Latest news with #AliciaMunnell
Yahoo
2 days ago
- Business
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'70 Is The New 50' — Baby Boomers Are Being Told to Keep Working Because They're Mentally Sharp, But Is That A Compliment or Just a Budget Fix?
If you're cruising toward retirement and fantasizing about beach chairs and bottomless mimosas, you might want to put a pin in that. According to the International Monetary Fund, 70 is the new 50 — and they're not talking about Botox. A sweeping new study says boomers are sharper, stronger, and more employable than is exactly why some experts think they should stay on the job. Don't Miss: Maximize saving for your retirement and cut down on taxes: . Invest where it hurts — and help millions heal:. The IMF's report, which drew from cognitive and physical performance data on 1 million people aged 50 and older across 41 countries, suggests older adults today are operating on a whole new level. A 70-year-old in 2022, it says, is performing about the same—mentally and physically—as a 53-year-old in 2000. That means better memory, math skills, and even grip strength. Translation: boomers aren't aging out—they're leveling up. And that's got some major institutions eyeing this so-called "silver economy" like it's a gold mine. The IMF isn't just cheering on senior brainpower. It's also warning that aging populations could tank public finances unless countries tap into this growing, capable workforce. With birth rates falling and the working-age population shrinking, the idea is that older adults might need to step up—or at least, not step away too soon. Trending: Denmark's already made its move. Starting in 2040, the country will raise the public pension age to 70—the highest in Europe. Since 2006, Denmark has been tying retirement age to life expectancy. The U.S. doesn't have a mandatory retirement age, but it does have a full retirement age for Social Security—66 to 67, depending on your birth year. Waiting until 70 unlocks the max payout – 8% more for each year you delay. However, a 2023 paper National Bureau of Economic Research found that only about 10% of Americans wait that long, even though over 90% would benefit from doing so. Still, proposals to push the official full retirement age to 70 have been floating around. Sen. Rand Paul (R-KY) introduced one in late 2023 as part of negotiations over the Social Security Fairness Act. His idea? Raise the retirement age three months per year until it hits 70, saving nearly $400 billion. That proposal was ultimately scrapped, but the debate is far from over. Here's where it gets messy: while working longer might be viable for some, it's not a fair deal for everyone. "When you have such a big, big difference [in life expectancy], any across-the-board increase in the retirement age would be foolish," said Alicia Munnell of Boston College's Center for Retirement Research told CNBC. For lower-income Americans, who already have shorter life spans and fewer savings, later retirement could mean fewer years enjoying the benefits they've paid Biggs, a senior fellow at the American Enterprise Institute, adds another wrinkle: even if the government raised the age tomorrow, it would take decades for the savings to kick in. Meanwhile, Social Security's funding crisis is coming fast—and needs money now. Yes, boomers are healthier and sharper than ever. That's worth celebrating. But pushing them to stay in the workforce longer—especially in physically demanding jobs or in sectors where ageism is still a problem—can't just be about fixing budget shortfalls. The silver economy may be rising, but whether that's empowerment or pressure depends on who's holding the stopwatch—and who gets to choose when the clock runs out. Read Next: Many are using retirement income calculators to check if they're on pace —image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article '70 Is The New 50' — Baby Boomers Are Being Told to Keep Working Because They're Mentally Sharp, But Is That A Compliment or Just a Budget Fix? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Are You Rich And In Your 60s? Here's the Net Worth It Takes To Be Upper Class
