In this time, there was a huge cultural shift from rural farm to city factory. Furthermore, this changed our society from people directly providing for themselves to individuals work for a wage. However, most individuals were unable to save for a retirement and worked until they died. With this said, there were very few people who lived to 65 years old. Then the industrial societies developed and used the “retirement principle” according to Novak (268). The retirement principle proposed, people should retire at a fixed age regardless of physical or mental …show more content…
The Germans started a national pension plan in Bismarck. The fixed retirement age at first, was the age of 70 years old. However, later on the Germans then lowered it to 65 years old. The standard of retirement was established after that. In the United States, the retirement principle was also used. The US valued the stronger, faster, and younger workers so it allowed the companies to go without having to fire them (Novak, 269). The employers and the unions supported the retirement age since, they could retire the older workers and hire younger and cheaper ones for the company. At this time, the companies had wanted to speed up the production and get more work out of the employees. The unions agreed with the companies if, the workers could have a shorter work week, in exchange for the faster work speed. This faster speed would speed up the production which the companies had wanted. As a result, the older workers retired. The union also pushed for seniority in the companies around this time. This would give the older workers some job security since, the company would value the older workers would were hired first. The retirement principle allowed the companies to offer the seniority rights only up until the retirement age. Therefore, the companies could get rid of the slower and higher paid workers. But, it would allow the older workers to retire. But, many workers still did not retire due to