Start planning your retirement NOW
Employment prospects for older people are getting worse as the demands on pension provisions increase. If you aren’t planning, plan. And if you are planning, re-evaluate.
September 20, 2010 2:43 by Samuel Potter
The chances are you have already given some thought towards your future; specifically, your pension and retirement. But have you given it enough? Recent news reports and developments in the labor market are making it clear that the rules of the game are changing, and not in a good way.
First, let’s look at some news. Retirement laws and guidelines in developed economies are being changed. Most prominently this is happening in France, where unions have staged national strikes in protest at the government’s plans to raise the national retirement age from a generous 60 years old to a similarly respectable 62 years old. Meanwhile in the UK, similar ideas are in the pipeline, with the fixed retirement set to increase gradually over the coming decade. The government also plans to make it illegal to retire someone over a certain age, meaning workers can stay on for longer if they choose.
The reason for these changes, taking place in countries across the world, is the financial burden of a retired generation. State provisions for both healthcare and pensions are generally underfunded, and the majority of people do not have adequate personal provisions. In Australia, for example, ABC news reports that the cost of aged care is set to double in the coming 20 years. Where does this burden then fall? On the working population, of course. So if governments can increase the working population, and decrease the number of people in retirement, it can be a big help – hence the retirement age-hike.
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