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Raising the Retirement Age in Aging Populations


Discuss whether the government of a country with an ageing population should raise the retirement age.


Public Finance and Government Intervention

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I. 🍃Introduction
- Brief explanation of the topic
- Importance of the retirement age

II. Advantages of increasing the retirement age
- Increase in the size of the labour force
- Decrease in the dependency ratio
- Increase in output/incomes
- Increase in tax revenue
- More experienced workers
- Higher productivity
- Decrease in the cost of pensions
- More affordable pensions for the government/firms
- Enable workers to save for their retirement
- Increase in physical and mental health of the elderly
- Avoidance of raising tax rates
- Opportunity cost of pension provision

III. Disadvantages of increasing the retirement age
- Inequitable if life expectancy is low
- Lower living standards
- Older people blocking jobs for younger people
- Older workers may be less productive than younger workers
- Physically demanding work may affect older workers' health

IV. Alternative measures
- Encouraging immigration of people of working age
- Promoting private pensions

V. 👉Conclusion
- Summary of the advantages and disadvantages of increasing the retirement age
- Final thoughts on the topic

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