The contents of this document are confidential Is Retirement Dead? M ARCH W ILLIAM W RIGHT E RIN K UZZ A JAY R AGHAVAN

The contents of this document are confidential Snapshot Page 2

The contents of this document are confidential Quick Facts 3

The contents of this document are confidential Page 4 Quick Facts In 1991, about 50% of all American workers planned to retire before they reached the age of 65. Today, that number has plunged to less than 25%. In the 1980’s there were 5 Canadians actively in the workforce for every 1 worker on CPP (Canada Pension Plan); by 2013 those numbers will be 2:1. Between 1991 and 2007, the number of Americans between the ages of 65 and 74 that filed for bankruptcy increased by almost 200%. Despite the fact that women have a higher life expectancy than men, the retirement age for women is lower than men in many countries.

The contents of this document are confidential Page 5 Quick Facts In countries like France and Italy only 1% of the population above the age of 65 are employed. This number is as high as 10% in the UK and 20% in USA. In countries like Australia, USA and now Canada, compulsory or mandatory retirement on attaining a certain age is generally unlawful (subject to exceptions for some sectors such as the military or where BFOR exists (fire suppression, pilots, etc.). In the Roman Catholic Church, Pope Paul VI introduced a mandatory retirement age of 70 for priests and 75 for bishops and archbishops; there is no mandatory retirement age for the pope as he holds that position for life.

The contents of this document are confidential World Demography – at a glance 6

The contents of this document are confidential Page 7 World Demography – at a glance USAJ APAN UKI NDIA C HINA C ANADA Old (65+) 13%23%17%5%10%15% Young (- 14) 20%13%18%31%17%16% A massive 73% of China’s population is the age bracket, which means that in a couple of decades China is likely to see a giant bulge in the percentage of its aged population.

The contents of this document are confidential Retirement Age 8

The contents of this document are confidential Page 9 Retirement Age S.N O.C OUNTRY R ETIREMENT A GE 1Turkey 45 2Italy 59 3Korea 60 4France World Average 63 6Japan 65 7United Kingdom 65 8Norway 67 9Germany 65 (to be increased to 67) Apart from in rare cases such as Sweden and Ireland, the average retirement age across countries has been rising over the years.

The contents of this document are confidential Public v Private Sector 10

The contents of this document are confidential Page 11 Process P UBLIC S ECTOR In the US, public sector employees have fixed retirement ages that are quite low: e.g. local police (55-60), fire fighters (55-60), law enforcement and correction officers (57), air traffic controllers (56) etc. Retirement age for employees in Indian Public Sector Undertakings is set at 60, with a proposal to increase it to 62. Due to attractive pension benefits for the public sector in Canada even on early retirement, Canada’s public sector employees retire earlier than anywhere else in the world. Studies from the late 2000s showed that while the general Canadian labour force retired at age 62 on a average, the public sector retired at 58.

The contents of this document are confidential Page 12 Process PRIVATE S ECTOR Anti age discrimination laws in some countries prohibit private employers from fixing a retirement age in countries like the US. The Bar Council of Delhi proposed that, in order to maintain the high standards and efficiency of lawyers there must be regulation on their retirement age by (i) preventing persons who have crossed 45 years of age from enrolling; (ii) setting the retirement age at 70. In Canada, whether law firm partners can be forced to retire in midst of litigation (are they ‘employees’ or not?)

The contents of this document are confidential 13 Some Pertinent Questions

The contents of this document are confidential Page 14 Some Pertinent Questions 1.What are the goals of retirement? Leisure, basic living expenses, rewards. 2.Why do people retire? Why Don’t they retire? 3.Is retirement savings an individual, employer or government function? Or a combination of all three? The Australian Model: The Age Pension Their version of Social Security and it pays up to about $28,000 a year to people roughly 65 and older (scheduled to rise to 67 in 2023). Australians don’t pay into the system; the money comes from the government’s general revenues. Means test – only 56% of ppl collect full amount. Mandatory retirement saving program known as The Super (short for Superannuation Guarantee) Employers are required to contribute into tax-advantaged retirement plans 9.25% of earnings for virtually all employees age 18 to 70. That percentage will gradually rise to 12% by Employees choose where to invest the money. No loans or early withdrawals permitted. As a resulte, wage increases average 0.5-1% Voluntary savings average 10%

The contents of this document are confidential Page 15 Some Pertinent Questions 4. What are the solutions to funding issues? - Raise contribution levels - Lower Benefits - Raise Retirement Age 5. Changing to Defined Contribution: Issues of a two class system for decades 6.Is it better from a societal standpoint for people to retire or is it better that they don’t? - If so, how do we help them do it ‘gracefully’? 7.From a purely legal perspective, is it better for people to retire or is it better that they don’t? 8.What can companies do to assist? What should they do? Do they want to/care?