You're in your 60s—or getting close—and wondering where you stand. Maybe retirement's around the corner, maybe you're still working by choice or necessity. Either way, there's one question that quietly lingers behind the spreadsheets and savings goals: am I doing better than most? There's no single number that defines success—but when it comes to net worth, the data paints a pretty clear picture of who's considered upper class in this age group. Over the past three decades, the average retirement age has crept upward. In 2024, men typically retired at 64.6, women at 62.6, according to economist Alicia Munnell. That's a few years older than in 1994, when retirement came around 61 for men and 59 for women. The shift is slow but steady, and it can influence everything from lifestyle to savings goals as people extend their working years—or opt out altogether. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. The Federal Reserve's 2022 Survey of Consumer Finances offers a detailed look at household net worth by age and percentile. For Americans in their 60s, here's how the numbers break down: Ages 55–64: 80th percentile (Top 20%): $1,472,000 90th percentile (Top 10%): $2,960,900 Ages 65–74: 80th percentile (Top 20%): $1,524,000 90th percentile (Top 10%): $2,997,300 In contrast, the median net worth is far lower: $364,260 for ages 55–64 and $410,000 for ages 65–74. That gap illustrates just how concentrated wealth can be among the upper percentiles. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Net worth isn't just what's in your bank account. For the upper class, it's usually spread across: Retirement accounts (401(k), IRA) Home equity and real estate Stocks, bonds, mutual funds Business ownership Cash and savings Personal assets like vehicles, jewelry, or art This kind of diversified portfolio not only builds long-term wealth but also creates multiple income streams as people move into retirement or your net worth is north of $1.5 million in your 60s, you're solidly in the upper class by financial standards. Nearly $3 million? You're brushing shoulders with the top 10%. These benchmarks—grounded in federal data—offer more than bragging rights. They're a tool to help you assess where you stand and what's possible from here. Because in your 60s, whether you're clocking out or doubling down, wealth isn't just a number—it's a strategy. Read Next: Invest where it hurts — and help millions heal:. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Are You Rich And In Your 60s? Here's the Net Worth It Takes To Be Upper Class originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Work till you drop? Here's why America's average retirement age keeps rising.
The average retirement age of American workers is creeping steadily up, according to a new report from a prominent economist. And that trend invites a question: When will America's retirement age stop rising? Over the past three decades, the average retirement age has risen by about three years, economist Alicia Munnell reports in an April research brief. The typical retirement age in 2024 was 64 for men, 62 for women. The upward trend is slow, but striking. In 1994, the average man worked to age 61, while the typical woman clocked out at 59. We're working longer for several reasons: ◾Americans are living longer, staying healthier, and working in less physically demanding jobs. ◾Workplace pensions have given way to 401(k) plans, which reward workers who delay retirement. ◾Social Security changes have pushed the 'full retirement' age from 65 to 67, penalizing those who claim the benefit earlier. ◾Fewer employers offer health insurance to workers who retire before 65, the year Medicare benefits begin. 'There were a lot of forces that encouraged people to work longer,' said Munnell, senior adviser at the Center for Retirement Research at Boston College, an organization she founded. Does the trend toward later retirement bode well or ill for American society? Among retirement researchers, opinion is divided. If Americans were working longer to stave off poverty, then a rising retirement age would be a bad thing, said Andrew Biggs, a senior fellow at the American Enterprise Institute. But he doesn't see that happening, at least not for most Americans. 'They're getting higher Social Security benefits, and the benefits they're getting from private retirement plans have increased,' he said. 'So, they don't need to work to stay out of poverty.' However, whether American retirees have enough savings and benefits to live comfortably in retirement is a matter of spirited debate. In a viral 2024 op-ed, Biggs made the case that most retirees are managing just fine, even with relatively modest savings. On the other hand, a 2024 AARP survey found that one-fifth of over-50 adults have no retirement savings, and that many worry they won't have enough funds to last through retirement. 'So, for a meaningful share of workers, postponing retirement is likely a necessity to keep their main income stream going,' said Nicola Bianchi, assistant professor of strategy at Northwestern University's Kellogg School of Management. American workers have decidedly mixed emotions about retirement. Millions of Americans dream of retiring early. As we age, dreams give way to reality, and many workers resolve to remain employed for as long as they can. The average over-50 worker expects to retire at 67, according to the Transamerica Center for Retirement Studies. 