Retirement Age For Regular People
Retirement is usually the age people reach when they either stop working or doing part-time work. Semi-retirement is when they choose to take on a part-time job. Some people decide to retire when they have reached a certain age; they can no longer work or have acquired enough pension benefits from the government or their own personal savings.
Thanks to modern medicine, people are generally living longer. In fact, there are more and more ‘old’ people compared to people who work, making state pensions harder to fund. In Europe, there is one person over 65 for every four people of working age. And this number is expected to be cut in half by 2060.
Nowadays most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers and/or the state. In many poorer countries, support for the old is still mainly provided through the family. Today, retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right. In many western countries this right is mentioned in national constitutions.
The normal retirement age in the United States is usually 65. However, the Office of Social Security will allow someone at the age of 62 to retire early. However, if someone chooses to retire early, the pension benefits will be reduced. If retirement takes place at the required age of 65, pension benefits will not be reduced. Full benefits take place when the retiree reaches the age of 66.
Generally, the retirement age globally is between the ages of 55 and 70. Some countries have retirement age requirements different for a male and female.
The United States government calculates its retirement age requirement by the date you were born. If you were born anytime after 1960, your retirement age would be 67, for instance. If you were born between 1955 and 1959, full retirement age would be 66.
To solve the problem of fewer young people contributing to the pensions of more old people, many European countries are thinking of increasing the normal retirement age. In fact, the South African Press Association reports that Britain will scrap a rule under which people can be forced to retire at the age of 65. The move, which comes into effect from October 2011, is expected to mean more people will work for longer. This will boost Britain’s strained public finances as people will pay more tax and postpone claiming their state pension.
When you look at things as a person who is concerned about the situation of government finances and the implications of population age going forward, it's not Old Age Security. It's things like long-term care needs — those are the really scary things that could bust the budget.
Things are really changing. And the thing you have to remember is: tomorrow's old are not going to be the same as today's old.
When we are looking at people who are retiring now, and we're saying, 'What do we learn from people who are retiring now?' we learn very little, because those people who are retiring now are in such a different economic circumstance than the people who are going to be retiring when all these changes take place.
Billionaire Carlos Slim said that boosting the retirement age to 70 would help to prop up the world’s struggling economies. He argued that the current retirement age was put in place during a time when the typical employee worked a more physical job and people died at an earlier age.
“We live in the knowledge society, so knowledge and experience should be valued,” he said at the Geneva telecommunications conference, according to Forbes. “This is why a person’s work life could be increased.”
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