Extending retirement age seems plausible, because (1) ensuring old aged worker still can contribute to the economy, (2) aged workers continue to earn an income.
If I were to approach the problem from an investor’s point of view, I do feel that we should educate public Financial Literacy early instead of legislating the retirement age.
Valuable worker need no legislation for being rehired
A very experienced, skilled worker is a treasure to a society; companies would love to hire them if they can bring in more value to the organisation. A company would prefer skilled workers not having any retirement age limit instead. Market force will determine the employability and wage of an individual.
Live to work? No!
Living in Singapore is stressful enough. Working restlessly during productive years and at the same time promoting working the entire life seems inhumane, in my opinion. As a retiree, I would wish to do things that I enjoy. Enjoying the wealth that I have accumulated during my productive years. Therefore, I strongly believe delaying gratification while young instead of delaying retirement age is the better way to approach the problems. Delaying retirement age is giving young people false sense now about the financial/job security during the golden years.
Solution
Besides continual education to increase individuals’ skills, knowledge, productivity in their own profession, one of the very key skill that, I think, is equally important but often being overlooked – ‘Skills in Investing’
Empowering people with Financial Literacy; cultivating the habit of saving and building up the skills in investing, so that they can become wealthier during their golden years. Often I noticed that many people can actually be much wealthier but because they were not investing or they were investing wrongly during their productive year; it is a pity they ended up having much lesser in their retirement saving. If we compare the wealth gap between the one investing and the one not investing, the wealthier one can potentially have 5.7 times more than the one saving without investing (assumption – 40 years of investing, return of 0% p.a.vs 8% p.a)
Conclusion
Instead of worrying whether we can be hired when we are old or not, we should start building our war chest. In order to really enjoy during our golden years, without the need to work to live, we must start saving and investing now before it is too late.
Keen to find out how you can include Stock into your Investment Portfolio? Feel me to drop me an email [email protected] or call me at +65-91880356 for an non-obligatory discussion now.
Reference http://www.todayonline.com/singapore/re-employment-age-be-raised-67-0
