Raising the retirement age to 70 could save Social Security for us all

It is time to raise the retirement age for Social Security in the United States to 70 years old, with no option for early retirement, despite the anticipated backlash, vocal objections, and potential threats.
The United States should abolish early retirement with reduced benefits and raise the retirement age for Social Security to 70 for a number of important reasons. About half of beneficiaries currently choose to retire before reaching full retirement age.
The first concern is that by 2035, Social Security is expected to be bankrupt.The Social Security Board of Trustees concluded in its 2022 annual report that the program will not be able to meet its financial obligations by 2035 if no changes are made.
The rising life expectancy of Americans in recent years is a second factor that supports raising the retirement age to 70.
When Social Security was created in 1935, the age at which a person could begin receiving full benefits was set at 65, and the average life expectancy at birth for a male and a female in the United States was approximately 60 and 64 years, respectively.Male and female life expectancies at birth have increased by approximately 14 years to 73 and 79 years, respectively, nearly nine decades later.
In addition, men’s and women’s life expectancies in the United States have both significantly increased over time.In 1935, men and women had life expectancies of approximately 12 and 14 years, respectively, at the age of 65.At age 70 in 2021, men and women had life expectancies of approximately 14 and 16 years, respectively.
Source:The Centers for Disease Control
To put it another way, raising the retirement age for full Social Security benefits to 70 years would still provide men and women with more years in retirement than was anticipated when the program was established in 1935. This is because life expectancies have increased as people get older.In the United States, men and women who reach age 70 can anticipate living to 84 and 86, respectively, and those averages are expected to rise.
The early retirement option at the age of 62 with reduced benefits ought to be discontinued in addition to raising the retirement age for Social Security to 70.
More than half of people who apply for Social Security retirement decide to start receiving benefits before they reach full retirement age.Social Security benefits are reduced for the rest of a person’s life after they make the decision to take early retirement.
Many early retirees who chose to receive reduced benefits end up with insufficient funds, which puts them in difficult financial situations later in life.Men and women would have more time to save for their retirement if the retirement age were raised to 70 without the option to retire early, and they would also receive full benefits in retirement rather than reduced ones.
Additionally, working longer hours has positive health effects.People are encouraged to maintain their social engagement and physical activity levels by remaining employed.
Due to the fact that life expectancies vary depending on socioeconomic status, some have argued that raising the retirement age for Social Security would be unfair to some Americans.In a nutshell, they emphasize the fact that people on the lower end of the socioeconomic spectrum, such as janitors in Oklahoma, have significantly shorter life expectancies at the age of 65 than people on the upper end, such as lawyers in New York.However, these disparities in life expectancy based on socioeconomic status existed prior to the establishment of Social Security.
Additionally, men and women are treated equally when it comes to the retirement age set by Social Security.The age at which both sexes are eligible for full benefits has remained the same, despite the fact that women were anticipated to live several years longer than men at 65.
The retirement age set by Social Security also does not distinguish between major racial and ethnic groups.The eligibility age for Social Security benefits has always been the same for all of America’s major social groups, despite the fact that there are acknowledged significant differences in their life expectancies.
A role model for other nations would be raised retirement age for Social Security to 70.Countries around the world are facing the challenge of having fewer people in the workforce per retired person and rising costs for the growing number of people receiving retirement benefits as a result of the population’s increasing longevity and demographic aging.
In countries where the statutory retirement age is 65 years or less, such as France, Japan, Russia, and Sweden, a retirement age of 70 for both men and women would increase the size of the labor force.The number of retired people, the number of years spent in retirement, and the cost of government retirement programs all decrease as a result of raising the retirement age to 70.
Reduced benefits and an increase in employment taxes are two options for addressing the anticipated insolvency of Social Security if the retirement age is not raised.However, they are likely to be less palatable than gradually raising the retirement age to 70 years old.
Although some Republicans in Congress have proposed cutting benefits, this would not only be highly unpopular with the general public in the United States but would also cause financial difficulties for many retirees.Similarly, the business community, workers, and congressional Republicans are unlikely to approve of raising employment taxes for Social Security.
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It ought to likewise be noticed that the Government managed retirement age has been raised slowly over the new past.For those who were born after 1960, for instance, the current age at which full benefits from Social Security can be claimed is 67 years old.
Before long, administrators ought to recollect that an expansion in the retirement age to 70 with no exit from any 9 to 5 work choice would address Government managed retirement’s normal bankruptcy, make up for expanded life span and extend the size of the workforce.It would also give retirees more time to save for retirement, keep equity between generations intact, and increase their monthly benefits when they get older.
Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division, and the author of numerous publications on population issues, the most recent of which is titled “Births, Deaths, Migrations, and Other Important Population Matters.”

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