Youth Debate: Extending the retirement age

The debate on extending the retirement age has come back to the forefront. To cope with the ageing population crisis, the government has announced that the basic retirement pension will only be payable as from 65 in line with the extension of the retirement age that has been introduced in Budget Speech 2006-2007 following reports by the Pay Research Bureau, the World Bank and International Monetary Fund. However, the concept of this extension has stirred controversies.

Glorine Maloupe: “This offers new opportunities” 

It is true that we have an ongoing ageing population and the number is expected to double by 2030, says Glorine. “The government is leaving no stone unturned in increasing the standard of living of our elders. A better example is the retirement age scheme which has been reviewed to 65 years since 2008. This decision has obviously its merits and demerits. Mauritius cares more about its elders compared to other countries. The primary purpose behind the extension of retirement age has been sought in order to avoid any impending financial disaster that the country might face in the future.”

She claims that one of the advantages of retirement age at 65 years is that it offers opportunities to our elders to continue contributing towards the economic development of our country. “In certain situations, most of our elders have financial constraints (they have unemployed dependants to feed), some of them are not mentally prepared to retire, thus they are capable to work over the age of 60. Furthermore, they even feel stress-free, as they can be active and productive instead of sitting idle at home. But retirement age to 65 years is still not solving the current problem of youth unemployment. In fact, we have 75,000 graduates. This number will go increasing each year. This retirement scheme has perhaps satisfied our elders but at the expense of the youth.”

She further adds: “Most of our youth had to wait approximately five years to be employed and that for many reasons. One reason being no working experience, thus employers tend to prefer retaining their older staffs because of their experience. Retirement age at 65 has, in a certain way, contributed to increased unemployment. Jobs are being created everyday but our youngsters have less opportunities of being employed. Bringing back the retirement age to 60 years might be a better solution to bridge unemployment but not totally.”

For her, the efficient solution to curtail this phenomenon will be to give options for elders to choose their retirement age to either 60 or 65. “Some of our elderly tend to lose their productivity and opt to retire at 60. The government could put a stable balance between the retirement age of our elders and youth employment for the betterment of our country. Since we belong to a country deprived of natural resources like hydrocarbons, but rich in human resources, our government should further seek to develop human capital.”

Deepak Maunthrooa: “The retirement age should be flexible” 

Deepak Maunthrooa states that retirement is a period when you 'retire' from your profession so as to spend quality time with your family and/or indulge in activities you haven't been able to undertake during your working period. “The retirement age gives us an indication that the said period has come for those people who have worked or practised a specific profession during the past 30 years or so. In this day and age, when most countries are facing an ageing population crisis, it is no coincidence that our country is pondering on the retirement age. Retirement age at 65 is already a fact in Mauritius; the anomaly lies in the old-age pension being handed to those reaching the age of 60, with all the benefits the elderly benefit from.” 

He further adds that “the retirement age should be flexible: those wishing to take it at 60 should be allowed to do so. We must take into account that not every profession has the same specificities and as such the 'burn out' is not the same everywhere. This flexibility should definitely not entail the selective old age pension payment. Each employee has been working and contributing in this pension scheme as well as paying taxes, whether one was earning Rs10,000 or Rs 50,000. So, the pension should not target specific groups of persons. The onus of how to spend that sum lies upon the retired person: he/she has worked and contributed towards this during his/her entire working life.” 

For him, the best solution to retirement age is not to extend it but to render it more flexible. “A huge amount is required of course but this can be collected from taxes. A proper taxation system will definitely be sufficient to give our elders their dues for the efforts they have put in the development of our country. The concerned Minister needs to be properly and wisely advised for things to move in a fair and just way.”

Anishah Aujayeb-Gopal: “Retirement should be at 65”

Everything in life is a choice and this should be applied to the age of retirement as well, declares Anishah Aujayeb-Gopal. “Retirement should be at 65 for those who want to keep working and 60 for those who want a well-deserved rest. Extending the age of retirement to 65 is mostly due to major economic concerns. We are an ageing population – not just in Mauritius but around the world. With fewer families bearing children, this takes a toll on our economy for it is more and more difficult to find adequate replacement for retirees. Having people working beyond the age of 60 will allow a small but existing window to give time to coming generations to step into the working environment. As such postponing the age of retirement is for  economic survival.”

Our government should also cater for the relevant factor that life expectancy has increased because of healthier lifestyles, medical advancements and better management of the self, she states. “It is also a known fact that over half of global CEOs are older than 55 and that is considered as being at the peak of their careers. So what if they want to continue to work for another 10 years? Will they not be able to contribute more to the economy and their businesses through their experience and knowledge? It would be cruel to ask them to step down if they still have the drive, the motivation and the desire to go beyond the societal imposition of retirement age. We should not forget the economic ripple effect that is caused by having people retire. A retired individual becomes dependent on the economy for its pensions’ benefits. The higher the number of pensioners, the bigger the input required from taxpayers’ to contribute to their pension schemes. As such, shouldn’t the government be more open by having people work beyond the age of 60 rather than becoming dependent on taxpayers’ money?”

She further explains that “all in all, gone is the age when a government could discriminate on the basis of age. Everything is and will remain a choice – and this applies beautifully for the age of retirement. Working till the age of 65 has numerous advantages for both the person and the economy whilst stopping work at 60 is certainly appealing for others!” 

Washeefah Dinmahamed: “Retirement should be early”

Retirement age differs across the world, generally between 50/55 and 70. The age of retirement should be fixed, says Washeefah Dinmahamed. “The most appropriate age would be 60. Working entails a lot of responsibilities in office and sometimes outside, too, but most people prefer to devote time to their families and hobbies. Employees working at an advanced age are not as productive as earlier.  Younger people are likely going to be more productive. In fact, setting the retirement age higher will impact low-income workers. They are the ones who earn less, with little education, suffer from poor health or are in more physically demanding jobs. For this group, retirement should be early so that they can maintain their good health in old age.”

Retirement age around the world 

In Australia the retirement age is to be increased gradually to 67 years by July 2023. 

Canada: The standard age to begin receiving a CPP retirement pension is when one attains age 65 (the month following the 65th birthday). However, one may receive a reduced CPP retirement pension as early as the month following the 60th birthday. Alternatively, one may receive an increased pension after reaching age 65. Canada also has a pension supplement with different rules called Old Age Security (OAS).

China: The retirement age in China currently is 60 for men and 55 for female civil servants and 50 for female workers. In France the retirement age is to be increased gradually to 67 years by 2023. In Germany the retirement age is to be increased gradually and reach 67 years in 2029.

In Singapore, the Retirement Age Act (RAA) has been replaced by the Retirement and Re-employment Act (RRA) in 2012. Under the RRA, the statutory minimum retirement age is still 62, but employers are now required to offer re-employment to eligible employees who turn 62, up to the age of 65.