Wednesday, June 16, 2010

Retirement: Retire at 55 | The Economist

Retirement: Retire at 55 | The Economist

This is an interesting article on major economic implications of retiring earlier or later. While Germans and Greeks are huffing and puffing at each other, it is important to understand that there is no perfect solution. What is true is true - very soon the governments will not be able to meet their obligations in terms of providing retirement benefits in most countries, just because people insist on living longer and for some reason they don't want to work straight into their grave, but rather want a lion's share of public spending, particularly around medical services. Yet, the opposite is true as well: if you keep them in the workplace, you overpay for not-as-productive-as-a-40-year-old employee, and unless you manage to keep all that graying army in the private sector and thus shift the monetary burden onto the large corporates, there is another potential problem looming.

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