Raising the Retirement Age for Government Benefits- myassignmenthelp

Question: Discuss about theRaising the Retirement Age for Government Benefits. Answer: Introduction Retirement or pension age is the age when an individual becomes eligible to take government benefits. The retirement age of an individual in Australia is 65 and half years. Some individuals who are not working can also be treated as retired as they can make use of their health benefits offered by government. According to the research it can be stated that retirement age in Australia will rise to 20 years in upcoming years. Retirement can be stated as a virtue when an employee leaves the organisation or they withdraw their designation from the organisation. Retirement Criteria In Australia having a fixed retirement age for every individual is considered as unlawful. According to Government of Australia retirement age is not fixed and differs from one person to another as the retirement age in defence force is 60, reservist have 65 as their retirement age, judges have their retirement age of 70. Thus people choose their age of retirement according to the age when they become eligible for pension. From July 2017 pension age is 65 and have the chances to rises till age 67 in July 2023 (De Gruyter, Ford Stavreski, 2016). There are many factors that affect the retirement decision like experience, education and social security of an individual. Sometimes greater wealth leads to have early retirement. Additionally once a person has taken permanent retirement they cannot come again in the working stage (Schofield, et. al, 2015). People who retire early have chances to become seriously ill that make average life expectancy for all retirees lower. There's another factor that affects the retirement age is distorts. Raising the retirement age Raising the retirement age is major challenge as it affects the economies of the country. Australia has lower birth rates which result in increased demand for helping ageing population (Wang, Koo O'Hare, 2016). It is important to improve retirement system in a country by offering benefits in retirement savings and increasing the retirement age so that individual becomes eligible for public pension. It has both positive and negative sides of rising the retirement age. The positive impact to raise the retirement age is that it helps the country to increase their productivity which in turn increases the tax revenues. The productivity means more revenue to the country which could be used for development of countries growth. It also helps in reducing the budget and no affecting the overall growth of the country (Stebbing Spies-Butcher, 2016). Increasing the retirement age can be beneficial for the company as an organisation will have more experienced employees which will helps in improving the decision making power in an organisation. They can easily manage the disastrous condition and take benefits of super saving account, government pension, investments and the source of casual income. It can be problematic to raise the retirement age as it is very difficult to manage the government debt and create budgeting issues (Vogel, Ludwig Brsch-Supan, 2017). According to the research it can be stated that number of job vacancy is fixed and is limited at point of time. If the retirement age would increase it will increase the ratio of unemployment as it would be hard for youngsters to find job. It is true that if youngsters work for the country it would be beneficial as they work with, more enthusiasm and are more productive. They even help in innovative new ideas for betterment. The productivity of a person usually decreases if he/she is more than 60 years (Lalive Staubli, 2014). So, there is no point to increase the retirement age as old age people usually suffer from health problems. Thus, instead of raising the retirement age government should establish special employment schemes. The knowledge gained in their experiences could be used to train the fresher so that they know how to tackle the situations. Retirement people have chances that they can do something else but if fresher do not get job they get depressed and demotivated. Impact of rising the retirement age Social security gets affected by rising the retirement age as it helps the fresher to learn from experience employees. Additionally retirement at early age may impact the economy of the nation as it may be a burden for government to provide retirement funds. It is very productive if considered the case of better results ad efficiency. This will help old people to stay busy and will increase their life span (Heybroek, Haynes Baxter, 2015). Otherwise the retired people can act as a burden on the nations economy. Raising retirement age will impose employees to have lack of motivation as they need help of government. Retirement age should be decided according to the capability of a person to work in an organisation as if a person gets retirement at the time when he is capable of performing well can be a loss to an organisation. Retirement age discriminates a person who is willing to work (Naumann, 2014). Increasing the retirement age can lead to greater comfort. Alternate approaches Rising retirement age is beneficial for government as well as individual in some cases. It helps the government to save money by making fewer payments to the retirees and helps to improve the working environment of an organisation as they train younger employees (Australiancentre, 2017) . In some cases it decreases the time for people to enjoy their pension age as they get retired late (Ielts, 2017). The alternative approaches used instead of rising the retirement age is non-legislative standards. Other alternative is to work as a social servant this would help in contributing to the economy of nation. Other than that government has initiated various programs to reboots the productivity of employees (Careeride, 2017). According to the research it can be stated that government should first increase the health levels of retired employees so that they quest for higher minimum state pensionable age. Retirement age- Benchmark Australian retirement age can be seen as a benchmark as the eligibility completely depends upon the target and the capability of an individual. The Age Pension and superannuation are closely linked to each other d should be considered in parallel when changes are made (Bloom, Canning Moore, 2014). Retirement age in Australia is decided by keeping track of health of an individual as health helps in deciding the retirement age of an individual. Two policies were designed which act as a bench mark and changed the entire decision making process (Zacher Griffin, 2015). It was mentioned in the policy that in January 2014 the age of pension were same for both male and female. But in 2016 the pension age has increased and raise to 67 years and it is estimated that it will increasing with every year (Zhu, 2016). Pension age impact the decision in making retirement plan as it is dependent on life expectancy and in some cases it is dependent on country's parliament. Recommendations It can be recommended that retirement age should not be kept fixed but should be dependent on the capability of a person. If a person has the potential to enhance the productivity of an organisation, retirement age should be increased otherwise vice versa. Conclusion It can be concluded for the discussion of essay that increasing the retirement age is not possible practically but it may be beneficial as it will adversely affect an organizations productivity. On the other hand rising the retirement age can increase unemployment for youngsters. In Australia there is no fixed retirement age it is decided on various factors. Thus it can be concluded that instead of increasing the retirement age, governments may design special schemes to maintain the employment ratio and increase the revenue. References Australiancentre.(2017).The Age of Retirement.Retrieved from https://australiancentre.com.au/wp-content/uploads/2016/09/The_Age_of_Retirement_Final.pdf. Bloom, D. E., Canning, D., Moore, M. (2014). Optimal retirement with increasing longevity.The Scandinavian journal of economics,116(3), 838-858. 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