A section of Rwanda Members of Parliament want government to lower the retirement age “to give a chance to unemployed Rwandan youth, as the country plans to amend its labour law.
MPs want the retirement age reduced to 55 from the current 65, terming the current settings “unfair to fresh graduates”- the East African reports
According to the National Institute of Statistics of Rwanda, the general unemployment rate in Rwanda is at 13.2%,
“Young people are graduating at 21 and their chances of securing jobs remain minimal,” said Member of Parliament Théobald Mporanyi.
According to the lawmakers, people with more than 30 years in employment should be retired. The Ministry of Labour termed the recommendation “good” but remained very cautious on making a commitment.
Unemployment among Rwandans who completed upper secondary is the highest at 23%, followed by the unemployment among graduates of tertiary education with 18%.
On another side, the rate of unemployment among uneducated is 10% – the lowest.
The current retirement age in the country was increased to 65 from 55 in the 2009 labour law amendments, in a move that analysts said aimed at relieving the country’s pension scheme from a big number of beneficiaries and improving the fund’s long-term solvency.
Considering this experience, analysts say the request to lower the retirement age goes against economic theories, which suggest that lowering the retirement age is very risky for countries with increasing life expectancy — a category Rwanda falls under.
A 2017 Population Projections report by the National Institute of Statistics of Rwanda put the life expectancy at birth of Rwandans at 66.6 years.