'Today's workers envision extending their working lives beyond traditional retirement age because they want and need to work,' said Catherine Collinson, CEO of the Transamerica Center. In the end, though, many of us retire earlier than we had planned, often because of corporate downsizing or declining health. Munnell's research sought to divine whether average retirement ages will rise further in years to come: One day, will most Americans work to age 70? Probably not. Munnell concluded that the upward trend has likely peaked. 'There are all these forces that pushed up the average retirement age, beginning in the mid-'90s,' she said. 'And the thing that struck me is that every one of them seems to have played itself out.' The gradual uptick in Social Security's full retirement age is done, with no more changes planned. The shift from pensions to the 401(k) is complete, and half of American workers now participate in the plans. Meanwhile, the trend toward longer and healthier lives has slowed. In the calculus of American retirement, two specific ages loom large. One is 62, the year most Americans become eligible for Social Security. The other is 65, the year Medicare kicks in. It's no surprise that the average retirement age for men and women falls between those years, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, or EBRI. 'I think those two years are going to be key,' he said. 'Unless those are moved, I don't see that the average retirement age is going to move much.' The share of Americans who claim Social Security at 62 has dropped dramatically in recent decades. Based on expected longevity, most of us are better off financially if we wait until 70 to claim the benefit. Even so, 62 remains the most popular age for Americans to claim Social Security. Munnell predicts the average retirement age may actually decline in 2025, for a reason that she might not have predicted in 2024. The Trump administration's cost-cutting campaign across the federal government has triggered a torrent of new Social Security claims this year. New claims were up by more than 15% in March, compared with the same month in 2024. Munnell and others ascribe the surge to widespread fears about the stability of the retirement trust fund, amid staff cuts, rule changes, website outages and leadership shuffles. 'They're all racing in to claim benefits, which means they're likely to stop working earlier than they had planned,' she said. Future policy changes could determine whether America's retirement age continues to rise. Republicans in Congress have periodically proposed raising the full retirement age for Social Security, although President Trump has pledged not to touch it. If the age of eligibility for full Social Security benefits rose from 67 to, say, 70, America's average retirement age would probably resume its upward drift, Munnell said. If Congress were to raise the age of eligibility for Medicare, retirement ages could rise even more dramatically. But retirement experts say it's hard to imagine that scenario, given the high costs of health insurance. 'I don't see that happening,' said Copeland of EBRI. This article originally appeared on USA TODAY: America's retirement age is rising. Will the trend ever reverse?
Yahoo
22-05-2025
- Business
- Yahoo
Work till you drop? Here's why America's average retirement age keeps rising.
The average retirement age of American workers is creeping steadily up, according to a new report from a prominent economist. And that trend invites a question: When will America's retirement age stop rising? Over the past three decades, the average retirement age has risen by about three years, economist Alicia Munnell reports in an April research brief. The typical retirement age in 2024 was 64 for men, 62 for women. The upward trend is slow, but striking. In 1994, the average man worked to age 61, while the typical woman clocked out at 59. We're working longer for several reasons: Americans are living longer, staying healthier, and working in less physically demanding jobs. Workplace pensions have given way to 401(k) plans, which reward workers who delay retirement. Social Security changes have pushed the 'full retirement' age from 65 to 67, penalizing those who claim the benefit earlier. Fewer employers offer health insurance to workers who retire before 65, the year Medicare benefits begin. 'There were a lot of forces that encouraged people to work longer,' said Munnell, senior adviser at the Center for Retirement Research at Boston College, an organization she founded. Does the trend toward later retirement bode well or ill for American society? Among retirement researchers, opinion is divided. If Americans were working longer to stave off poverty, then a rising retirement age would be a bad thing, said Andrew Biggs, a senior fellow at the American Enterprise Institute. But he doesn't see that happening, at least not for most Americans. 