1. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age

2. Is there really a normal retirement age? The problem facing Bismarck in the 1880s was Marxist unrest Social reforms were consequently necessary Bismarck (1881) addressed the Reichstag – ‘those who are disabled from work by age and invalidity have a well grounded claim to care from the state’ National government should contribute to the pensions In the 2000s retirement ages are creeping up Youth unemployment is causing debate – the ‘lump of labour’

3. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age Is there really a normal retirement age? (Germany) Original age chosen was 70 – later reduced to 65 Matched German life expectancy at the time – cost being the issue Germans now suggesting that 67 is more suitable

4. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age Is there really a normal retirement age? (USA) USA – American Social Security (1935) – selected 65 Private and state schemes were using 65 or 70 Pragmatic choice – at that time actuarial studies suggested this was sustainable with moderate payroll taxes In the 1980s realised that balance between workers/pensioners required reforms Currently benefits depend on a person’s year of birth Subject to five yearly reviews

5. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age Is there really a normal retirement age? (UK) British State pension Until 2010 the retirement ages were different for men and women – Men - 65 – Women - 60 From April 2010 - the age is gradually being harmonised (65 by 2018) Pensions Act 2011 - State pension age for both men and women will begin rising from 65 in December 2018 to reach 66 by October 2020 Will rise to 68 by no later than 2046

6. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age Is there really a normal retirement age? (South Africa) Labour legislation doesn’t stipulate a retirement age General understanding that the "normal" retirement age is 55, 60 or 65 Employer and employee must agree on a retirement age Employment contract A company norm (Pension or Provident Fund Rules) Company policy. No one may be unfairly discriminated against because of their age

7. Meeting Customer’s Retirement Needs and the Effect on the Retirement Age Is there really a normal retirement age? (South Africa) Current situation (including SOAP) - Sustainability rather than need Pensioner time bomb – Longevity Pensioner time bomb – demographics Other considerations – Youth unemployment (40%) Is there a big difference between Germany’s problem in the 1880s and today? How should the needs of members, employers and society be balanced?