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...

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…