signalmankenneth
Verified User
Work till you drop, hell raise the retirement age to 80?!!
With Americans living longer and spending more years in retirement, the nation's changing demographics are "putting the U.S. retirement system under immense strain," according to BlackRock CEO Larry Fink in his annual shareholder letter.
One way to fix it, he suggests, is for Americans to work longer before they head into retirement.
"No one should have to work longer than they want to. But I do think it's a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire," Fink wrote in his 2024 letter, which largely focuses on the retirement crisis facing the U.S. and other nations as their populations age.
Fink's suggestions about addressing the nation's retirement crisis come amid a debate about the future of Social Security, which will face a funding shortfall in less than a decade. Some Republican lawmakers have proposed raising the retirement age for claiming Social Security benefits, arguing, like Fink, that because Americans are living longer, they should work longer, too.
But that ignores the reality of aging in the workplace, with the AARP finding in a 2022 survey that the majority of workers over 50 say they face ageism at work. And because of ill health or an unexpected job loss, many older Americans stop working before they planned to. In fact, the median age of retirement in the U.S. is 62 — even lower than the "traditional" retirement age of 65.
Fink is right in saying that the retirement system isn't working for most households, noted retirement expert and New School of Research professor Teresa Ghilarducci told CBS MoneyWatch. But his assessment that people should work longer misses the mark, she added.
"After a 40-year-old experiment of a voluntary, do-it-yourself-based pension system, half of workers have no easy way to save for retirement," she said. "And in rich nations, why isn't age 65 a good target for most workers to stop working for someone else?"
She added, "Working longer won't get us out of this. Most people don't retire when they want to, anyway."
https://finance.yahoo.com/news/americas-retirement-age-65-crazy-222229926.html
With Americans living longer and spending more years in retirement, the nation's changing demographics are "putting the U.S. retirement system under immense strain," according to BlackRock CEO Larry Fink in his annual shareholder letter.
One way to fix it, he suggests, is for Americans to work longer before they head into retirement.
"No one should have to work longer than they want to. But I do think it's a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire," Fink wrote in his 2024 letter, which largely focuses on the retirement crisis facing the U.S. and other nations as their populations age.
Fink's suggestions about addressing the nation's retirement crisis come amid a debate about the future of Social Security, which will face a funding shortfall in less than a decade. Some Republican lawmakers have proposed raising the retirement age for claiming Social Security benefits, arguing, like Fink, that because Americans are living longer, they should work longer, too.
But that ignores the reality of aging in the workplace, with the AARP finding in a 2022 survey that the majority of workers over 50 say they face ageism at work. And because of ill health or an unexpected job loss, many older Americans stop working before they planned to. In fact, the median age of retirement in the U.S. is 62 — even lower than the "traditional" retirement age of 65.
Fink is right in saying that the retirement system isn't working for most households, noted retirement expert and New School of Research professor Teresa Ghilarducci told CBS MoneyWatch. But his assessment that people should work longer misses the mark, she added.
"After a 40-year-old experiment of a voluntary, do-it-yourself-based pension system, half of workers have no easy way to save for retirement," she said. "And in rich nations, why isn't age 65 a good target for most workers to stop working for someone else?"
She added, "Working longer won't get us out of this. Most people don't retire when they want to, anyway."
https://finance.yahoo.com/news/americas-retirement-age-65-crazy-222229926.html
