Insane aspects to our retirement systemPOSTED: 08/6/15 7:07 PM
There are many insane aspects to our retirement system but the cessantia-system beats it all.
Without an obligatory retirement age, employers would have to fire employees if they do not retire voluntarily. If employers do that, the cessantia-payment kicks in.
This is not only a heavy burden, it also makes the local labor market completely rigid. Employees who change jobs, say, after fifteen years, lose those cessantia rights (a week or more for each year of service) and they will have to start at their new employer all over again.
Cessantia is not only every employer’s nightmare, it is also detrimental to a vibrant economy.
The politician who has the guts to tackle this outdated system will most likely be burned at the stake, but future generations will be grateful for her of his courage.