28. On Retirement:How Foolish Is the Mandatory Retirement System

The state should bear the responsibility of providing for its citizens' retirement, but there is no need to implement a mandatory retirement system. Whether an individual retires should be entirely up to their own will. Even if they have reached old age, if they are willing to work and still capable of doing so, what justification is there to force them into retirement through a mandatory system?

The state has an obligation to provide pensions to all citizens who reach retirement age. Receiving a pension does not preclude continued employment—the two are not mutually exclusive. Therefore, there is absolutely no need to mandate that individuals cease working entirely in order to qualify for pension benefits.

The pension standard must be set at a minimum level enabling seniors to live decently on their pensions alone, yet it should not exceed the minimum wage standard. It is highly unreasonable and profoundly unfair for a nation's pension to surpass the wage income of its young and able-bodied workers.

The level of pension benefits a citizen receives should be directly proportional to their contributions to society. Every citizen who has participated in labor has contributed to society, but the extent of this contribution requires a quantifiable standard: the amount of taxes paid to the state. As mentioned in our article "On Taxation," every individual should have a tax account that displays their real-time tax contributions to the state. Generally speaking, those who spend more money pay more taxes. Individuals who pay more taxes contribute more to society and should therefore receive relatively higher pensions.

Beyond using tax contributions as the universal benchmark for pension benefits, special consideration should be given to individuals who have made exceptional contributions to society. For instance, those who have served society in fields such as science, national defense, culture, and education may be eligible for enhanced pension benefits.

For an elderly individual, upon entering old age, the pension serves as one source of income. This income ensures they can maintain a dignified life even without other sources of support. This does not preclude other income streams, such as savings accumulated over a lifetime of work, continued earnings through labor if physical health permits, or financial support from children.

In essence, democratic nations must guarantee every citizen a dignified retirement, enabling each person to depart this world with dignity.