MARK SMITH: Working longer can be part of solution for ageing societies

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MARK SMITH: Working longer can be part of solution for ageing societies
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What the French protests tell us about the changes in labour markets and working lives

Regardless of expectations and the social contract, part of the challenge for retirement is that the numbers do not seem to add up. The dependency rate captures the proportion of the population outside the working age compared to the working age. If there are too few people working and too many dependants, something needs to change — more contributions from workers, more business taxes, long working lives or poorer pensioners.

”. In SA and many other emerging economies the population statistics look different. Life expectancy is short for many and most do not have the resources to retire in security. However, the trend of falling birth rates combined with longer lives, and therefore rising future dependency ratios, is occurring everywhere, albeit at a slower rate for middle and lower-income economies than in richer economies. As a solution, working for longer may not be such a bad thing.

Since most of us did not have the success of McCartney and the Beatles, working a bit longer will be inevitable. With better working conditions working longer may also be part of the solution for ageing societies and part of having longer, healthier lives with purpose.

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