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The government is going to raise the minimum eligibility age to 70+. It is only a matter of time.
I have been studying the issue online and countries all over the world are rising the age of their version of Social Security. The USA will follow.
This is happening in an era where most people have little or no retirement savings. They live paycheck to paycheck. Good jobs are going away and being replaced by low wage service sector and retail jobs.
Assuming the Working Class person today can retire at age 62 and get $1300 a month in Social Security, they can at least survive (barely) on an income of most SS Benefits. (And do OK if they are married and both husband and wife are collecting benefits. But what will happen in the future?
In the future people will have to wait until they are over 70 to collect SS. If their body or mind gives out before that age or they are forced out by their employer and can't get a new job due to age discrimination, what will they do?
(I estimated I would need to have saved $500,000 more in my retirement accounts if I did not have Social Security income. Assumes a monthly 4% withdrawal from the the $500k)
70 will not fly for decades in my opinion . one of the bills being proposed has 69 as a full retirement age but it is ramping up to that level over 48 years .
the idea being that in 48 years you would likely enjoy the same amount of years healthy in retirement as one does now based on average life expectancy .
the bill calls for the above , a slight increase in pay roll taxes and a raising of the cap on earnings .
So much doom and gloom. Even if FRA moves to 69, then early filing will still likely stay at 62, just with an even more reduced benefit, not zero. Delayed filing credits will either be reduced or eliminated. That is where the "savings" will come from. The OP is asking a non answerable question while stating as facts things that have not happened yet. Haven't you been in touch with the news the last 6 months? Trump is bringing good paying production and infrastructure jobs to a state near you! SS will be saved by all the increased workers making good wages. The answer to your hypothetical question is a hypothetical Trump should force all employers to provide a mandatory pension based on earnings. Problem solved.
Assuming the Working Class person today can retire at age 62 and get $1300 a month in Social Security,
they can at least survive (barely) on an income of most SS Benefits.
(And do OK if they are married and both husband and wife are collecting benefits.
The unstated implication is that everyone should have SOMETHING set aside by 65.
For most that would be a fully paid off home in decent enough condition to either last them for the duration
or which can be sold for the cash to buy something else - and often for less.
Being "working class" shouldn't affect this paradigm beyond the FMV of the property (vs a wealthier household).
Quote:
(I estimated I would need to have saved $500,000 more in my retirement accounts
if I did not have Social Security income.
Or taper down the flame under the bubbling porridge pot of your budget.
Quote:
But what will happen in the future?
...an era where most (younger) people have little or no retirement savings.
They live paycheck to paycheck.
About half of them (maybe more) will inherit one of those family homes mentioned; or share in one.
The rest? That is a sad story that few want to face the reality of.
Either the underlying cause or the hard choices needed for any real solution.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,553 posts, read 81,085,957 times
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The last 3 retirees here have been over 70, I don't see why this is a problem for office workers making over $100k with a pension that grows with every additional year they work, while adding additional funds to their 401k and keeping their employer's medical plan. At 64 I enjoy my work and expect to stay here until 70, though I could go at 67 for full SS.
Yes, but you are not an average American. You are one of those 5% east or west coast high COL area people that distort the true demographics of average down trodden Americans with no opportunities, dontcha know.
TIC.
Currently the only country in the world that has 70 for retirement age is the Czech Republic. And that is for people born after 1977. https://en.wikipedia.org/wiki/Retirement_age
Last edited by volosong; 01-13-2017 at 04:34 PM..
Reason: fixed country name typo
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