Question

Explain how the retirement decisions of older workers have an impact on the Nation's economy.

Answer 1

Ans.

Retirement generally means a person who gets pension , income from social security and also from financial assets and the persoon who recieves none of the above is not taken into consideration.

So if people retire more , means the production capacity of the economy will drop because of the decreasing labor force because of retirement and also by letting other things as equal, small number of retirement will mean that supply will increase of experienced workers to the employers which will result in more output and people will less rely on savings. So if more people choose to retire to get the benefits , then it will decrease the overall production output of the economy , which will have adverse effect on our economies growth and also because people tend to save more and spend less when the person is retired.

NOTE-Sometimes an individual who retires from 1 job to work as a part time employee, and the person from defence background who gets retired early and later on work at some other place , are mainly considered a retired person if there income is less than the social security benefits and pension.

------------------------------------------------------------------------------------------------------