Do you younger people think you will ever be able to retire?

Question

They keep raising the age you need to be before you can get Social Security. I think it's 70 now, isn't it? By the time I get up to age 70, they will have raised it to 85.

WindAtMyBack · Accepted Answer

The minimum age to start getting Social Security has not increased. It is most definitely NOT 70.

This is how it works.This is not opinion. This is how it's actually done.

You can start withdrawing from an IRA without penalty at 59 1/2
The minimum age to start collecting Social Security is 62.

This is where it starts getting tricky. If you really want to know how it works, you have to trudge through this.

You can start collecting SS at 62, but there is a penalty for early retirement.

They have what is called the "full retirement age". The full retirement age is a baseline. The baseline is used for all other calculations. It is not the minimum, nor the maximum retirement age.

The "full retirement age" has been slowly increasing.

If you were born in 1954, the full retirement age was 66 years old. Again, this is a baseline, not a minimum or maximum age.

For each year after a birth year of 1954. the full retirement age increases by two month.

So if you were born in 1955, the full retirement age is 66 and 2 months.
If you were born in 1956 (like me) the full retirement age is 66 and 4 months.

This continues up to the birth year of 1961, with a full retirement age of 67.

It does NOT currently increase beyond that. In other words, it gradually increased ONE YEAR from 66 to 67.

You can start collecting before or after the full retirement age. If you start before, there is a penalty. If you start after, there is a bonus. I think the maximum penalty is around 30%. I don't know what the maximum bonus is.

The maximum penalty is at age 62. The maximum bonus is at age 70. You can start collecting after age 70, but you won't get an additional bonus for it.

Some of the talk about "increasing" the retirement age does not increase the minimum age. It allows for someone to work beyond the age of 70 and get a bonus for doing so. So if you don't start SS until 71, you will get more than if you start at 70.

There have been dozens of proposals on the table over the years. The above proposal is one of them. It's also one that has gotten a lot of publicity, supposedly "increasing" the retirement age. The above proposal does NOT increase the retirement age. It allows a person work longer in they choose, and get a bonus for doing so.

But that has not happened yet. Currently, the only increase has been the baseline increase from 66 to 67.

Life expectancy is also used. If you retire young, you get less, but you get it for longer. If you retire older, you get more, but don't get it as long. This is taken into account for the calculations.

OlderAndWiser · Accepted Answer

The age of retirement was raised because current retirees are not being paid from the money which they paid in to Social Security over the years, but they are being paid from current contributions of younger workers. As the baby boomers fill the ranks of the retirees, there are more people to pay and fewer younger workers supporting them, so the age of retirement gets raised to solve the problem. As the boomers die off, the ratio should become more favorable and the retirement age could be lowered.

dustybiker2 · Accepted Answer

No it's recommended you wait until 70 as the benefits are better. But trump has killed the call center and slashed it's employees so it won't be there for you anyway. He and his rich pricks will have spent everyones money.

FreyaRed · Accepted Answer

When I'm 60 retirement age will 20 years above usual life expectancy.
Fortunately I was born with the silver spoon in my mouth and I inherited few things which grant me passive income that is inflation resistant.

lightbulb27 · Answer

since I was your age I realized the path we are on, which is directionally... off a cliff... only question was when. I did not count on the SS tax which is like 15%, to ever receive it.

reality is, govt will atke easy path, post Trump, and inflate our way out of any situation. even trump doing that to some degree, but will continue.

do they think they will retire? Most young people don't think that far. They will retire, but won't have the standard of living theyd like to think they will have.

if get a govt job and pension... like education, fire, police in nyc... maybe. many will suffer that don't save enough to counter the theft by inflation.

MuddyMole · Answer

The retirement age is already high enough that raising it further won't have any real effect - it just means that instead of a pension, people will be paid disability or unemployment benefits, as noone's going to be employing someone in their late sixties (especially to do any kind of physical labour).
Still, if your (grand) parents own their own homes (which will have skyrocketed in value), and you don't have too many siblings, you'll probably be okay by the time you reach old age - you can just expect to inherit more than you earn.
On the other hand, if you think you can work harder, save more, and be rewarded with a more comfortable retirement than everyone else, you're probably going to be disappointed. Most young people already realize that, which is why milennials invented the concept of a work-life balance - there's no point working more than you need to, if you're not going to see the benefits (home ownership, early retirement, etc).

