Why do Retirees Continue to Work even after reaching the Required Retirement Age?

The discussion of the draft reforms to the Social Security Fund (CSS) has caused many Panamanians to question those who decide to continue working after reaching retirement age in order to occupy positions that could be used by young people who have not had the opportunity to enter the labor market.  However, there are various economic, social and personal factors that keep these people in their jobs. The search for financial stability is one of them, since pensions, in many cases, are not enough to cover the high cost of living, a situation that forces them to continue in the labor field in order not to deteriorate their lifestyle. The average pension for a retiree could be around $220 per half month, less insurance and loan deductions, that is, between $75 and $100 per week. 

A retiree can earn between 150 and 160 dollars a month, which are used for food, medicine and the payment of basic services such as electricity, water and garbage.  However, the price of the basic family basket alone doubles this amount, which shows that pensions do not cover all their needs.  The desire to remain active and functional is another reason for this decision. Retirees prefer to continue working rather than retire in order to feel useful and not “trapped within four walls.”  The current retirement age in Panama is 57 for women and 62 for men, relatively young and working-ages if the person does not suffer from any type of illness or serious physical condition, therefore, it is normal for retirees to feel that they can still continue contributing to economic development.

Data from the Social Security Fund (CSS) reveal that approximately 1,645 people enter the pensioner and retiree system every month. Although current retirement age for women is 57 years old and for men 62, the reforms to the entity contemplate an increase of 3 years for both sexes, leaving women at 60 and men at 65.