US retirement age could be raised to 69 - how does it compare with other countries?
The US retirement age could be raised under new proposals but how does the current pension threshold compete with systems elsewhere?
Policymakers are reportedly considering raising the Retirement Age in a bid to protect the Social Security system.
Last month, the Republican Study Committee (RSC) backed a bill in the House of Representatives, which would raise the age for retiring with full benefits to 69.
This particular proposal would phase in the hiked Retirement Age for full Social Security gradually, adding four months annually until it is age 69 for those turning 62 in 2033
As it stands, the Full Retirement Age in America is 67 years old, but many chose to retire earlier or even later.
The earliest someone can access their Social Security entitlement is 62, albeit at a much-reduced rate.
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With a growing population increasingly in need of a strong welfare state, raising the Retirement Age has been a recommended remedy to keep Social Security afloat.
However, experts have cited that there will be a knock-on effect if such a decision was implemented in reality.
Here is a breakdown of how the US compares to other Western countries when it comes to Retirement Ages:
- Italy - 67 years of age
- Australia - 67 years of age
- UK - 66 years of age
- Ireland - 66 years of age.
- Germany - 65 (and 7 months)
- Canada - 65 years of age
- New Zealand - no official Retirement Age but the common age is 65
- France - 62 to 67 years of age
- Switzerland - 60 years of age
- Ukraine - 60 years of age.
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Joe Morgan, CEO of Venture Smarter, broke down the potential ramifications of raising the Retirement Age in the US.
He explained: “If the retirement age is increased, seniors may have to continue working for longer before they can retire and collect Social Security benefits.
“This could have negative impacts on their physical and mental health, as well as their quality of life.
“Additionally, older workers may have a harder time finding employment as they age, which could make it difficult for them to continue working.”
The entrepreneur also noted that increasing the retirement threshold would not guarantee a hike to Social Security payments either.
Mr Morgan added: “Social Security benefits are based on a formula that takes into account a person's lifetime earnings and their retirement age.
“If the retirement age is increased, the formula used to calculate Social Security benefits may also change, which could result in lower benefits for retirees.”
