Final answer:
Employers justify imposing a retirement age to ensure the workforce acquires new technological skills, plan financially for the organization and the employees, and because benefits like Social Security facilitate this transition. The concept of retirement has evolved, and legal protections like the ADEA ensure that workers are not forced to retire at a certain age.
Step-by-step explanation:
Employers can justify imposing a retirement age for several reasons. One reason is to make way for younger employees with updated skills, particularly in fields where technological advances require newer skill sets that younger workers are more likely to have. Secondly, it is believed that retirement benefits such as Social Security, which was designed to provide economic protection for workers who can no longer maintain intense physical activity as they age, allow for a smooth transition out of the workforce. Finally, imposing a retirement age can also be part of financial planning for both the organization and its employees, ensuring that workforce demographics align with the company's long-term goals while also giving employees a clear timeframe for their own financial retirement planning.
The concept of retirement is a modern one, with Social Security offering retirement benefits after a minimum number of years of work. Social Security has faced financial challenges due to demographic shifts, notably the aging Boomer cohort receiving benefits and fewer workers paying into the system. To address potential insolvency, measures such as increasing the retirement age have been considered, affecting when benefits can be claimed.It's important to note, however, that thanks to amendments to the Age Discrimination in Employment Act (ADEA), U.S. workers are no longer compelled to retire at a specific age, highlighting the balance between economic necessity, legal protections, and the social realities of an aging workforce.