Tag Archives: retirement

Europe Plans To Raise Pension Age Retirement

A “crisis” has arisen over the issue as to when people should be allowed to retire and receive government payments during those post work years. French President Nicholas Sarkozy is proposing raising the retirement age from the current, 60, to something like 62 or 63 while Germany is considering a move from 65 to 67. Even in Greece, where it is possible to retire in the fifties and collect “old age” payments for twenty or thirty years, there is discussion of raising the female 60 to 65 and reach parity with males. OK, there are some ludicrous retirement schemes such as for French railroad workers who can retire at 50 with full benefits, but for the majority of people, retirement is not entry into a life of leisure. Sarkozy and others blame retirement at an “early age” as the cause of massive deficits. In America, retirement taxes only impact money received as pay for up to about $108,000. Why? Wouldn’t it it be fair and fiscally responsible to have the social security tax levied on ALL INCOME? This, in itself, would take care of Social Security deficits for years to come without necessitating any other changes.

The rich, in all societies, never pay the full tariff while the poor and middle class must comply with government regulations. Certainly, in the United States every dollar earned should be taxed at the same rate. Enough, with people retiring “too early.” Let’s make the upper middle class and the wealthy pay at the same rate as do the poor and middle class!!

Should Retirement Age Be Extended?

As the economic crisis deepens there is increasing talk about extending the age required for people to enter government retirement systems. Finland is currently debating raising the age to retire from 63 to 65. The ostensible reason advocated for such legislation is that people live longer than previously so it only stands to reason they should retire at an older age. However, the change has many implications. At a time when many corporations are laying off newly hired people, it results in the aging of their workforce. If those at the upper age end of a company delay retirement, it means younger people will have a more difficult time to move up in the company. An extension also fails to recognize that many people have spent their lives engaged in hard physical labor and retirement allows them some momentary physical rest at a time when their bodies are more prone to wear out.

Perhaps, it is time to recognize that retirement will be for those with greater wealth, a long time in which to live and without meaningful work or activities it will result in emotional issues. We need to rethink the entire process of retirement and describe in greater detail what being “retired” means in a post industrial society.