that require employees to possess different kinds of skills: precision, hand-steady movements, working under pressure, etc. Clearly, these skills will disappear as a worker’s age increases. Those who have jobs such as surgeons, judges, military personnel, etc. they consequently are endangering not only their lives but the lives around them. These jobs are too dangerous and require high levels of physical and mental skill for a feeble mind and a degrading body.

Aside from being unable to withstand the difficulties of a job. As every aspect of the world steadily changes, the knowledge of people over the age of 65 becomes obsolete. Today, we live in a society where technology is a constant necessity in our daily lives. With technology becoming more advanced in today’s modern world, older employees who have particular jobs such as doctors, surgeons, and military personnel fall behind by not having the knowledge to work this new technological equipment. In addition, teachers are also not benefitting students due to teaching methods being taught which has become outdated. This results in, students not having the opportunity to attend university or have trouble finding a good job in the near-future. As a person age increases, they become more incompetent since they are unable to willingly adapt to current work flow situations since they rely on their knowledge based off the past. This result in poor decision making and also becoming a potential danger to themselves and others.

In Canada, the number of available jobs at any given time is limited for anyone. Some people may disagree with the idea of a mandatory retirement and may say that they need to continue working in order to have money for retirement since the government’s pension plans are not enough to support them during retirement. However, if aging employees are allowed to work as long as they want, adolescents will face a series of unemployment. A fixed mandatory age will provide vacant job positions, allowing young workers to fill in available positions as older works retire. After all, younger workers are much more productive than aged workers. Newer employees will be able to contribute more ideas to a company and inject new life and passion into the workforce. Older workers with decades of experience will demand for far higher salaries. This will ultimately decrease a younger workers salary resulting in an increase in the labor market because companies will have to release some of the young workers or reduce their salary in order to pay older workers without having their company lose profits.

A law that enforces a worker to leave the workforce will protect these workers from their jobs that are physically and mentally demanding. Young adults should not have to deal with useless knowledge as our everyday lives evolve. People that are still working over the age of 65 will create unequal opportunities for young workers, forcing them to remain unemployed while those employees are allowed to continue working, earning high salaries, allowing young workers to suffer in-debt when they could be making a huge impact on society. Retirement should be compulsory at the age of 65, a world with young employees running the workforce will create opportunities for many more generations to come.

Difference between Retirement and Pension

In this paper I am going to answer the following question: “What is the difference between pension and retirement?”. But first I have to start with definitions.

Retirement is someone’s withdrawal from active service. In most countries, a worker is said to have retired from service when they have attained a mandatory age or served for a period time in an organization. This age varies from country to country. In the United States, for instance, this age is 62-67, depending on the person’s date of birth. Other countries include: Ukraine – 57-60, Canada/Australia/UK – 65, Italy – 67, and India – 55-60. However, this should not be confused with resignation as workers are made to undergo the compulsory withdrawal from service. Also, when a worker is retired from active service, say in the military, they always receive a particular amount of money for his/her contribution to the organization. The payment could made in two ways: gratuity and pension. However, that is not the case with resignation. When you resign from your job, you rarely get financial compensation. Most times, people are forced to resign from active service for one reason or another other than ages. At some other time, the management may ask a member of the board resign to avoid denting his/her reputation because it is better than being sacked (fired) from work. So, we can see the definition of retirement as the withdrawal from active service as certain conditions have been satisfied not for the wrong reasons. When someone, usually a high-level executive, is forced to set aside for the wrong reason, it is called resignation.

On the other hand, pension is the compensation (usually in form of payment) that a worker receives from the management of his/her organization for attaining a particular age or years of service. In most organizations, including government establishments, people (called retirees) receive an amount of money in appreciation for their contributions to the organization. Apart from organizational setting, pension is also used to designate payment made to a widow or disabled people. Such payments are always made by the government, philanthropist, or community. Thus, the definition of pension is straightforward. s

While pension is a payment made to a widow, retiree or disabled person, retirement is a stage in life when someone has stopped working with an organization. In general, pension is money (compensation), while for retirement is stage of career. Age for both depends on country and organization. And finally, what happens afterwards? Showing appreciation and having a well-deserved rest.

