2010 December 17 Friday
For Raising Retirement Ages

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


Comments
SF said at December 17, 2010 3:26 PM:

It's 67 for anyone under 50 now. (http://www.socialsecurity.gov/retire2/agereduction.htm)
But wouldn't it be more cost effective and generally more fair to raise the minimum age, which is still 62?

bracketcreep said at December 17, 2010 6:30 PM:

I can't see any practical flaws in raising the retirement age. I'm sure employers will fall over themselves to hire and/or retain the over-50 workers that they are currently ignoring and/or forcing into early retirement. And 99% if the over-sixty employees will have zero physical or cognitive problems.

Yup, great idea. What could go wrong?

dchamil said at December 18, 2010 7:26 AM:

Raise the retirement age -- but for WHAT AGE BRACKET? It makes a great deal of difference whether we are talking about 30-year-olds or 50-year-olds.


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