French President Emmanuel Macron recently raised the retirement age from 62 to 64 (with shenanigans) and that’s not sitting well with 2/3rds of his country. But he isn’t alone in this. Some US politicians are pushing the idea of raising our full retirement eligibility age, too.
Here’s Five Fast Facts on an Increased Retirement Age:
- 👴 Running Numbers - In 2027, the age for retiring with full Social Security Benefits is already raising to 67, thanks to legislation from 1983. Medicare benefits still begin in full at 65.
- ↗️ Incoming! - At the current trajectory, Social Security will only be able to pay 77% in benefits starting in 2035. Medicare is in worse shape. The coffers are projected to run dry in 2028. Elected officials are looking for ways to keep the cash flowing.
- 🐘 Study Hall - The Republican Study Committee is currently making a push to raise the retirement age to 70 for anyone born in or after 1978. That includes both Social Security and Medicare.
- 👵 Older Aged - Proponents say an age increase is absolutely necessary, pointing out that the average life expectancy has increased by 14 years since Social Security was introduced in 1935 when the 65 age target was set.
- 💣 Bad Business - Critics say raising the age would be disastrous for the economy, in part because poverty is currently on the rise and a longer life expectancy doesn’t necessarily correlate with being able to work at an older age.
🔥Bottom line: No matter what side of the debate you’re on, it’s going to be very difficult for America’s aging population in the coming decades. The interesting thing is that the burden is being pushed onto hard-working people by people who won’t have to worry about their own retirement. Regardless, a solution needs to be found and fast.
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