Summarizing, now we have an idea of what the difference between pension and retirement.

What Does Retirement Mean Today?

We are living in an age, where many people not only have a higher life expectancy, the majority also lives healthier, stays healthier, appears to stay young longer and therefore many people want to stay busy, maybe even then when they could retire. Those factors would suggest, that retirement is a broad term, leaving quite some room for the individual to arrive with decisions which suit their individual lifestyle. What I have observed though within the younger generation that for some people the race for the right retirement seems to start as soon as they leave school or the university. Personally, I find this trend a little sad because there is so much more to life than just retiring in style.

The flipside of the coin is, that there are also those people for whom retirement does not sink in as a concept. Those are those people, who do not even think of stop working, love what they are doing, when they are doing it and for how long.

Between those two extremes of possible retirees almost any other option of retirement is possible. However, even if you think of working all your life, you might want to consider a retirement plan. The trick with life is, it might not always go the way you want to. Unexpected incidents are always possible. In such cases it is always reassuring, if you can fall back on a comfortable financial cushion. You might not be able to work anymore, but your financial situation lets you still do the things you love!

Just recently I read an article, written by a German psychologist, who was saying, that it is not only work which can make us sick, sudden retirement can make us sick as well. What he was pointing at, was that many people see retirement as the promised land. However, when they arrive there, the icing was off the cake. It is not retirement itself, which can make people sick, but having nothing to do from one day to another. Particularly, if you were busy all your live.

I would suggest that retirement and retirement planning is much more than having enough money when you get to this age. For the financial planning of your retirement, you can get help from a financial planner. He will ask you several questions about your income and lifestyle before any planning begins.

As for what to do, when you stop working you can do much to help yourself. Think of all the things you wanted to do throughout your life but told yourself, that can wait for later. Retirement kind of is ‘the later’ you were waiting for. Now is the time to do that bring fun and excitement to your life.

Another good idea would be to phase into retirement. With other words don’t stop working altogether just because a certain date has arrived. Make the fulltime job part time job and keep cutting back on work until you are totally comfortable enjoying all the time you’ve got for your dreams now!

Retirement Essay

Retirement is something that is frequently postponed and worried about later, especially for people who are younger. For young adults, retirement feels like it’s still so far away, so it doesn’t feel necessary to start planning so early because it barely feels real at all. Younger folks occasionally believe that they have much more time to worry about their retirement later on, or they believe that everything will fall into place and sort itself out in the end. Usually, people have imagined how they want their retirement to be, but most people fail to realize that none of that would be promising if they don’t start planning since that is what will determine the factor of their satisfaction with their retirement lifestyle. Planning is crucial as it helps detects an individual their source of income and expenses. From there, they are then able to establish a budget for their retirement based on their personal circumstances.

I never thought much about my retirement. I actually never thought about it at all, until I enrolled in this course and read Falling Short. I was then able to apply the information to my own personal life and pick out topics that I believe are most important and crucial for one to have a satisfactory retirement. A content and satisfying retirement may mean many different things to people when asked. However, just like other individuals, I want to have security, flexibility, and relaxation. I want to have freedom from financial worries while I am in retirement, flexibility to do what I want and lastly, I would like to be able to spend time with my family to relax, and to be able to travel when I desire to. The steps that I should take to prepare myself for what I want out of retirement would be to 1. To start saving, saving is a rewarding habit that will help me reach for my retirement goals. 2. I should also know my retirement needs as retirement can be expensive, so it’s important to get an estimate of approximately how much is needed so that I can take charge of my financial future. 3. Contribute to my employer’s retirement savings plan such as 401(k). It is an essential key to a secure retirement I believe. Over time, compound interest and tax deferrals will add up and make a big difference in the amount that I can accumulate. 4. Learn about the employer’s pension plan. It’s important to check to see what needs to be done to qualify and be covered by the plan and also to understand how it works. 5. Consider basic investment principles, saving is important but how one saves is just as important. The type of investment I choose will play a major role in how much I’ll have saved at retirement. 6. Do not withdraw from retirement savings early, not only will principal and interest be lost, but so will tax benefits and there will be penalties if the money is withdrawn early. 7. Deposit money into an Individual Retirement Account, IRAs can offer a stress-free way to save, they’re able to set it up to where a certain amount is automatically taken from either a checking or savings account, and that amount is then deposited in the IRA. 9. Find out Social Security Benefits. Social security benefits can help make retirement a bit more comfortable, especially for people who are lacking in savings. Social Security provides the majority of the income for the elders, so it’s important to find out about my benefits before I retire. 10. Do not retire early as it can reduce social security benefits. 11. Use home equity.