'They're getting higher Social Security benefits, and the benefits they're getting from private retirement plans have increased,' he said. 'So, they don't need to work to stay out of poverty.' Whether American retirees have enough savings and benefits to live comfortably in retirement is, however, a matter of spirited debate. In a viral 2024 op-ed, Biggs made the case that most retirees are managing just fine, even with relatively modest savings. On the other hand, a 2024 AARP survey found that one-fifth of over-50 adults have no retirement savings, and that many worry they won't have enough funds to last through retirement. 'So, for a meaningful share of workers, postponing retirement is likely a necessity to keep their main income stream going,' said Nicola Bianchi, assistant professor of strategy at Northwestern University's Kellogg School of Management. American workers have decidedly mixed emotions about retirement. Millions of Americans dream of retiring early. As we age, dreams give way to reality, and many workers resolve to remain employed for as long as they can. The average over-50 worker expects to retire at 67, according to the Transamerica Center for Retirement Studies. 'Today's workers envision extending their working lives beyond traditional retirement age because they want and need to work,' said Catherine Collinson, CEO of the Transamerica Center. In the end, though, many of us retire earlier than we had planned, often because of corporate downsizing or declining health. Munnell's research sought to divine whether average retirement ages will rise further in years to come: One day, will most Americans work to age 70? Probably not. Munnell concluded that the upward trend has likely peaked. 'There are all these forces that pushed up the average retirement age, beginning in the mid-'90s,' she said. 'And the thing that struck me is that every one of them seems to have played itself out.' The gradual uptick in Social Security's full retirement age is done, with no more changes planned. The shift from pensions to the 401(k) is complete, and half of American workers now participate in the plans. Meanwhile, the trend toward longer and healthier lives has slowed. In the calculus of American retirement, two specific ages loom large. One is 62, the year most Americans become eligible for Social Security. The other is 65, the year Medicare kicks in. It's no surprise that the average retirement age for men and women falls between those years, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, or EBRI. 'I think those two years are going to be key,' he said. 'Unless those are moved, I don't see that the average retirement age is going to move much.' The share of Americans who claim Social Security at 62 has dropped dramatically in recent decades. Based on expected longevity, most of us are better off financially if we wait until 70 to claim the benefit. Even so, 62 remains the most popular age for Americans to claim Social Security. Munnell predicts the average retirement age may actually decline in 2025, for a reason that she might not have predicted in 2024. The Trump administration's cost-cutting campaign across federal government has triggered a torrent of new Social Security claims this year. New claims were up by more than 15% in March, compared with the same month in 2024. Munnell and others ascribe the surge to widespread fears about the stability of the retirement trust fund, amid staff cuts, rule changes, website outages and leadership shuffles. 'They're all racing in to claim benefits, which means they're likely to stop working earlier than they had planned,' she said. Future policy changes could determine whether America's retirement age continues to rise. Republicans in Congress have periodically proposed raising the full retirement age for Social Security, although President Trump has pledged not to touch it. If the age of eligibility for full Social Security benefits rose from 67 to, say, 70, America's average retirement age would probably resume its upward drift, Munnell said. If Congress were to raise the age of eligibility for Medicare, retirement ages could rise even more dramatically. But retirement experts say it's hard to imagine that scenario, given the high costs of health insurance. 'I don't see that happening,' said Copeland of EBRI. This article originally appeared on USA TODAY: America's retirement age is rising. Will the trend ever reverse? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
22-05-2025
- Business
- USA Today
Work till you drop? Here's why America's average retirement age keeps rising.
