In many nations, when an elderly person reaches a specific age, they are required to retire. Regardless, mandatory retirement brings numerous new career prospects for young people, but it also has some downsides for companies as well as society.
To begin with the positive side, forced retirement is advantageous for a variety of reasons. First and foremost, it will provide opportunities for the younger generation to enter the workforce, resulting in higher productivity and increased profitability for the organisations. Seniors, for example, may have physical movement limitations that make it more difficult for them to complete work duties, making them less productive. In addition to this, retiring at the age of 65 allows people to have more time to spend with their family members or to indulge in hobbies and interests that bring them greater happiness in life.
On the other hand, there are certain disadvantages to retiring when workers reach the predetermined retirement age. Older individuals have more experience and expertise than younger generations, and forcing them to quit occupations may result in a skills deficit, which would negatively impact businesses. For instance, experienced people have greater ability and competence to handle any difficult circumstance more effectively than new recruits. Furthermore, when the number of people rises due to mandatory retirement, more individuals will qualify for pension plans or other benefits that impose a heavier tax burden on the younger generation.
In conclusion, forced retirement provides many new job opportunities for young people while also giving seniors more leisure time. However, there are downsides to this strategy, including the loss of a highly-skilled employee and an increase in taxation for society.