The steps that I can take individually are quite similar to the steps that I need to take in order to be prepared. However, due to my personal circumstances at the moment, I’m unable to achieve all of them since I don’t even have a job at all, but I think that there are a few steps that I can take individually now. I’m a stay-at-home mom to two little girls who are only 1 and 2. My husband works full time, and when he’s not at work he’s watching the girls for me to go to class or just to give me some time to focus and worry about my school work. I wouldn’t exactly say that we are living our best life, sometimes we don’t have much left after making sure all ends are met. However, I believe that it’s better to start planning early rather than not planning at all. As mentioned before, one thing I could do that would make a big difference is to just save. I need to make saving for retirement a priority. No matter how much it is that I’m able to put in, something is better than nothing at all. I am also trying to increase my earnings potential. I believe that one of my most valuable assets is my ability to make money. I’m currently attending college not because I have to but because I want to get an education, hoping that it’ll somewhat help increase my earning potential. I think that one of the most valuable assets is the ability to earn money. Hoping that my education/degree will be able to enhance my earning capabilities so that I make more to be able to save more. Another one that I’m determined to do is not retire early. Honestly, I’ve always wanted to retire early until I learn how much money an individual miss out on by retiring early. A few more years in the labor force can make a bigger difference than one can imagine. I’m currently not working so I’m unable to contribute to 401(k) but after being educated and informed on what it is, I told myself that once I graduate and get a job. Another step that I am taking that will also benefit me later on in my retirement years is currently working to pay off my debt, such as my student loans and also my home. The steps that I’m currently able to do now won’t get me where I want to be later on during retirement, but it’s a start to get me where I want to be.

There are a few changes that need to happen systematically to aid in retirement efforts on a larger scale according to the information given in Falling Short. Those changes would be to improve encouragement to work longer, increase social security’s earliest eligibility age, maintain social security, consider investing part of trust funds in equities, improve how the 401(K) system works, expand coverage, and educate investors and help them invest wisely. It’s clear that often individuals are not able to overcome the retirement income challenge on their own, and as a nation, it’s important to step in and take action. A few examples of the step that are needed to be taken across the bigger picture is to continue to build on the system that we already have in place, but make some changes where improvements are needed. First, make sure that the retirement income system is well organized, and make sure that motives and products will encourage people to make good choices. People need to be educated so that they’re able to make the right choices. The second would be to improve encouragement to work longer, more working years would enable us to get more out of Social Security Benefits. Monthly benefits are increased by about 7 to 8 percent for each year that we delay claiming Social Security benefits. Not only will we receive more benefits, but those additional years of work will also increase 401(k) balances. Third, increase social security’s earliest eligibility age. Retiring at 62 is undesirable financially for people who can work longer, but because social security hints that people can receive their benefits at age 62, people tend to believe then that 62 is an appropriate retirement age especially because it is the earliest eligibility age for benefits.

When it all comes down to it, nearly everyone needs to save more money to be able to prepare themselves for retirement but it’s also just as important for the nation to encourage individuals to not only save but to also educate and make sure that individuals are aware that 70 is the age at which they will receive the maximum Social Security benefits and a significant amount will be reduced is they decide to retire early. Most individuals can only save successfully when there is an organized saving mechanism involved, it’s important to improve and make the 401(k) system work better by expanding coverage and making it mandatory that employers adopt automatic provisions.