Economics and the Role of the Retiree - Research Paper Example

Economics and the role of the retiree: Retirement is considered to be the stage in one’s life when one decides to abandon employment for pension benefits or is forced to leave job owing to reduced physical fitness issues. Research reports suggest that presently, an increased number of people even personally like to retire earlier than necessary for taking benefit of the pension and other financial support facilities provided by the state. In some parts of the world, the employers are essentially required to grant bonuses to the retired employees, according to the number of their employment years. The combined weight of financial provisions, both on part of the government agencies and the employing organizations, is sometimes too heavy to be easily endured and managed, with the result that the retired people significantly influence the economy of a country. This influence of the retired employees on the economics does not go unnoticed by the governing agencies and so there is an ongoing debate about delaying the retirement age and so alleviate the financial pressure exerted on the economy. This is an acclaimed fact that societies and cultures have huge impact on the aging processes. Lately in some countries, certain laws have been made that require the employers to deal the retirement issues in an easy way and delay the age of retirement. Such revolutionary steps are capable of bringing a drastic change in shaping the social and cultural structures in addition to slowing down the aging processes. This is the general consensus among the sociologists that the retirement phase greatly speeds up the aging processes, because retirement is armed with many depressing agents that are potentially capable of causing declines in physical fitness and social interactions that consequently lead to rapid aging of an individual. Aging can be greatly reduced in the working people by providing first class medical facilities that are within everyone’s approach, irrespective of class difference. Provision of such health facilities on a larger level can ensure more healthy and active years, due to which retirement age can be delayed and economic pressure can be handled. Such strategies are more favorable when compared to the unconvincing steps taken by the governments that are largely defended on the basis of budget problems. In most of the cultures, the elderly people are themselves required to handle the financial burdens and so various employment patterns can greatly affect the aging processes. Recently, the economic environment has influenced and somewhat changed the traditional transitional path from worker to retiree. This economic depression, which is followed by a gradual recovery process, has not only affected millions of people and business organizations, but the government agencies have also been shaken by this economic crisis. State agencies around the world are not oblivious to the near-term and long-term effects of the budgetary pressures caused by the economic crisis. Near-term affects include handling the social crisis caused by poverty stemming from unemployment issues, while the long-term affects include provision of health finances and retirement finances to the retired population, in spite of the huge fiscal challenges raised by economic pressures. Jobs are getting more precarious from the safety perspective and the precarious environment in the employment settings can disturb the relation between the employers and workers. The numbers of the retired people entitled to the benefits are more then the employed workers and the retirement finances pose a serious threat to the economic burden. Maintaining the quality of life is a major issue in rapidly aging populations, which consist of an increased number of retired people. Health facilities and socio-economic status are the two key elements, when we talk about quality of life. According to Obaid & Malloch-Brown (2002), aging is presently occurring at an unparallel rate and differences between the quality of life of aged people living in developed areas and others in developing countries are too great. With the changing economic forces, we have to see if the issues like retirement expenses, health facilities, and pension funds are being adequately addressed or not. The recent economic crisis has resulted in higher unemployment rates, and given that the percentage of older people is on a rise in a society as compared to the working individuals, the quality of life for an aged person has significantly changed. It would not be an exaggerated statement if it is said that the changing economic trends have posed a serious threat to the living standard of the older community. Older people want to be economically active and play an important role in societal development, and this intention of retired people is somewhat marred by unemployment issues. Atchley (cited in Price, n.d.) has explained the six-stage retirement process, which is not any ordinary process but entirely a life stage. The first stage is called the pre-retirement stage, which is kind of a trailer of the after-retirement life. It includes the detachment from the workplace in addition to contemplating that what retirement life will have in store for an individual. Second stage is the retirement phase that depicts complete exemption from the paid employment and which, consequently progresses towards three optional paths for a retired individual. Those three paths are termed as honeymoon, immediate retirement routine and rest and relaxation. In the first path, the retired individuals pretend to behave like they are enjoying the honeymoon period and immerse themselves in engaging activities. The second path is opted by those who have already a lot on their plates, and whom retirement does not affect considerably. Rest and relaxation path is followed by those who have lived an extremely hectic employment life and who prefer to rest completely in the retirement life. Third is the disenchantment stage that depicts the chances of depression coming with retirement and that may leave a retired individual paralyzed with hopelessness. Actually, honeymoon and rest stages do not last for life and there is always a risk of depression for a retired person. Fourth is the reorientation stage that is characterized by the production of innovative ideas by the retired people, once they re-emerge from depression. This means that older people start finding ways that can help them utilize their minds in a constructive way. Fifth is the retirement routine stage that consists of the feelings of satisfaction and contentment experienced by the retired people regarding the retirement period. Finally, the sixth stage is called the termination of retirement, which means that the retirement role becomes less important in older individuals. The recent economic crisis and the changing trends in economics have affected the retirement trends in the field of nursing also. Quan (2008) has succinctly explained the economics effects on the nursing profession. According to her, the economic downturns have stimulated more and more nurses to actively rejoin the nursing profession, in order to finance their families. So, this has led to an overall increase in the number of the hired nurse and a decline in retirement rates, but job security is understandably reduced owing to the recent economic instability. This would not be wrong to imply that the changing economic trends are bringing many retired nurses back to their professions, with the result that the older nurses can now do something creative in old age. The economic burden has led to a decline in the retirement funds in nursing and what with the high financial expenses, more retired nurses are coming back to rejoin the workforce. There are various alternatives available in exchange for traditional retirement, which give working people a chance to distribute the periods of work and rest throughout their lives. Some of the alternatives discussed by Brandon (2010) are sabbaticals, mini-retirements, and focused career breaks. Sabbaticals refer to the temporary leave taken by an employee for a fixed time period, after which he/she can resume work as before. Mini-retirements also refer to distributing the retirement period in small episodes. This means that an employee can take a break of four weeks, and then again actively rejoin employment. Focused career breaks refer to taking a break not only for relaxation purpose, but for fulfilling some other equally important job. Such alternatives available now can greatly facilitate the employees and save them from depression associated with traditional retirement. Retirement planning refers to taking care to save enough money for the retirement period. In today’s tight economy, it is increasingly important for young employers to keep the retirement planning in their minds in order to cope with the ever-increasing financial costs. They should make it their business to wisely manage their wages and consequently, investing for the future so that no serious issues get raised in later in the retirement phase. The changing economic trends have led to mounting financial burden on the state agencies, and so the retirement funds are already on a decline. In such a situation, young adults have no chance but to make wise financial decisions, and that is all retirement planning is about. Retirement planning options play a very important role in career selection for young employees. Such options depend largely on the age, financial situation of an individual, the retirement plans offered by the employing agency, and what an employee desires to seek from retirement after the retirement phase. References: Brandon, E. (2010). 5 Alternatives to Traditional Retirement. Retrieved from http://money.usnews.com/money/retirement/articles/2010/06/07/5-alternatives-to- traditional-retirement.html Obaid, T. A., & Malloch-Brown, M. (2002). Second World Assembly on Ageing. Retrieved from https://www.unfpa.org/public/News/pid/3750 Price, C. A. (n.d.) Stages of Retirement. Retrieved from http://ohioline.osu.edu/ss- fact/0201.html. Quan, K. L. (2008). Economic Effects on the Nursing Profession. Retrieved from http://trusted.md/feed/items/klq727/2008/11/19/economic_effects_on_the_nursing_profe ssion#axzz144xTO3Hm Read More