It is ironic that George Magnus’ proposed solution to the presumed retirement crisis is for people to work longer or simply not to retire when they want to. The arguments in favour of pushing older people to work longer are based on fundamental misunderstandings of economics, data and policy. The inevitable conclusion that follows from a clearer understanding of all these factors is that retirement is still affordable if we have the will to make it so.
Let us start with the policy argument. Public policy should indeed make it easier for people to work longer, not because a greater labour supply translates into faster growth, but because eliminating obstacles to working longer will allow some older workers to live happier, more fulfilled lives.
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