As the economic factors get better, people live more extended lives, and the labor force changes, it seems that the retirement age is changing in the United States. The spotlight on retirement age has grown as we near the year 2024, and most of the expectations are on a raise in the retirement age. Below is the current situation, expected change, and retirement age on average in the US.
Current Retirement Age in the US
Current US Full Retirement Age: Today, the full retirement age for workers in the US depends on their birth year, and workers born after 1960 can now retire at 67. The important thing to note is that workers who take early retirement at 62 have reduced levels of retirement.
Many workers retire at 65 due to their eligibility for Medicare. Increasingly, financial considerations and long life expectancies motivate workers to work well beyond this early age of retirement.
Retirement Age Hike to Be Witnessed in 2024
There have been so many discussions about the retirement age increase due to overpressure on Social Security funds and because of longer lives after retirement. It is suggested that the retirement age will be raised to 68 or 70 years a few decades later.
As of now, no legislation has passed to this effect; however, notions regarding retirement age hike are gaining popularity, considering the economic implications of an aging population.
Average Retirement Age in the US
Average retirement age among Americans is 64 years. Of course, this is a broad average that depends on financial preparedness, health, and personal preference. Soon after primary retirement, most engage in part-time work or less strenuous jobs. Two key reasons for retirement being high are increased cost of living and the fear of depletion of savings.
Conclusion
The fact that retirement age is going up to 2024 shows general macroscale structural changes occurring in the US. Average retirement age remains at 64 years old, but there are many postponing retirement and working due to more stringent life expectancy and financial requirements. It seems the trend is forging the future retirement landscape of the US.
