The Employers’ Association has issued a handful of proposals in an effort to deal with labour shortages. Among these proposals, they suggested that the government should offer a half pension to workers who choose to stay in employment between the pensionable and retirement age.
This would mean making hundreds of experienced workers available to the country. For reference, the pensionable age refers to the age at which a worker qualifies for a pension. Meanwhile, the retirement age is when workers are required to retire unless they have an arrangement with their employers.
Workers who qualify for a pension but choose to stay on until retirement age are currently losing the pension for those years in between. In contrast, those retiring upon reaching pensionable age prior to retirement age receive their pension but cannot work.
In other words, workers past retirement age can work and still receive their pension. As per the association, ‘This incentive can retain hundreds of persons in the labour force in the private sector and encourage many to remain in employment voluntarily also beyond retirement age,’.
‘Workers of pensionable age are especially valuable for the purposes of training and mentoring new-entrants to the workforce.’, it added.