Many individuals will work past the previous established ages of retirement. The fastest-growing segment of the workforce is individuals over the age of 55 (Robbins and Judge, 2014). As the population ages, employers may find it necessary to alter their employment practices and pension plans to induce some of those who would otherwise retire to remain on the job (Axley 2009).
Retirees are eligible to receive reduced Social Security payments at the age of 62. People 65 and over are eligible to receive some free Medicare benefits if they paid Medicare taxes for at least 10 years. The full retirement age is to be increased gradually by 2023 and will be 67 for everyone born in 1960 or later. (wikipedia)
- Table of Content
- 1. How much of your retirement plan would you get today?
- 2. Countries around the world with highest and lowest retirement age
- 3. Further prequisitives Choosing your individual retirement age
- 4. The transition from work to retirement
1. Are you eligable? And how many percent of your full retirement will you get right now?
Here is the answer. The SSA is providing you with all your data that you need to know. Just browse to the calculator and find your current percentage of retirement savings you would receive today. You can get the concrete numbers available in the from of the website. You will get the full amount with 66 years and 8 month. Of course you can decide to retire early, but you have to calculate the money that will be cut off.
2. Countries around the world with highest and lowest retirement age
It’s clear to see that the retirement age differs from country to country. There are various countries in the world, that have a retirement age between 60 and 68. These countries are most of all highly developed and industrialized countries and are located across Europe, in Scandinavia the US (66) and Australia (65). While another group of countries is set up to retire pretty early like China (56), India (60) and Russia (57).
3. Further prequisitives Choosing your individual retirement age
Traditional IRAs require minimum withdrawals by age 70 ½ whereas Roth IRA does not have a requirement on withdrawals. Employee Retirement Income Security Act of 1974 ERISA is the Employee Retirement Income Security Act of 1974.
ERISA “…protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire” (“United States Department of Labor”, n.d.).
To receive benefits upon retirement, one must have received credit for working at least 40 quarters. Full benefits have long been available at age 65;
Reduced benefits are available at 62 years of age, with increased benefits for those who continue to work up to age 70. In order to help maintain the solvency of the system, the full retirement age (FRA) is gradually being increased to 67 years of age for those born in 1960 and later.
By 2030, there will be more than 70 million Americans over age 65 (Taylor, 2005). There is a major concern of how this increased population will affect the healthcare system. Medical care for retiring and aging citizens may strain resources and future generations maybe faced with higher inflation and higher taxes to cover the cost of social security, Medicare, and other retirement benefits (Taylor, 2005).
4. Transition from work to retirement
The transition from a working life to the retirement years can be a difficult process for aging adults as giving up higher salaries for the amount paid for Social Security is drastically different. Forcing retired adults to look for supplement income during this stage at a lower status than previously held in a prior position. (Zastrow & Kirst-Ashman, 2010).
Older people have come in terms with their lives and have a sense of satisfaction with that they have achieved. Social This is a time of great social change for some people. The official age of retirement is 65 for men. As soon as men have retired then women will retire at the same age. As the lifespan increase, people become increasingly active in later life, they will spend a massive part of their lives in retirement, only if the retirement age has increased.
In 1967 the act covered employees between the ages of 40 and 65, the upper limit was extended 70 in 1978 and then the limit was removed completely later on. Now there is no longer an upper age limit, a 79 year old may be just as qualified as a 30 year old and should have the opportunity to prove her or his qualifications and obtain employment base on them. Another issue with this act is mandatory retirement; for the most part this has become a thing of the past.
Today mandatory retirement ages are rare. How does the Social Security retirement system in the US work? All workers in the US are required to participate in the Social Security retirement program, regardless of citizenship. Currently, 6. 2 percent of a worker’s pay is withheld, up to a maximum that is adjusted annually.
Therefore, the cost is not strain to the government but the employer. Simply it a transfer from the government to the employers (Age-discrimination debate has two sides, 1998). With limited age discrimination and a mandatory retirement age, employer suffer from a lower turnover and lower recruitment costs and effort.
The government has set $1,750 as the maximum benefits as per month for every worker who retires at age of 65 and 2 months which is the social security’s appropriate retirement age (www. injuryboard. com/view. cfm/topic=1237). The current social security system should be replaced by a mandatory private pension system