Should Bahrain raise retirement age? Shura Deputy Chairman sparks debate

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

With people living longer and leading healthier lives, shouldn’t they also work a bit longer? Their valuable experience and skills—shouldn’t the country benefit from those a bit longer, rather than sending them off the grid?

An intriguing question, isn’t it? However, when a person like Jamal Fakhro, who holds one of the top positions in the Kingdom’s bicameral legislature, throws such a question into the spotlight, it is worth a discussion.

Sparking a new debate, he wrote on his handle on platform X: “With life expectancy surpassing 80 years in most, if not all, GCC countries, it is time to reconsider the retirement age.

Many European countries have already raised their retirement age to over 62 years, and in some, like Germany, it has even reached 67 years.” It’s worth noting that the life expectancy in Bahrain and other Gulf Cooperation Council (GCC) countries is notably high.

As of recent data, Bahrain’s life expectancy is approximately 78.6 years. Other GCC countries also have high life expectancies: Qatar at 80.2 years, the United Arab Emirates at 78.2 years, Kuwait at 78.5 years, Saudi Arabia at 75.8 years, and Oman at 77.4 years.

These figures reflect the significant advancements in healthcare and living standards across the region.

So, the pressing question is: what actions should be taken?

Proponents highlight Bahrain’s demographic profile, economic conditions, and social dynamics, arguing that the benefits are numerous.

Experts believe that as life expectancy increases, raising the retirement age can help ensure the sustainability of pension systems by reducing the number of years pensions are paid out.

Older individuals bring valuable experience and skills to the workforce, contributing positively to the economy.

An older workforce also means a lower dependency ratio, easing the financial burden on the working-age population.

Additionally, extending the working years allows individuals to accumulate more savings, leading to greater financial security in retirement.

However, not everyone is on board with this idea. Hamad AlDoy, a member of the Council of Representatives, came forward criticizing Fakhro for the tweet.

Raise pensions, not age: Al-Doy

Rejecting the idea, he argues that the focus should ideally be on enhancing the rights and conditions of retirees, rather than making them work more.

He argues that it’s now time to raise their pensions, stating that pensioners currently receive a paltry amount. Al-Doy noted it is concerning to know that a Bahraini pensioner now receives only 300 dinars after contributing a lifetime of service to the Kingdom.

Restore bonus: Jameel Hassan

Jameel Mulla Hassan, another parliament member, has a different take on the issue. He calls on Fakhro to instead work towards restoring the 3% bonus for pensioners, considering the high oil prices. Hassan also emphasizes the importance of offering quality healthcare services to pensioners.

He proposes enhancing the quality of life for retirees across the Gulf by reducing or eliminating various government fees they face and providing them with a broader selection of healthcare providers.

Impact on society: Dr AlBuainain

In his response, Dr. Ahmed AlBuainain pointed out that such a move, like raising the pension age, should be done only after considering several crucial factors, including the quality of work life, the level of health services, and the needs of the labour market, as everything is interconnected.

He warns: “Ultimately, it will bring about a significant impact on society, whether positive or negative.”

Comprehensive analysis must

Experts say any decision to raise the retirement age in Bahrain should be based on a comprehensive analysis of these factors.

It may be beneficial to implement gradual changes and provide support systems, such as retraining programs and healthcare services, to ease the transition for the aging workforce.