A boss of one of the biggest investment companies in the world (along with several politicians) thinks the retirement age should go up! To them age 65 is too low since folks are living much longer than Social Security creators originally predicted. Will raising the retirement age fix the problem?
Here’s Five Fast Facts on the Fight over Raising the Retirement Age:
- 🎉Boomer Birthdays - Over the next few years, the number of folks hitting the big 6-5 is skyrocketing. Get this: we're talking over 11,200 Americans blowing out candles every single day! That's a whopping 4.1 million birthdays a year! 🎂 And this birthday bonanza is set to keep rolling until 2027. Time to stock up on cake! 🍰
- 🇺🇸Why Worry?!?! - Wall Street folks are worried that Social Security will run out of money. They look at how one in six people will be OVER age 65 by 2050 (up from only one in 11 in 2019.) Plus, about half of people aged 55 to 65 say they have ZERO dollars saved in personal retirement accounts. 😱
- 😠Not Wanting Changes!!! - Opponents of changes think forcing people to work longer before they can retire is like asking a marathon runner to sprint an extra mile at the end of the race—it's tough and seems unfair! Plus, imagine your grandpa trying to learn TikTok dances just to keep his job.🕺👴It's a recipe for comedy, but not so great in real life!
- 🤔Here’s how much it impacts your paycheck - This retirement crisis is impacting everyone because there’s less workers paying into the system and more people depending on it with each passing day. Back in 1955, we had almost 9 workers for every person riding on the retirement cruise. But by 2013, that number DROPPED to about only 3 workers per retiree.
- 👀What does this look like moving forward? - Experts have funny ideas to fix Social Security: some say make people work longer but give them more money if they can't, others want a one-size-fits-all benefit like Australia. Another idea is to give rich folks less money when they retire. They also think bosses should be nicer to oldies so they stick around longer.
🔥Bottom line: Social Security and retirement age is going to change eventually but raising the age only lowers the cost to Social Security by 7%...that’s not making a big difference. Could this be something that is changed now or in the future? Now that’s the question…
What needs to change to make retirement better for America’s Paychecks?
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