The French have been protesting and even rioting over a plan to raise their retirement age from 62 to 64. If this makes you sulk, you are not alone. In America and many other Western nations, workers will still be on the job when their 62-year-old amis have checked out of the ratatouille race. Sadly, many of them may be caught unprepared and will have to keep working even longer than the official age. In the United States, you can receive partial social security benefits starting at age 62. The retirement age for full benefits is 65 for those born before 1956 and 66 for those born after.
The retirement riots started because President Emmanuel Macron announced his plan to raise the age because he said the nation’s pension fund is severely underfunded. Workers would have to delay taking benefits so everyone could get their share. Despite weeks of strikes, protests, and riots over the change and Macron’s announcing it without warning, France’s Constitutional Council approved the increase. It rejected a proposal to put the question to a popular vote.
In making workers wait longer to start collecting their pensions, France joins several other industrial nations that have been ratcheting up retirement ages. Once the standard milestone, 65 is becoming the exception rather than the rule.
Retirement: Are We There Yet?
It depends on where you live:
- Belgium: 65
- Denmark: 66.5
- Greece: 67
- Hong Kong: 65
- Iceland: 67
- Ireland: 66
- Israel: 67
- Italy: 67
- Japan: 62
- Netherlands: 66
- Portugal: 66
- Singapore: 62
- Spain: 65
- United States: 65 for those born before 1956; for those born after, 66.
- United Kingdom: 67, which has been proposed to rise to 68 between 2044 and 2046.
8 Great Facts About Retirement
1. When can you quit? It depends on when you were born.
You may start collecting full benefits at age 66 if you were born between 1943 and 1959 and at age 67 if you were born in 1960 or later.
2. More people are waiting longer to leave.
The average retirement age has increased by three years since the 1990s. Today, it is 65 for men and 62 for women.
3. The retirement boom has begun.
An average of 10,000 baby boomers are turning 65 every day. This is expected to continue until they are all aged out in 2030.
4. Baby boomers are up to their eyeballs in mortgage debt.
According to one study, despite being close to retirement, they still owe a whopping $191,650 on their homes.
5. Many people think they will never get to retire.
Some 36 percent of Americans believe they will never get to retire. Even more, 55 percent say they are behind on their retirement savings, but half contribute the same amount or less to their retirement funds compared to the previous year.
6. They had better not count on Social Security.
For one thing, experts say you need at least 80 percent of your pre-retirement income after you quit. The average monthly benefit is $1,666. So, you will be fine – if you are now living well on around $2,100 a month.
7. Yes, it is true: Social Security is running out of money.
In March 2023, the Social Security Board of Trustees announced in its annual report that funds will be depleted in 2034, and benefits will have to be cut by 20 percent if Congress does not act to fix the problem of costs exceeding income. This is one year sooner than previous estimates.
8. You will need a big chunk of change.
How big? Between $500,000 and $1 million, according to most experts. And that is just to live comfortably, not luxuriously. This fact is worsened by the possibility that your retirement could last longer than you think, especially if you retire early and are in good health. Illness, layoffs, unexpected family emergencies, and other circumstances could mean you must quit before you had planned. One study found that 50 percent of retirees left work before they wanted to because of these situations.
We Are Ready for Your Retirement
It is never too late to plan for retirement, not even after you have left the work world behind. We can help you create a solid plan for living comfortably and keeping your golden years from turning to brass. For a free consultation, call (954) 251-0332 or email info@ocestatelawyers.com. We speak English, Spanish, and Russian.
