Mandatory Retirement

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Mandatory retirement is perhaps a necessary evil; as older employees are forced out of the work force, it creates space for new, younger employees. Mandatory retirement is a form of age discrimination, it forces a person to retire because they are a certain age; it does not take into account if that person wants to retire. It also does not take into account the financial standing of the individual, or if they are physically or mentally still capable of doing the job.

Although mandatory retirement is not largely popular, it still has an effect on many older workers and how they plan for retirement. "Mandatory retirement involves less than 1 percent of the work force and so opens up only a small fraction of the total jobs", because mandatory retirement effects such a small population, "Nor is forced retirement needed to create vacancies; most older workers retire voluntarily, and still do so even though mandatory retirement has been largely outlawed in the United States" .

Not only is mandatory retirement illegal in many states, when polled it was found that 90 percent of adults, and two thirds of business executives were in opposition to a set mandatory retirement age . It seems odd that so many people are opposed to mandatory retirement and yet it is still enforced in many workplaces.

Perhaps the answer lies in the cost of senior employees; with pay raises and laws on paid vacation, it seems that the longer an employee works for the same company, the more expensive they are. It is also known that older people have degenerating health, and are more likely to be injured in an accident; the cost of life insurance increases with age, and they are likely to use more benefits to cover the cost of medical care .

Demograp...

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... elderly and the seeming decline in youth to fill their voids will itself abolish mandatory retirement.

Bibliography

Martin Lyon Levine, Age Discrimination and the Mandatory Retirement Controversy; The Johns Hopkins University Press, Baltimore and London, 1988.

Julia M. Kreps, Lifetime Allocation of Work and Income: Essays in the Economics of Aging; Duke University Press, North Carolina, 1971.

Carol Segrave Humple and Morgan Lyons, Management and the Older Workforce: Policies and Programs, AMA Management Publications Division, American Management Associations, 1942.

William B.P. Robson and A BNAC Statement, Aging Populations and the workforce: Challenges for Employers, Printcrafters Inc., Winnipeg Manitoba, 2001.

George W. Adams, Mandatory Retirement and Constitutional Choices, Industrial Relations Center, Queen's University, Kingston Ontario, 1992.

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