- The conventional employer-employee relationship in the public and private sectors has one thing in common in the Indian context. What is it? The retirement age prescribed as per the policies framed from time to time often carries a larger meaning not only for the individuals representing any organization but also for the overall development of the country as well. A few decades ago, the right age for retirement for the Indian employees representing both the private and public sectors was from 58 to 60 years. Even now, a few of the organizations stick with this retirement policy ostensibly to accommodate the young demography to supplement the growth prospects. However, certain defining factors should be comprehended whether such a policy serves us right.
PC: Akashvani & Doordarshan
- Most importantly, advancements in medicine have had an overbearing influence on largely enhancing our life expectancy. What used to be considered old for those in the age bracket of 55-60 years is now considered to be at the peak of their prowess, delivering the goods on expected lines. This being the case, the retirement age in vogue should not only be revisited but also altered in commensurate with the present-day life expectancy levels. As such, flexibility in retirement age must be considered as the way forward in India as well as abroad. Many organizations are changing their retirement policies with this reality in mind to ensure trained and experienced manpower is available to guide the younger lot joining the forces.
PC: Travel News
- As reported recently, Air India pilots will retire at 65, bringing parity between the two merged entities – Tatas’ Vistara, and GOI’s Air India, which the Tatas bought. But it’s not parity alone. There’s also a shortage of commercial pilots. So, it’s a timely and rational decision. Globally, the world of work is going through a pivotal moment as longevity, declining fertility, and manpower shortage are coming together to impact workforce composition and pension systems. The set of reasons driving the leaving-work conversation may be different, but the answer, in India as well, lies in raising the age, given capacity and ability of healthy older workers, and the necessity of easing pension burden. Over half the developed nations are raising their retirement age.
PC: Times Bull
- The average age within OECD countries will soon be 66. Germany last September incentivized later retirement to balance the worker shortage and pension burden. Spain incentivizes postponing retirement – putting it off by a year from the legal age, increases pension by 4%. Incentives increase with each year of postponement, with exemptions for those with more than 38 years and 6 months of work life. In Japan and Singapore, re-employment post-retirement, hours, and pay are negotiated between employees and employers. Here, it has long been argued, wrongly, that pushing back retirement chokes career pathways for a large population of younger cohorts. The way forward is to retain flexibility in retirement age to utilize the experienced workforce.
