At what age should a person retire? What level of activity is reasonable for society to expect of retired individuals? Given the changing demographics of the United States, should retirement be discontinued? Why or why not?
At what age should a person retire?
The decision to retire, and at what age is not one to be taken lightly. Each individual has to make this decision based on a number of factors. In an article, Martin, R, Beach, S (2012) reported that retirement is a decision that the so-called, “baby boomer,” will have to make soon. The baby boomers are those individuals that were born during the years 1946 and 1964, and would reach age 62 by 2008. They reminded us that this is the stage that this group can become eligible for Social Security retirement benefits. In the paper, the authors felt that the main consideration for retirement is whether one can afford to maintain a reasonable standard of living and the best quality of life for the retirement period. In making, this decision one must bear in mind that people are now living longer than before. Because people are living longer, they must have the income needed to live during this retirement period. In making this major decision, the authors explained, that the individuals must also factor in, the motion of continuing to work, and if they do, they will have to bear in mind that any income gained over the amount of $14,160 per year while receiving Social Security retirement benefits. Will see a reduction by $1
The aging of the U.S. population is affecting the demographics of the work force. Between 2000 and 2010, the age group experiencing the greatest growth will be those aged 55-64; by 2005, people aged 55 and over are projected to be nearly 20% of the working age population, compared to 12.5% in 1990 (Barber, Crouch, and Merker 1992; Barth, McNaught, and Rizzi 1993). For a number of reasons, including financial need, longer life expectancy, and a desire to continue working, the number of individuals aged 55 and over in the work force is continuing to grow (Hall and Mirvis 1994). It is no longer unusual for individuals to retire from one job, begin drawing a pension, and seek new employment: since 1984, both the full- and
In general, countries experiencing high fertility and rapid population growth, have a “young” population structure and the important policy considerations are if there are enough schools and, sufficient jobs and housing to accommodate this population. Countries with “old” population structures face the problems of structuring and developing retirement and health systems to serve this older population and also they have a considerable reduction the number of the working force. The decline of the work force is one of the most dramatic economic tendencies of the past four decades in the United States. The individual’s decision of whether to stay in the workforce or to retire is based on the collaboration of a number of factors including the following: eligibility for Social Security benefits, availability of and benefits under an employer-financed pension plan, work
While the physical, emotional and social aspects with aging may be experienced in varying degrees and in a variety of ways, the milestone of retirement is a prospect that is universal in the Western world. In most countries, the idea of retirement is of recent origin, being introduced during the late 19th and early 20th centuries. Previously, low life expectancy and the absence of pension arrangements meant that most workers continued to work until death. Nowadays most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers and/or the state. Today, retirement with a pension is considered a right of the worker in many societies. ("Retirement," 2013, p. 1) Retirement is a milestone which, to most, marks the entrance to “old age”, the point at which an individual is socially recognized for their long years of service and permitted to spend the remainder of their “golden years” enjoying the fruits of their labors. While this perspective is an ideal, retirement carries with it a social status that can be both beneficial, when viewed as a reward, and detrimental, when considered by the retiree to be a sign of being obsolete. Preparing for the changes that come with retirement, and in this day and age the inability to
By 2030 the life expectancy is estimated to be 82.3 years of age, which means more people will enjoy a longer, healthier, and active lifestyle than ever before. The Baby Boomer generation will be the trailblazers that change the attitudes towards aging by remaining productive citizens in their communities and showing the younger generation that growing older does not mean that they are giving up the joys of living. In fact, many older adults will start enjoying life by having the time to do things that they were never able to do because of work and family responsibilities. Healthy seniors who are fortunate enough to be sufficiently prepared for their retirement are able to travel, spend time with family, go back to school, learn a new hobby, and much more.
The truth is that the baby boomer population makes up a large portion of the population in the U. S. (Martin, 2014). Baby Boomers who are also referred to as the Graying of America are individuals who were born between 1946 to 1964, which makes up about 29 percent or 76 million in the U. S. population (Martin, 2014). It has been found that most baby boomers or about one-third of Americans do not contribute anything at all to retirement savings nor pension plan (Tang et al., 2013). In terms of longevity, the U. S. Census Bureau projects that individuals ages 85 and older are expected to grow to approximately 20 million by the year 2050 (Martin, 2014). According to the U. S. Bureau of Labor Statistics, employment of persons aged 65 and older has increased by 101% between 1977 and 2007, the number of employed men that are 65 or older has increased by 75% and 147% for women (Tang et al., 2013).