Lynx122 · Answer

I saw a different meme where an American says if I work 25 more years making 300 k I'll be able to retire and go to the beach.

And then an italian making 45 k. I should go to the beach in the afternoon and then take a walk.

That's the more accurate meme for me :) I feel like the italian

I read that 62% of people who are making 300k in the U. S. are struggling with credit card debt. That's actually insane. I feel like you guys have a completely different idea of money and your priorities etc.

Tarifa · Answer

Similar thoughts here. They keep raising the age where you can retire. You can do so before the 'recomended' age, but it comes at a cost, as you will have to give in parts of your rights.

Apart from the financial aspects, I would say, enjoy life to the fullest at the age you are now. I've seen so many people thinking that when they retire, they will make all these great trips, visiting countries they only dreamed of. I've seen too many people just wait snf put off decisions for a later stage in life.

RavVid · Answer

Retirement is a relatively new concept. It was only after WW2 that people were able to accumulate enough wealth to be able to do so. Older people would help out on the family farm or family business as they could.

But family operations stopped and don't really exist for the most part now.

I think the greater threat is premature retirement due to AI.

Kaneki05 · Answer

I think most jobs won't exist in the future so this question don't really apply to what I see happening. Most things will be automated and many will no longer have to work. Jobs have been already replaced like this and I only see it expanding.

Don't impact me really I retired after school lol, Haven't had a job and never will. Mostly due to health but I don't want to either.

Finchie40 · Answer

That’s insane if that’s the case , a lot of people don’t even make it to 70 , they should be lowering the age not raising it , Greedy fucking country we live in , So pathetic

Purpleronnie · Answer

Hahah , understanding that younger means anything below retirement age I will throw my hat in.

Putting aside the fact that retirement is a privilege and not a right we reap what we sew. I’m only a decent lottery win away from instant retirement but will happily work until I can no longer fulfill a purpose paid or unpaid.

molonski2 · Answer

Just keep working , keep investing , the actual social security age does not matter , full retirement is boring , get involved in things that inspire you , true " retirement " is not the answer anyhow.

Surely · Answer

You better make some investments and save for retirement or there may not be any there. The unfair part is that you will have to keep on paying the SS tax!
If the no tax on tips is passed. Those people might not be paying into SS. So they better save for their own retirement.

midnightmoon05 · Answer

Doesn’t sound like most young people think so far.

jamesgoldman · Answer

No but 1) I wouldn't want to and 2) my life expectancy was 50 and that was before the myopericarditis

supercutebutt · Answer

Just save/invest money and you can retire on your terms.

just_a_potato · Answer

In this economy, I'm probably working till the day I die, and considering how often I drink, I won't make it to retirement age anyway 😂

seeyounexttuesday · Answer

You're an idiot if you're expecting Social Security to fund your retirement. You should be pumping the max in a 401k or Roth IRA.

Anonymous · Answer

No. They tell us to save for our pension but what good is it to us if we have to work until 70? And of course they will want to tax the pension and inflation could make your pension worthless.

fonduegirl · Answer

Hahaha yes. Spot-on. By the time I'm 60, retirement age will be 99. Assuming you live that long lol

Wiredone · Answer

Im going to have to work until I die the way things are going for me

aquamarine321 · Answer

I believe I’ll die before that, but people older than me keep saying that I’ll love long and this and that

Smegskull · Answer

Don't think of it as a retirement age. Think of it as the age you are eligible for pensioner's benefits. You can retire whenever you like if you make/save enough money before then.

qwerty2469 · Answer

Old people my age 44 will never retire. Young kids will die in wars or be killed by our He Brew overlords as robots amd AI take over their productivity.

DrPepper12 · Answer

No. Not until the revolution wipes away late stage capitalism

TonyMetal___86 · Answer

I hope that you have a long joyful life, you're still a very young girl...

Anonymous · Answer

In my crappy country, it's a miserable chance.

Espreso9 · Answer

No, I’d never think I’d be able to get old. I use to think teenagers were old.

sinestro23 · Answer

I'm not even 40 and I'm already retired lol

Agape93 · Answer

Nope. I don't really want to, tbh

Brittanyrunner06 · Answer

It’s so far away, I have no idea. I hope so.

exitseven · Answer

Social Security has been raised to 67

whiskeyontherocks · Answer

I’m not going to get my hopes up

TheKillerJason · Answer

Yes let’s all pray bitcoin gets to 1m

Anonymous · Answer

No..

Do you younger people think you will ever be able to retire?

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