Denmark raises retirement age to 70 – Could Social Security be next?
Should the U.S. raise Social Security's full retirement age?
In a pass aimed in direction of guaranteeing the long-term sustainability of its pension machine, Denmark is elevating its legit retirement age to 70 by 2040. The alternate, part of the 2006 Welfare Agreement, links the retirement age to existence expectancy – meaning as folk live longer, they’ll be anticipated to work longer too.
“This is ready securing factual welfare for future generations,” acknowledged Denmark’s employment minister, underscoring the must alter retirement coverage in step with demographic realities.
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Denmark isn’t on my own. Several diversified OECD worldwide locations – in conjunction with Estonia, Italy, the Netherlands, and Sweden – have both applied or are pondering an analogous reforms. By linking retirement age to longevity, these worldwide locations operate to have the financial health of their public pension programs with out overburdening youthful generations.
With Social Security facing its bask in financial challenges, the inquire now is: May maybe it occur right here? Andreea Pop
At existing, American citizens born in 1960 or later attain stout retirement age (FRA) at 67. However with Social Security’s belief fund projected to be depleted by 2033 – and beneficiaries facing a most likely 21% carve in advantages thereafter – elevating the FRA to 70 is all over all another time being floated as a that you just may deem of solution.
This isn’t the first time the U.S. has really apt the kind of pass.
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