A USA Today editorial argues for raising retirement ages. I see this as necessary and inevitable. Politicians could do us all a favor by acting sooner to give people more time to plan for this inevitability.
So it's notable that inklings of a bipartisan consensus are forming about one highly contentious issue — the age at which workers should be able to collect Social Security benefits.
House Minority Leader John Boehner, R-Ohio, supports gradually raising the retirement age for full benefits to 70 from the current 66. A number of key Democrats, most notably House Majority Leader Steny Hoyer, D-Md., have miffed liberals in their party by saying that some unspecified increase should be on the table.
Since people are living longer they are going to have to work longer. This is already happening. In spite of a huge dip in overall employment the labor force participation rates for 55 and over are rising.
The approaching sovereign debt crisis will force an acceleration in the rise of labor force participation for those in their 60s and 70s. If you want to avoid this for yourself you've either got to get rich or lower your living standard so low you can afford to save more.
|Share |||By Randall Parker at 2010 December 17 12:12 AM Economics Entitlements|