Ghana’s retirement and old age income support policies are finally receiving the recognition they deserve. Although these programs have historically been restricted in scope and coverage, policymakers have increasingly recognised their significance in recent years.
The mandatory retirement age was based on Ghana’s low life expectancy, health conditions, educational levels, and demographic structure. Nevertheless, the retirement age has been reevaluated in light of the substantial changes in these factors.
Now, Ghanaians are increasingly focused on their retirement concerns. Some believe the current retirement age of 60 is too early and that the government should raise it. The general public has responded in a variety of ways to this request.
Many people are unsure about this idea, arguing that raising the retirement age could lead to higher youth unemployment rates, especially given the country’s current high unemployment levels. Advocates of early retirement in Ghana argue that it is imperative to establish opportunities for young individuals to enter the civil service and realise their full potential in public service.
According to them, this method offers numerous advantages, as young individuals are required to work to support their families, provide shelter and clothing, and contribute to Ghana’s growth.
Nevertheless, it is crucial to observe that the objective of this transformation is not to replace the youth in the workforce but rather to establish a more inclusive and diverse work environment. The question I want to ask readers is, “What advantages exist for the nation and those compelled to retire against their will?”
Another argument against raising the retirement age is that it will excessively burden individuals’ physical and mental well-being. It will also have a detrimental effect on specific demographics that have lesser life expectancies than others. It will disrupt the lives of individuals involved in physically demanding occupations, such as manual labour. These concerns must be addressed in any discussion regarding expanding the retirement age.
Some people believe that increasing the retirement age will benefit the nation in several ways. Many believe that raising the retirement age would help ensure the long-term sustainability of the Social Security System. As people live longer and rely on benefits for extended periods, the financial strain on the government increases. By allowing older individuals to continue working, we can alleviate some of this pressure.
It is a well-established fact that as a country’s population ages, the number of employed individuals tends to decline, which reduces the working-age population. Therefore, increasing the retirement age could boost employment numbers and promote economic growth.
Research has shown that raising the retirement age has financial advantages, particularly as life expectancy increases. Belgium, France, and Italy have higher unemployment rates than the United States, Canada, Japan, and the United Kingdom, which have retirement ages later than 60. This modification has the potential to result in a more robust economy and a greater number of employment opportunities.
Moreover, promoting healthy ageing is often linked to raising the retirement age. Studies have indicated that individuals who continue to work past the traditional retirement age tend to be happier and maintain better health compared to those who retire early. These workers are less prone to chronic illnesses and remain more cognitively active, thanks to the daily challenges that come with their jobs. When the government decides to raise the retirement age, it can enhance the financial security of the population.
Extending the working years can provide many individuals with greater economic stability and independence as they age, especially since retirement can pose financial difficulties.
Individuals are also advocating extending the retirement age beyond 60 because it will reduce age-based discrimination. The current retirement age system leads to age discrimination, as senior workers must retire despite their ongoing capacity to work. Employers frequently overlook seniors when they apply for specific positions.
The proposition to extend the retirement age may be criticized by specific individuals, particularly in light of the high unemployment rates among the youth. It is imperative to acknowledge these apprehensions and explaining how the proposal can be advantageous to them. For example, the proposal has the potential to generate additional employment opportunities for young people by enabling senior workers to continue their contributions to the workforce.
It is essential to understand that political officeholders and justices in the country’s higher courts do not have a designated retirement age. Simply enforcing a retirement age at 60 cannot effectively tackle the unemployment crisis, particularly since the justices in these courts have certain protections. So, how does this approach address the challenges within the judicial system, where there is a significant backlog of cases and a shortage of justices able to render timely decisions?
Ghana’s and other developing countries’ retirement policies have resulted in the dismissal of non-disabled men and women from the civil service. These individuals can continue contributing to the nation’s development with their acquired mental acuity, experience, and loyalty.
Countries that Ghana aspires to emulate have either increased their retirement age or are in the process of doing so. In contrast, Ghana’s decision to maintain the retirement age at 60 is inconsistent with the rapidly changing global landscape and hinders progress.
In concluding this article, I would like to emphasise to Ghanaians that the retirement ages in numerous advanced nations are undergoing significant changes, with many of these countries moving towards a retirement age in the late 60s.
A brief summary of the retirement ages in select advanced countries I will entreat Ghanaians to look at is provided as follows:
Australia: The current retirement age is 67, but it is scheduled to rise to 70 by 2035. United Kingdom: The retirement age is currently 66 and is expected to increase to 67 between 2026 and 2028. Canada: The standard retirement age is 65; however, individuals can begin receiving benefits from the Canada Pension Plan as early as 60. Japan: The retirement age is 65, with a planned increase to 67 in 2027.
Germany: The retirement age is presently 65, but it will rise to 67 by 2029. France: The retirement age is 62, with a scheduled increase to 64 in 2030. Italy: The retirement age is currently 67, but there are various exceptions and options for early retirement. The authorities in Ghana should consider these international examples.
Individuals advocating for a retirement age of sixty ought to consider that they too will eventually reach that stage in life. It is important to recognize that others may perceive them in a similar light, as illustrated by the adage, “the cooking pot for the Chameleon is the same for the Lizard.”
