Advancements in medicine and living standards have led to a significant increase in the global life expectancy. Consequently, a growing number of retirees are spending longer periods of time out of workforce. While this prolonged retirement puts a strain on government funds and causes rises in taxes for both individuals and the state, I believe these issues can be tackled by encouraging private wealth accumulation and offering part-time jobs.
First and foremost, people living longer is significant issue in contemporary world. This is because, when individuals live longer after their retirement age, government has to allocate a larger share of budget to the elderly and taxes as the result, it leads to government cannot invest other fields such as education, infrastructure or creating new projects. For instance, in Japan, almost half of the citizens aged over 60. The rate of workforce is lower consequently, Japan cannot spend much money for economics. Therefore, people living longer is for both disadvantage for individual’s education and government.
Although human longevity has serious drawbacks in present-day world, government can play significant role in this situation with movement. One of the crucial solutions is that the government should provide old people with flexible jobs and Individuals should build their own pension scheme starting from their youth. For example, if humans allocate money for their pension from early age, it imposes no financial strain on the government. In addition, when people provide their pension from early age, citizens do not have to pay a lot of taxes. Therefore, although there is high disadvantage for government and people, governments can address this issue through effective policies.
In conclusion, even though an aging population leads to several problems such as putting a strain on government funds and rises in taxes, I believe that governments can successfully resolve these challenges by encouraging early savings and flexible employment for senior citizens.