Khaberni - Social insurance and welfare expert Musa Al-Subaihi warned of the broad implications that could result from the move to completely cancel early retirement in Jordan, stating that this option does not offer a radical solution to the financial crisis but rather shifts it to more complex social and economic levels.
Al-Subaihi explained that early retirement, despite the pressures it places on the financial position of the Social Security Corporation, also represents a tool of social stability that cannot be overlooked, emphasizing that it should be addressed through balanced solutions, not by completely eliminating it.
He pointed out in a post on “Facebook” that abolishing this path would create a new segment of Jordanians outside the protection system, especially those over fifty who have lost their jobs, as they would find themselves without income or job opportunities, putting them in a circle of social risk.
He noted that one of the expected implications is the transformation of unemployment insurance from a temporary support tool to a long-term income source, which could deplete its resources and threaten its sustainability, in addition to negatively affecting the investments of social insurance funds which serve as an important lever for the national economy.
Al-Subaihi also pointed to a negative reflection on occupational safety, especially in hazardous professions, by forcing workers to continue despite their declining physical abilities, which would increase the likelihood of injuries and deaths.
He confirmed that the retirement pension represents the primary line of defense for families, and that its absence could push more families towards poverty, transferring the financial burden to the state treasury through support programs and assistance.
He also predicted an increase in the demand for disability retirement due to some opting for this after the closure of the early retirement option, which would put additional pressure on the medical committees and increase costs.
He added that abolishing this option could weaken the participants' trust in the insurance system and encourage evasion, in addition to a decline in voluntary participation, especially among Jordanians working abroad, which would negatively reflect on the institution's revenues.
He warned that reducing the number of retirees or their pensions would directly reflect on the purchasing power in the local market, which could lead to a noticeable economic slowdown.
Conclusion (Solution Corner):
Al-Subaihi called for stopping the forcible referral to early retirement, especially in the public sector, and developing incentives to encourage continued work, considering that this approach is sufficient to rebalance the insurance system without the need for radical decisions that might have adverse effects.
