Retirement age is influenced by a group of factors, such as demographic distribution. Demographic distribution shows the composition of a population in terms of different age groups. So, governments take the ratio of elderly people to young people into consideration when deciding the retirement age. If elderly people maintain the larger proportion of the population, the retirement age is expected to be higher, as the are not enough younger people in labour force to replace them. Therefore, the ratio of different age groups plays significant role in determining retirement age.
Early retirement can have positive effects on society. One considerable advantage is that it can improve people’s quality of life and contribute to greater life satisfaction. Retirees tend to have more free time to spend it with their families and grandchildren, pursue their hobbies and so on. Thus, it can be beneficial for their mental health after decades of work and also enhance their well-being.
Despite its potential benefits, early retirement can create several challenges for society. One of them is is losing skilled and experienced workers sooner, and it is hard to replace years of experience in a short period of time. For example, if well trained doctors, engineers retire early, younger workers may not yet have the necessary experience to replace them effectively ,and that could reduce the quality of certain services. As a result, losing experienced employees can create long-term troubles.
To sum up, early retirement can have both pros and cons to society. So, governments should be careful about deciding the exact retirement age.