That's what one Chinese city is hoping. Shanghai has plans to elongate the retirement for men and women so that their city pension fund is not as strained. Working citizens get money to live off from their employers (rather than governmental programs) and they also continue contributing taxes to social services. This extended retirement could also benefit individuals, not just the pension fund. Many older adults enjoy their work and find it fulfilling. Often they are forced out of their job and into retirement (such as pilots with their required retirement age) when they are still capable of working and working well! These individuals would be able to complete fulfilling work while helping the city alleviate their pension fund. Businesses, however, do not want to extend the retirement age. Currently, they can retire men at age 60 and women at age 50 or 55 (depending on the type of work that they do) and re-recruit/re-hire them for a drastically smaller salary. Retired employees are able to receive monthly pensions, so the company that they retire from feels no guilt in paying them significantly less. Businesses are not the only ones that would be upset with this policy change. Recent college graduates looking to enter the job market would find less opportunities and more competition. This policy may benefit the older generations of Chinese but what will happen to the younger generations? Where will they get their work experience? Money to live off of? Will the economy begin to dip if the majority of employment is reserved for older adults?
Information received from:
http://en.cncaprc.gov.cn/en/iroot1007210001/4028e47d26c07bda0126f09b528e0023.html
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