generation nearly approaches the age of 65, the increased evidence shows that many may need, or want depending on their life situations, to work beyond the standard retirement age of 65. One of the main reasons to continue work over 65 is that financial needs might be the single most important incentive to work longer. Even at today’s level of Social Security Benefits, many older Americans need to work as they have little income from other sources. One-Third of the population that is over the age of 65 relies on the benefits from Social Security for all their income
The most comprehensive definition of phased retirement is: a collection of programs that allow an employee to systematically transition from full-time employment to full-time retirement over a period of time (Stendardi, 2005). This is an employee-employer relationship that differs from the traditional model. The income of the participant is kept relatively even by substituting the gradual reduction in the employer provided compensation with gradual increases from the employee’s retirement income (Department of Labor (DOL), 2008). To get a better understanding of the genesis of phased retirement, we need to examine the current retirement model and why it no longer applies today.
To wrap up, the quality of life for retirees is associated with retirement income retirees, prospective or actual, might achieve or have upon leaving the workforce. The underlying rationale of retirement plans, social security and pensions, is one which is informed by broader political, economic, social, cultural and psychological factors. The current paper highlights some underlying causes for, effects on, opportunities in and challenges encountered with retirement plans as expanded in the 1980s and in comparison to the 2000s.
Many people who will be retiring in the future will likely not have the same benefits as people who are at retirement age today. A pension is not guaranteed and Social Security might not provide the funds an individual requires for their standard of living. The only way to know what you need to have when you retire is to estimate your income by using a retirement calculator. Simply review a list of option and see which one
Today, the certainty of receiving sufficient benefits solely from Social Security for a quality standard of living after retirement is indefinite. Baby boomers—individuals born post World War II between 1946 and 1964—are beginning to claim their benefits, and given what I have learned in class, the number of individuals entering the workforce is inadequate to sustain such a large population, thus such generation will consume
By the age of 18, young adults are ready to move out of their parents’ home either to live on their own, go to college or university, or work to cover their expenses. When children move out of the house, parents usually get into a new hobby while they go through the adjustment of being alone again. By the age of 65, retirement settles in; however, with the recent economi downturn in 2008, many senior American citizens resorted to postponing their retirement and others had to modify their lives to compensate for the losses of the
It continues to implore that in order to maintain a good lifestyle during retirement, an individual must contribute not less than 15% of his income to his retirement in addition to benefit such as 401k offered by his employer. It also contended that the average contribution to 401k is between 6% to 8 % which in part is matched by the employer if fully vested. That is, if you are employed for five years or more. One plan that is outlined in the article is to contribute 15% of your income for the first three months and then lower it to between 10% to 12% after that instead of single digits. It further declares that delaying to start saving for retirement is a definite risk, implying that the later you start saving the more you will need to save at a later time. For example, it states that. " if you wait until age 30 to start saving, you will have to set aside 17% of your annual income" to catch up. It also confirms that other factor such as children leaving home may open up the space enabling you to contribute more towards your retirement. Another factor that derails the transition into retirement is the temporary loss of job. The article stated that, temporary loss of job and income make it more difficult to save for retirement. This sometimes leads to early IRA withdrawals to help cover "day-to-day expenses", that will attract a 10% penalty if you are
Why are older people going back to when they should be getting ready to retire? Many older people have to keep working longer in today’s society, the because of the finical burden that is put on them. They’re abundance good and ruthless reasons why they would want to go back to school. There is also plenty effect that would come into play for that individual and they would have taken some serious consideration before returning to school. The reinsurance of a enhanced education in their current job field, would help in receiving a promotion, or raise, to ensure better job security, maybe the person would like to change fields, because of medical limitations that they have in the current job. And maybe they would like to just change job fields. There is a large amount of reason on why people go back to school later in life.
Planning for retirement should not be based on Social Security alone, but rather by saving portions of personal earned wages and putting finances into long-term investments. Depending on Social Security as the only income after retiring is an unsafe and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; this money is used for older generations that will file for these benefits before the younger people working, in the early 21 century, ever receive a chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved by an individual to put toward personal goals will reward greatly. By taking the time to
Advances in medical science have resulted in people living longer. This increase in life expectancy makes retirement planning even more crucial. Furthermore, with better affluence, there is also an increase in demand for a better lifestyle during retirement.