CURRENTLY, government employees retire upon reaching the age of superannuation at 60 years. The government is thereby under obligation to pay pensionary dues to them, and to allocate funds for that purpose in the budget. At the same time, the government remains under constant pressure to reduce its current expenditure. This is a tricky balance to strike for the government.
One of the options to address the situation is to consider enhancing the employees` retirement age from 60 to 62 or 63 years. By doing so, the government would at least be free of pension liability related to employees due for retirement at age 60 during the next few years.
China is also going to enhance the upper age limit of its male workers from 60 years to 63 years, and for female workers from 55 years to58 years duringa phased process starting Jan1,2025, enabling them to continue their services for another three years. Women in blue-collar jobs are due to get a five-year extension, with the retirement age being reset from 50 yearsto55 years.
The federal government may give the suggestion a positive consideration becasue the prevailing economic conditions demand urgent reduction in public expenses to the maximum possible extent.
