• The retirement age debate is not unique to France, citizens should plan better
The ongoing protests and political unrest in France have caught the interest of the international community. Although perhaps the verdict on the issue is more divided than the French would like to believe.
Earlier last month, French president Emmanuel Macron passed a bill without a parliamentary vote. The Bill proposes several pension reforms and also raises the retirement age from the current 62 years to the proposed 64 years. It was met with outrage by opposition and labor unions.
To protest, civil workers stopped working and picking up trash in the streets of Paris. Farmers joined the movement by dumping waste in the posh neighbourhoods of Paris. In fact, the city that was once known as the city of love turned into the city of trash overnight. Mountains of trash lined the streets, according to videos posted on social media.
Workers and union members took to the streets for several days, protesting the 'dictatorship' of Macron. Most were seen carrying cards that read: "Work to live, not live to work". Protesters were met with fully geared riot police, who did not hesitate to release tear gas and water cannons on the unwavering protestors.
Meanwhile, across the pond, France's neighbouring country, the United Kingdom, also passed a bill raising the retirement age from 66 to 68 years. While the country protested a little for a few days, it seems citizens have rolled over and taken the punch on the chin.
As it turns out, most of the countries in Europe have a retirement age of 65 years. With some Scandinavian countries and Italy having their retirement age at a whooping 67 years of age! Which is why as much as other European people would love to empathise with the plight of the people of France, they have bigger problems on their hands.
With the current raised cost of living, most pensioners find it hard to make ends meet with the little income they receive from their pension. There are many heartbreaking stories of how old people who worked for 40 years are receiving less than a thousand euros a month, which hardly covers the basic necessities.
There is also the problem of governments dipping heavily into the pension funds, leaving the fate of poor retirees and contributors unknown. Although pensions are a good plan and wise investment to have, not to mention mandatory in most countries, history has shown that a person who faces retirement cannot manage to rely solely on their pension.
As such, most workers, especially at the height of their careers, need to make good investments and proper plans for their retirement age. What about the people who are unable to work until reaching the age of retirement? What if you want to retire early and enjoy the time you have left?
While the retirement age in Kenya is 60 years, most of us cannot fathom the idea of having our parents work until then. My mother worked in the banking industry for 20 years, and at the rise of automation in the mid 90s, most of my mother’s colleagues were ‘gently nudged’ into early retirement. However, as much as our parents are still capable of working, most of us cannot fathom seeing our 60-year-old parents getting dressed for work.
Luckily, most of our parents’ generations (or the Boomers) had many opportunities to create alternative incomes for themselves as well as build or buy homes in their earlier years. This is not something our generation will know as we can barely manage to pay rent in our thirties. The discussion about raising retirement age and lowering pension is a reminder to all of us working that we cannot simply rely on our jobs and pension. We need to make the right decisions for our retirement now, while we are still young.