The State Bank of Pakistan (SBP) has proposed an increase in the retirement age in a bid to reduce the average coverage period of retirement benefits and ease the pension burden on the country’s budget.
According to the Q1 FY21 report by the SBP, public sector pension spending has grown significantly in the previous decade, rendering the current structure of pension payment unsustainable.
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The report notes that the overall pension spending as a share of tax revenue reached 18.7% during FY20, almost twice the level from a decade ago.
Moreover, the overall pension expenditure during FY20 went beyond health and education budgets on both federal and provincial levels and was half of the total public sector development budget.
During the last five years, civil pensions, including federal and provincial, accounted for 63.2% while military pension constituted 36.8% of the total pension expenditure.
SBP has attributed the rising pension burden to two factors i.e. an increase in life expectancy and lower-than-expected investment returns.
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The report concludes that “increasing the retirement age will support in increasing the contribution period once the government opts for a funded system in the subsequent round of reforms.”
Both the World Bank and International Monetary Fund (IMF) have also raised concerns over Pakistan’s rising pension expenditure.
The international financial institutions predict the civil service pension expenditure to exceed the civil service salary spending by 2023 in Punjab and 2028 in Sindh.
Wati, What, After Age of 35 OR 40
MENS WOMENS Are not physically, stable and no one industries want’s to hire them
Pehli Ki Log Alag the Ab k Log Body Wise Alag hai
Pension Age less than 50
It will save commutation given to employees billion of rupees.
Retirement age has already been increased in various countries including
It shuold be 65 because it save Retirement fund and pension but timely trianing of staff is very necessary to keep update staff.
May the people retired in Dec 2019 be benefited through this scheme ?
Already millions of youth are jobless people after 60 are not competent enough and energetic, after retirement a complete promotion cycle occurs and jobs created at entry level, to save funds you want to spoil youth..? Go for VSS and golden hand shakes with lump sum payment rather such things..
100% agreed golden hand shake scheme and should great jobs for youth
Not at all it’s good idea. Lots of youth waiting for the job. People who reach on age or service criteria should go home and vacant the seat for job seekers.
I think pention facility should be given to low grade retired persons. There is no need of pantion for upper grade retired persons as they get paid highly during their job period and have strong finicial conditions so they did no deserve any golden hand shake deal and no pansion facility
the goverment should keep a check wether the person who is taking pension is alive or not and if the person is dead then what is the situation of the family plus whatever you do a person has to retire so its better to give youth an opportunity
Only 65% of pension goes to civilians while the rest of it goes to army personnel. Their pension amount is a lot more than a civilian who has served 30-40 years and they even retire in very young age compared to civilians. Instead of increasing retirement age for civilians, why not just start the pension of army personnel when they turn 60?
You mean they should get regular pay upto age of 60 even if they retire early
Retirement age should be 50 n 25 year of service maximum in all departments as no body is indispensable. Also political government tenure should be maximum 4 years. Lump sum handsome amount ie 100 %commutation should be paid to retirees so they become part of country ‘s economy after retirement n dependent on pension at all.