Debate Retirement Age

Topics: Retirement, Pension, Gerontology Pages: 2 (314 words) Published: January 27, 2015
Is it necessary to reform our retirement system ?
(Do we have to raise the retirement age ?)

Better life conditions  we live longer
Belgium : in order to claim an old age pension  must have reached a certain age (65) 21st century :
Our country, as a developed country, is suffering from the so called « aging- population » Increase of the life-expectancy

PRO

1.Double-effect on funding :
* people will contribute longer (2y) to the pension fund  pension fund will increase  they help to pay for the people already in retirement * while they work, they don’t receive any money from the fund => these 2 effects combined (helping (higher contribution) and not receiving (less costs) ) result in a 4-year effect on the retirement funding

2.We live longer :
1940 : life expectancy was only 63 ( in average people died before retirement) Now : life expectancy is 78
 If the retirement age doesn’t get raised, the economic efficiency of our country will decrease, because the government funds will go to pensions and not to research, innovation, education, …

3. Physically, people CAN work longer :
* better eating and exercise habits
* heavy-industry (mines) replaced by a service economy with less physical activity  people stay longer in good health

CON

1.Already a lot of unemployment (55-65)
Increase  move the need for contribution from pension to unemployment
James Galbraith, economist at the University of Texas : “Extending the retirement age
just means a longer job search, a futile waste of time and effort.”

2.It will hurt low-income workers  haven’t got the chance to build up their capital
people with a good income have had the chance and the money

3.some people say the fast-moving 21st century needs much more young workers with the latest job skills to be able to use new technologies
4.2 possibilities of reforms of the retirement age :
* fixed duration (45years)...
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