French workers go on strike.......have your say :)

[Deadly_king]

41.5 is too long.

It is indeed way too long

Let's take the case of a medical practitioner for example. In order to become a professional he needs to study for at least 6 years after college whereby he'll already be 25 years old.

So how can he reach 41.5 years at the service of the states since he still has to specify himself which will require another 4-5 years

[Alpha]

In Australia, retirement age is death, as my teacher says.

[Deadly_king]

In Australia, retirement age is death, as my teacher says.

Is it mandatory or optional?

[Alpha]

Mandatory cause no pension is given by the government.

And optional, you can insure your own pension scheme as from an early age.

[$tyli$h Executive]

The goal of life should be development and ensuring a better future by earning more money. Not to rely on pensions.

As for those who are concerned about the 'security', the power of compound interest can make anyone rich, by the time they get on their retirement age.

[Alpha]

And what about taxation? Isn't it a form of 'investment' too?

[$tyli$h Executive]

And what about taxation? Isn't it a form of 'investment' too?

Tax is (in a transparent govt.) used mainly to finance public goods and combat externalities. Its not an investment (well, not directly!).

Imo, its the responsibility of the individual to ensure their pension rather than making a fuss over the retirement age. Again, the power of compound interest is there for the lazy people. $100 saved over 40 years can be a lot of money in a compound rate of 8-10% (more than he would, in a normal circumstance, require in his old age)

[$tyli$h Executive]

and hence the french workers should, instead of organising strikes, propose these to the government:

1. Ban all pensions from government.

2. Half all taxes.

[Master_Key]

Tax saving, which is investment in loans and smth else may be useful in future but not the tax directly.

[Alpha]

Tax is (in a transparent govt.) used mainly to finance public goods and combat externalities. Its not an investment (well, not directly!).

Imo, its the responsibility of the individual to ensure their pension rather than making a fuss over the retirement age. Again, the power of compound interest is there for the lazy people. $100 saved over 40 years can be a lot of money in a compound rate of 8-10% (more than he would, in a normal circumstance, require in his old age)

To finance public goods and combat externalities, welfare maximisation, that is the aim. And retired people who do not have a pension schemes are an externality for the society. They shoot up poverty rates, decrease consumption, and hence investment, economic growth... the usual trend.

We shouldn't, however, forget the political and social aspect of not providing pension schemes to people. Like you made it clear above, there will no incentive to pay tax if people know it will not come to use in their old days. Any government has to be highly vigilant of his opposition party. They will strike where it is going to bang more. A 'wise' government that wishes to remain in power knows how to play with the psychology of its people.

It is the responsibility of people as much as that of the government, I don't deny. But it's also their responsibility as 'responsible' citizens not to commit crimes, frauds, corrupt, kill, etc. Bottom line: it is their responsibility, but who cares?

[$tyli$h Executive]

To finance public goods and combat externalities, welfare maximisation, that is the aim. And retired people who do not have a pension schemes are an externality for the society. They shoot up poverty rates, decrease consumption, and hence investment, economic growth... the usual trend.

This would not be the case if they self-financed their pensions.