Work till you drop? Here's why America's average retirement age keeps rising. Show Caption Hide Caption Retirement group works to curb loneliness Combating loneliness and depression in their golden years, a Wisconsin senior citizen group is looking to add more members. Fox - Milwaukee The average retirement age of American workers is creeping steadily up, according to a new report from a prominent economist. And that trend invites a question: When will America's retirement age stop rising? Over the past three decades, the average retirement age has risen by about three years, economist Alicia Munnell reports in an April research brief. The typical retirement age in 2024 was 64 for men, 62 for women. The upward trend is slow, but striking. In 1994, the average man worked to age 61, while the typical woman clocked out at 59. Americans are living longer, and working longer We're working longer for several reasons: Americans are living longer, staying healthier, and working in less physically demanding jobs. Workplace pensions have given way to 401(k) plans, which reward workers who delay retirement. Social Security changes have pushed the 'full retirement' age from 65 to 67, penalizing those who claim the benefit earlier. Fewer employers offer health insurance to workers who retire before 65, the year Medicare benefits begin. 'There were a lot of forces that encouraged people to work longer,' said Munnell, senior adviser at the Center for Retirement Research at Boston College, an organization she founded. Are Americans working longer because they have to? Does the trend toward later retirement bode well or ill for American society? Among retirement researchers, opinion is divided. If Americans were working longer to stave off poverty, then a rising retirement age would be a bad thing, said Andrew Biggs, a senior fellow at the American Enterprise Institute. But he doesn't see that happening, at least not for most Americans. 'They're getting higher Social Security benefits, and the benefits they're getting from private retirement plans have increased,' he said. 'So, they don't need to work to stay out of poverty.' Whether American retirees have enough savings and benefits to live comfortably in retirement is, however, a matter of spirited debate. In a viral 2024 op-ed, Biggs made the case that most retirees are managing just fine, even with relatively modest savings. On the other hand, a 2024 AARP survey found that one-fifth of over-50 adults have no retirement savings, and that many worry they won't have enough funds to last through retirement. 'So, for a meaningful share of workers, postponing retirement is likely a necessity to keep their main income stream going,' said Nicola Bianchi, assistant professor of strategy at Northwestern University's Kellogg School of Management. Workers have a love-hate relationship with retirement American workers have decidedly mixed emotions about retirement. Millions of Americans dream of retiring early. As we age, dreams give way to reality, and many workers resolve to remain employed for as long as they can. The average over-50 worker expects to retire at 67, according to the Transamerica Center for Retirement Studies. 'Today's workers envision extending their working lives beyond traditional retirement age because they want and need to work,' said Catherine Collinson, CEO of the Transamerica Center. In the end, though, many of us retire earlier than we had planned, often because of corporate downsizing or declining health. Munnell's research sought to divine whether average retirement ages will rise further in years to come: One day, will most Americans work to age 70? Probably not. Munnell concluded that the upward trend has likely peaked. 'There are all these forces that pushed up the average retirement age, beginning in the mid-'90s,' she said. 'And the thing that struck me is that every one of them seems to have played itself out.' The gradual uptick in Social Security's full retirement age is done, with no more changes planned. The shift from pensions to the 401(k) is complete, and half of American workers now participate in the plans. Meanwhile, the trend toward longer and healthier lives has slowed. Two ages loom large in the retirement decision In the calculus of American retirement, two specific ages loom large. One is 62, the year most Americans become eligible for Social Security. The other is 65, the year Medicare kicks in. It's no surprise that the average retirement age for men and women falls between those years, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, or EBRI. 'I think those two years are going to be key,' he said. 'Unless those are moved, I don't see that the average retirement age is going to move much.' The share of Americans who claim Social Security at 62 has dropped dramatically in recent decades. Based on expected longevity, most of us are better off financially if we wait until 70 to claim the benefit. Even so, 62 remains the most popular age for Americans to claim Social Security. Will the retirement age go down in 2025? Munnell predicts the average retirement age may actually decline in 2025, for a reason that she might not have predicted in 2024. The Trump administration's cost-cutting campaign across federal government has triggered a torrent of new Social Security claims this year. New claims were up by more than 15% in March, compared with the same month in 2024. Munnell and others ascribe the surge to widespread fears about the stability of the retirement trust fund, amid staff cuts, rule changes, website outages and leadership shuffles. 'They're all racing in to claim benefits, which means they're likely to stop working earlier than they had planned,' she said. Future policy changes could determine whether America's retirement age continues to rise. Republicans in Congress have periodically proposed raising the full retirement age for Social Security, although President Trump has pledged not to touch it. If the age of eligibility for full Social Security benefits rose from 67 to, say, 70, America's average retirement age would probably resume its upward drift, Munnell said. If Congress were to raise the age of eligibility for Medicare, retirement ages could rise even more dramatically. But retirement experts say it's hard to imagine that scenario, given the high costs of health insurance. 'I don't see that happening,' said Copeland of EBRI.
