The feds don't want to cash any more of the $2.9 trillion in bonds held by the SSA than they have to. They'll try to raise the retirement age again to avoid paying back what was borrowed. Raising the retirement age is an efficient way to cut benefits. A two year raise to 69 would cut benefits for those not already collecting by about 13%.
4% at 70 sounds about right, maybe even higher than I see in the FO. I'd say a good half to slightly over barely make it to 62 in their work career.
Either they've got so many health problems they take a disability/retirement dual claim. Or even more depressing, their work earnings are so low they don't even hit the annual earnings cap for early retirement.
It's just more "me and everyone I know doesn't have a problem waiting until 70, why should they?" attitudes.
Just because "life expectancy" has gone up, it does not mean that the quality of one's life has gone up with it. people are living longer, yes, but many of those who would have died if not for modern medical procedures may not be well, and not be healthy enough to continue work comfortably (and maybe not unhealthy enough for disability). Does anyone really want to work until they drop dead? This program is running g out of money and I say that he government subsidize it, and preserve it as they do with welfare, grants, and payments to other countries for doing nothing.
The major effect of raising the normal retirement age (NRA) is to cut benefits for everyone. The increase in life expectancy is sometimes given as a reason. However, the life expectancy increase has been much higher for people with high incomes (who already had a higher life expectancy) than people with low incomes. In fact, comparing estimated life expectancy at age 50 for men born in 1930 and those born in 1960 shows that it has decreased by 0.5 years for the lowest income quintile but increased by 7.1 years for the highest quintile, while for women the drop is 4 years for the lowest quintile and the increase 5.7 years for the highest. So raising the NRA would cut benefits for low-income people whose life expectancy has actually decreased.
(Numbers from "National Academies of Sciences, Engineering, and Medicine. 2015. The Growing Gap in Life Expectancy by Income: Implications for Federal Programs and Policy Responses. Washington, DC: The National Academies Press. https://doi.org/10.17226/19015.")
I am 53 years old. I have never expected to have early retirement at 62. Always figured they would kick it up to at least 65 with Medicare at 70. It is a Ponzi scheme, and by luck of birth I got in on it at the wrong end.
Exactly @3:01 The number of retirements isn't based on what people believe their remaining life span is but rather their ability to continue to work. My father retired at 76 because he needed surgery. My mother retired at 65 but only because she powered through the last two years to reach retirement age and get in the two years she needed to collect full retirement benefits from her employer. Very unlikely she could have pushed on to age 67 because she was struggling as it was and had to use leave that she had counted on getting as a lump sum check when she retired.
People in their 40s and 50s often think they will work forever. They don't realize that, even with good medical care, good genes, and "taking care of oneself", a person's health can change in an instant at any age. Cancer, cardiac problems, diabetes, arthritis, etc., don't just strike the "unworthy". I was always healthy, no risk factors for disease, and powered through minor illness and pain. My first brush with mortality was in my mid-50s, and my health has slowly declined from there. And many people who don't work "desk jobs" simply wear their body out with hard physical labor by their 50s.
Given the statistics cited by @9:00, for those who are advocating raising the retirement age for others, it is easier if they don't have a social conscience.
I am 68 and continue to work full time at representing people in claims. I went to my class reunion and most were retired but they worked for companies whereas I have my own business. This may make a difference because I will not collect until 70.
10 comments:
Makes sense to me to raise the age that one can first claim benefits. Life expectancy has gone up quite a bit since 1937 when it was passed.
The feds don't want to cash any more of the $2.9 trillion in bonds held by the SSA than they have to. They'll try to raise the retirement age again to avoid paying back what was borrowed. Raising the retirement age is an efficient way to cut benefits. A two year raise to 69 would cut benefits for those not already collecting by about 13%.
4% at 70 sounds about right, maybe even higher than I see in the FO. I'd say a good half to slightly over barely make it to 62 in their work career.
Either they've got so many health problems they take a disability/retirement dual claim. Or even more depressing, their work earnings are so low they don't even hit the annual earnings cap for early retirement.
It's just more "me and everyone I know doesn't have a problem waiting until 70, why should they?" attitudes.
Just because "life expectancy" has gone up, it does not mean that the quality of one's life has gone up with it. people are living longer, yes, but many of those who would have died if not for modern medical procedures may not be well, and not be healthy enough to continue work comfortably (and maybe not unhealthy enough for disability). Does anyone really want to work until they drop dead?
This program is running g out of money and I say that he government subsidize it, and preserve it as they do with welfare, grants, and payments to other countries for doing nothing.
The major effect of raising the normal retirement age (NRA) is to cut benefits for everyone. The increase in life expectancy is sometimes given as a reason. However, the life expectancy increase has been much higher for people with high incomes (who already had a higher life expectancy) than people with low incomes. In fact, comparing estimated life expectancy at age 50 for men born in 1930 and those born in 1960 shows that it has decreased by 0.5 years for the lowest income quintile but increased by 7.1 years for the highest quintile, while for women the drop is 4 years for the lowest quintile and the increase 5.7 years for the highest. So raising the NRA would cut benefits for low-income people whose life expectancy has actually decreased.
(Numbers from "National Academies of Sciences, Engineering, and Medicine. 2015. The Growing Gap in Life Expectancy by Income: Implications for Federal Programs and Policy Responses. Washington, DC: The National Academies Press. https://doi.org/10.17226/19015.")
I am 53 years old. I have never expected to have early retirement at 62. Always figured they would kick it up to at least 65 with Medicare at 70. It is a Ponzi scheme, and by luck of birth I got in on it at the wrong end.
Exactly @3:01
The number of retirements isn't based on what people believe their remaining life span is but rather their ability to continue to work. My father retired at 76 because he needed surgery. My mother retired at 65 but only because she powered through the last two years to reach retirement age and get in the two years she needed to collect full retirement benefits from her employer. Very unlikely she could have pushed on to age 67 because she was struggling as it was and had to use leave that she had counted on getting as a lump sum check when she retired.
People in their 40s and 50s often think they will work forever. They don't realize that, even with good medical care, good genes, and "taking care of oneself", a person's health can change in an instant at any age. Cancer, cardiac problems, diabetes, arthritis, etc., don't just strike the "unworthy". I was always healthy, no risk factors for disease, and powered through minor illness and pain. My first brush with mortality was in my mid-50s, and my health has slowly declined from there. And many people who don't work "desk jobs" simply wear their body out with hard physical labor by their 50s.
Given the statistics cited by @9:00, for those who are advocating raising the retirement age for others, it is easier if they don't have a social conscience.
I am 68 and continue to work full time at representing people in claims. I went to my class reunion and most were retired but they worked for companies whereas I have my own business. This may make a difference because I will not collect until 70.
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