Question

Answer the questions after studying table carefully:

Country	Retirement Age reforms being implemented or under consideration (in years)
Germany	Retirement age to increase gradually to 66 by 2023 and to 67 by 2029
United States of America	Retirement age to rise gradually to reach 67 for those born in 1960 or later
United Kingdom	Retirement age to increase for both men and women to 66 by October 2020 and further to 67 between 2026–28
Australia	Retirement age scheduled to increase gradually to 67 by 2023
China	By 2045, to increase retirement age for both men and women to 65
Japan	Under consideration to raise the retirement age to 70
India	On an average, 60 years. May vary from 55 years to 65 years according to services

1. What does the table show?
2. Classify these countries into developed and developing.
3. What could be the reasons behind increasing the retirement age in these countries?
4. What will be the impact of increase in the retirement age on the economy of the respective countries?
5. Why is China considering increasing the age later in 2045?
6. Considering these examples from developed countries, will it be good for India to increase its retirement age? Express your views about this.
7. Write a concluding statement about the relationship between age structure, life expectancy and economy of a country.

Answer 1

1. The table shows the retirement age and proposed retirement age reforms in different countries.
2. Developed countries: Germany, United States of America, United Kingdom, Australia and Japan.
   Developing countries: China and India.
3. The main reasons are:
   • Increase in life expectancy
   • Growth of elderly population
   • Shortage of working-age population in some countries
   • Need to reduce the financial burden of pensions and social security
   • Need to retain experienced workers for a longer period
4. An increase in retirement age can increase the working population, reduce dependency on pensions and help maintain production and economic growth. However, it may also reduce job opportunities for younger people in some sectors.
5. China is expected to face a larger ageing population in the future. Therefore, increasing the retirement age later can help maintain the labour force and reduce the burden of supporting the elderly population.
6. India should increase the retirement age only after considering its large young population and employment situation. A higher retirement age may retain experienced workers, but it may also reduce job opportunities for young people. Therefore, any increase should be gradual and based on the needs of different sectors.
7. The age structure, life expectancy and economy of a country are closely related. A country with a larger working-age population can achieve faster economic growth, while higher life expectancy increases the proportion of elderly people and may increase expenditure on healthcare, pensions and social security.