Forced Retirement Monetary Considerations for the Retirees

Forced Retirement Monetary Considerations for the Retirees Psychological Implications Discrimination Costs to Society Forcing individuals to arbitrarily retire once they reach a certain age, no matter what that age might be, is not only counterproductive in its contribution to society, but it also serves as a form of discrimination against a particular segment of the population. This argumentative essay will provide clear and unfettered evidence that this policy is both ineffective and unjust. It adversely affects the individuals being forced into retirement both monetarily as well as psychologically.

It indirectly affects society as a whole by limiting great segments of the population from employment; many who are often extremely well qualified and experienced. Therefore under no circumstance is this policy a plausible solution. Monetary Considerations for the Retirees Retirees are detrimentally afflicted by mandatory retirement financially primarily for two reasons. First, they lose their income potential. This may occur even if the individual is fully fit to continue working in their job.

It may even be the case that the potential retiree is actually more capable than the younger worker that might replace them. Thus this in turn could also unduly prohibit the employer from achieving the greatest possible financial gain from their employees. Experienced professionals also add a certain dynamic to the workforce that serves to counteract some of the follies of youth (Clover, 2011). With the introduction of advanced methods of health care, many elderly workers are also physically fit enough to work in a variety of roles.

Another aspect to the financial considerations to the potential retirees is there investment in a retirement fund (when applicable). The retirees that have invested in any kind of savings can greatly expand those funds by delaying retirement since the funds grow in an exponential manner (Maranjian, 2007). Therefore, even one year of lost capital gains for a retiree could greatly reduce the total of the amount of saved funds for retirement.

Since many potential retirees have not achieved a retirement fund that is adequate to support them comfortably by the age of 65, then this could cause some retirees unnecessary pain. An illustration is presented below that represents how a retirement fund grows exponentially: Table 1 - Sample Exponential Growth Psychological Implications Not only must retirees who are forced into retirement suffer financial loss, but many of them also suffer psychologically as well.

Several studies have been conducted to determine the impacts that forced retirement may have upon the metal well-being of elderly workers. Many elderly workers suffer a significant loss of self-efficacy or loss of worth when made to retire (Charles, 1999). Other studies indicate that some aging members of society actually experience an increased level of the perception of the sense of control that they may have in their environment (Rodin, 1986). Consequently, the impacts of forced retirement may be greater among this demographic than any other population segment.

Thus it would be difficult to relate to the sense of loss that a forced retiree may feel until you experience that situation yourself. The psychological torment to forced retirees may be much greater than generally perceived. Discrimination Excluding anyone from the workforce based on any criteria is a form of discrimination. At some points in history, many people were denied entry to various societal positions based on race or sex. At the time of these occurrences such practices were considered commonplace.

It is only in retrospect that many individuals find such practices cruel and unjust. Denying people the right to work based on their age is no different than other forms of discrimination that have been practiced over the years. Positions of employment should be filled by the most qualified individuals without regard to any demographic category that they may fall into. Otherwise, society returns to similar states of being that are generally considered unfair by most reasonable people.

Costs to Society Society does not benefit whatsoever from denying people entry to the workforce. For an economy to work at its optimal level, then it should employ as many people as it possibly can. For the economy to benefit, it should focus on creating position for all people who wish to work. Only when full employment is approached can the nation reach its full productive capacity. An example of this could be the United States when it was in its prime. The U.S.

had at one time a very liberal immigration policy. Millions of workers from all over the world traveled to the U.S. strictly for the job opportunities. As a result of putting the immigrants to work, the U.S. economy achieved some of the greatest growth rates in terms of the economy in history. Thus, if one cares about improving the prosperity of a peoples, then it should focus its attention on creating jobs rather than denying people to the workplace.

Conclusion This argument has included the hidden costs of forced retirement from various different angles. One set of costs are incurred by the retirees themselves.