Retirement Age

I read a news item last month that the government is planning to extend the retirement age of all central government employees by two years — from the current 60 to 62 years.It was believed, 'in principle' a decision has been taken on this regard and a formal announcement was expected any time .However contrary reports appeared in the press today that the government has rejected the proposal to increase the retirement age from 60 to 62 .It was said the government is in favour of an younger beuracracy .Such conflicting reports over this issue has been circulating since 2009 .What ever it is, there is no uniform policy regarading retirement age in the country .Among private institutions/organisations and quasi government bodies also the retirement age varies. The teachers and judges have a retirement age beyond 60 .Is it not discriminatory in a democracy ?What is the logic behind this ! I beleive the UGC pased resolution increasing the retirement age of University teachers from 62 to 65. I presume there would have been some UGC official in the age of 62 who took this decision !.Recently Mr.P.K.Bansal minister of science and technology said the government is planning to increase the retirment age of scientists from 62 to 64 years .The reason put forth by the minister is that "We do not want to deprive the government of the services of talented people".But this could be applicable to anyone in any profession.In 1962, Nehru increased the retirement age from 55 to 58 after the Indo-China war .In 1998 Vajpayee government extended the retirement age from 58 to 60 to defer Rs 5200 crores as retirement benefits expenditure.At that time all state governments and public sector undertaking followed suit.It is believed this helps government to defer lumpsum payment of retirement benefits and makes more funds available to the government at its disposal. On one side we call people above the age of 60 as senior citizens and bestow many benefits to them and on the other side we are planning to increase the retirement age from 60 to 62 !.Is it not an oxymoron ? World over, the retirement age has been increased gradually .Currently in most countries except US and Germany the retirement age is 65 .In US and Germany the retirement age is 67.But I feel it should be looked at in an Indian context and prespective.

It is true the government has to make a huge pay out as retirment benefits to those who retire. I am at a loss to understand the logic of defering an expenditure,especially an expenditure which can not be deferred for ever.Any day it is an expenditure.If not today ,after two years the same expenditure has to be made.The benefit derived by defering a payment could only be a short term benefit to the government. It must be borne in mind , there is great difference between the salary of a senior government employee and a newly recruited employee.Besides the benefit derived as the difference in expenditure will be long term .If it is a fiscal decision, to increase retirement age beyond 60,I don't think,the decision takes in to consideration other cascading effects of the decision on the youth of the country.Once the retirement age of the central government staff is increased,this would again be followed by all state governments and public sector undertakings.Our nation has the largest youth population ,a sizeable number of them, more than 50 % of the population are below the age of 25.It is claimed this is the greatest demographic advantage of India over other nations . But increasing the retirement age from 60 to 62 would be perilous to their empolyment chances.One can imagine the gravity of this decision in a country with high unemployment rate.I hope government would stick to its present decision and would not increase the retirement age on the plea of defering lumpsum payment of retirement benefits.