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What raising the retirement age means for the economy
Jan 16, 2025
Discover the intriguing effects of raising the retirement age on the economy. Explore how a major tech firm’s shift to 60 years can help retain seasoned talent while navigating workforce dynamics. Delve into India's demographic changes, where longer life expectancies meet lower fertility rates. Unpack the economic pros of keeping experienced workers and the challenges this poses for younger job seekers. It's a thought-provoking look at the balance of wisdom and opportunity in the labor market!
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Quick takeaways
- Raising the retirement age can help counteract workforce shrinkage by retaining experienced employees, boosting economic contributions and tax revenue.
- While it may create concerns for youth employment, a growing job market can support both older and younger workers effectively.
Deep dives
The Impact of Raising the Retirement Age
Raising the retirement age can significantly influence the economy by retaining experienced workers longer, which may counteract the effects of a shrinking workforce due to declining birth rates. For example, some tech companies in India, like Cognizant, are already increasing the retirement age to 60 to mitigate high attrition rates and maintain a seasoned personnel base. This approach not only helps bridge talent gaps but also encourages older employees to contribute to the economy longer, delaying pension payouts and increasing tax revenue through continued employment. As India’s population dynamics shift, moving to a higher retirement age could help harness the potential benefits of an aging workforce.
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