In the U.S., retiring at 65 is an option but not a requirement. Given current life expectancy and lifestyle expectations, it is probably also financially unrealistic. I expect to keep working daily until I’m 70 or 75. Think how many of our Presidents have been over 70 while in office!
In the US, companies cannot force retirement due to age, except in certain cases for Executives. Doing otherwise – even asking about a person’s plans for retirement – is illegally discriminatory. The worker can still choose.
A few stats: When the SSA (Social Security Administration) was established in 1935, average life expectancy was 58 for newborns, 77 for those already age 65. Now? 78 and 80. From 1935 to today, average household income and expenditures rose in roughly equal measure. The greater changes are in % of income devoted to non-essentials (28% in 1935, ~50% now) and avg savings rate (down from 10% to 5% in the last 50 years).
The takeaway? People live longer, save less, and spend more each year. (Don’t get me started on medical expenses!) To afford the extra years of life and a modern lifestyle, people have to work and save longer…or change their habits.
Sources:
- https://www.ssa.gov/history/orghist.html
- cdc.gov
- bls.gov
- tradingeconomics.com