More & More Americans Having to Work Past Age 70
July 18, 2017
Nearly one-fifth (19%) of Americans age 70 to 74 were still in the workforce as of the end of June, according to the latest jobs report from the Labor Department on July 7. Some are working because they are healthy and enjoy their work. Most, however, are still working because they haven’t saved nearly enough for retirement.
Another part of the problem is that the world’s richest countries need to significantly hike their retirement ages in the years ahead in order to prevent pension systems from collapsing, according to the World Economic Forum (WEF) which studies such data.
Working until at least 70 should become the norm by 2050, or possibly much earlier, the WEF predicts in its latest report. The average retirement age in developed countries is currently 65 for men and 63 for women.
Another part of the problem (and in many ways it’s a good thing) is that people are living longer than ever, but the average retirement age has not kept pace for decades. Pension funds have been unable to keep pace.
It's a trend that will only accelerate: Babies born today in many advanced economies can expect to live to 100 or longer.
The main problem regarding retiring at the earliest age to receive full benefits (Social Security, etc. in the US) is the fact that most workers approaching retirement in developed nations have not saved nearly enough to have the lifestyle they had hoped for in retirement.
Americans face the largest gap between what they’ll need and what they’ve saved to retire: the collective shortfall hit $28 trillion in 2015 and will almost quintuple to at least $137 trillion by 2050 – if major changes aren’t enacted.
It’s the crisis that won’t go away and will only get worse. That’s what we’ll focus on today.