Due to the lengthened lifespan among the global population, retirement benefits are an issue of growing concern among employers and employees alike. Because of the increased lifespan, the global population is expected to lead more active and healthier lifestyles in the years to come (Rappaport 151). Consequently, we are likely to witness a novel approach in retirement, such as continued work on a voluntary or paid basis.
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Faced with a steadily rising cost of production, employers are feeling the heat when it comes to paying retirement benefits to their employees. As such, some are even contemplating reducing the monthly payouts made to such retirement benefit schemes. On the other hand, employees are retiring when they are well advanced in years and as such, they are not likely to enjoy the retirement benefits fully, compared with past generations (Rappaport 152).
This is a source of concern to them because some of the employees feel that they should be able to enjoy this contribution fully since it is normally deducted from their pay anyway. Although there are a couple of well-designed retirement benefits available in the market, the four main ones include social security, disability benefits, privacy saving, and veterans benefits.
Social security benefits: Under this program, employees can benefit from great social benefits. Besides, the social security program supports even nonmembers and humanitarian programs as well. With social security, every retiree-contributor can be is assured of lifetime benefits. This is important because it offers stability in society. It is also a form of investment for an employee because he/she makes their contribution as they work and the more the contribution, the more the expected social security benefits. On the other hand, the employer benefits from the social security benefits in that he/she is likely to witness an increase in production. This is because the employees are sure that they will have financial assistance when they are no longer productive.
Disability benefits: these are normally payable to an employee once he/she is incapacitated owing to a serious health condition. One of the advantages of the disability benefits to the employee is that when there is proof that indeed they have become incapacitated owing to illness, they only need to fill in the necessary application to enable them to receive the benefits. Thereafter, they are entitled to full retirement benefits in the same way as their fellow retirees who have worked to the full retirement age.
One of the disadvantages of the disability benefits to the retiree is that they will be getting benefits for work that they have not done. This is also a disadvantage to the employer because he/she has to pay these benefits even though the employee is no longer capable of working. However, paying disability benefits reveals the human side of the employees, in that he/she can empathize with the situation that has befallen the employee.
Private savings: this is yet another option for an employee to enjoy their retirement benefits. This product option is especially ideal for those employees who would be interested in maximizing their pensions, along with other benefits. On the other hand, private saving can be very costly and normally demands higher contribution amounts from both the employees and the employer. Besides, it can be made for a very long time, and this may affect the productivity of the employee because they have to strain with the little money that they get at the end of the month. For the employer, this means reduced production because employees have an issue to deal with.
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Veterans benefits: these benefits are usually provided since the law offers protection to veterans, along with their families. This is an advantage to the retiree because they can benefit from government dividends for example, that enables every veteran to enjoy various benefit programs including health care services that are specially designed to cater to their needs.
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