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Thursday, May 24 2012

Business Blog: Retirement reforms

With 50 being the new 40, 60 the new 50 and 70 the new 60, the decision to scrap the default retirement age of 65 makes sense.

Many people now wish to work longer because they feel able to, because it keeps them active, or because they need to for financial reasons, especially if they are relying on a private pension.

But the CBI are decidedly grumpy about the idea. They reckon it will make it more difficult to get rid of people who aren't up to the job, and will make people planning more uncertain.

But if people are not much good, most of them will know it and recognise that it's time to go. If they don't recognise it, then they have probably been under-performing long before their 65th birthday and should have been shown the exit door already.

The one thing that bothers me is the comment that Professor Richard Scase told me years ago, based on actuarial observations.

"If you work until you're 50, you live until you're 80. Work until you're 65 and you live until you are 70."

It may be time for this warning to be changed to "Work until you drop".

The big question is: Is work good for you and does it prolong active life. Or does it weaken you? I guess it depends on the type of work and level of pressure. Avoiding too much heavy work and stress, working fewer hours, staying calm and having a sunny disposition, might, just might, that one foot out of the grave.

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