Discussion Essay on Retirement Age PDF

Name: Dar Vince anak Wahap Matrix no: 103785 DISCUSSCION ESSAY Retirement age is defined as the age at which an individual is eligible to stop working permanently and begin receiving a retirement pension. In many countries, retirement age ranges between 60 and 67 year...

Name: Dar Vince anak Wahap Matrix no: 103785 DISCUSSCION ESSAY Retirement age is defined as the age at which an individual is eligible to stop working permanently and begin receiving a retirement pension. In many countries, retirement age ranges between 60 and 67 years, though some allow early or delayed retirement options. While extending the retirement age offers potential benefits, such as improved cognitive health and reduced dementia risk, it also presents challenges related to youth employment and government finances. This essay will discuss both the pros and cons of a late retirement age, ultimately suggesting a balanced perspective on the matter. Research suggests a strong correlation between later retirement and reduced dementia risk (Sundström, Rönnlund, & Josefsson, 2020). Studies indicate that continued mental and social stimulation through work helps maintain cognitive function, supporting the "use it or lose it" principle. Delaying retirement allows individuals to leverage this cognitive reserve, potentially delaying or even preventing the onset of dementia. This benefit underscores the importance of considering the long-term health implications of retirement policies. However, extending the retirement age also presents significant economic challenges. For example, in Malaysia, raising the retirement age could increase youth unemployment rates unless the economy experiences substantial development. Absorbing a larger workforce requires significant economic development, a challenge that might be hard to achieve. Furthermore, increased pension costs associated with a longer retirement period may place a strain on government budgets, potentially diverting resources from other essential public services. These economic realities must be carefully emphasized against the potential health benefits. From an economic perspective, there are mixed implications of a late retirement age. On the positive side, it reduces the burden on pension systems by decreasing the number of years individuals rely on public funds. However, in Malaysia, increasing the retirement age might not yield benefits as pensions have already gotten increases significantly over time (Excerpt 2). Moreover, late retirement could potentially take away youth employment opportunities, as younger workers may face difficulties entering the job market or advancing in their careers. This generational shift could negatively impact economic growth, as younger workers are crucial in innovation and workforce renewal. In conclusion, determining the ideal retirement age requires a detailed and balanced approach that considers both individual well-being and broader societal factors. While delaying retirement may offer cognitive advantages and potentially increase the overall productivity of the workforce, the potential for increased youth unemployment and the strain on government finances cannot be ignored. A solid strategy might involve targeted interventions to support older workers, such as retraining programs and flexible work arrangements, alongside.