We all know the Social Security system is in danger of running out of money before 2033. As a result, lawmakers and Congress have considered changing the average retirement age in the United States. Recent surveys show that sixty-two is the average age at which Americans retire. However, the majority of workers expect their retirement age to be at 67. More than 56% of retirees retired earlier than they had planned. About 38% of early retirees said they were forced to stop working because of health problems or disabilities, underscoring the importance of health in early retirement decisions. Another factor in early retirement is the state of the labor market. Of those who retired early, 14% did so because they were laid off.

Many people don’t find it realistic or appealing to look for another job, especially if they are already thinking about claiming benefits. In addition, unforeseen financial fluctuations or family dynamics may force individuals to reevaluate their goals. While some people discover they’ve saved enough money to retire early, for most, it’s usually a combination of need and circumstance. In addition, retiring earlier than expected can be financially difficult for most people because they end up withdrawing from their assets earlier than intended, reducing the size of their retirement fund over time.

Retirement age will change for retired workers in the United States

According to several reports, the average American retiree has accumulated $269,078 for their golden years. This is significantly less than what is typically recommended. A goal of about $572,000 is recommended by financial advisors. If people claim Social Security benefits before their full retirement age, which is 67 for many, their monthly benefits are permanently reduced. If the retirement age is before age 65, they risk gaps in coverage. Planning to work more hours may not be the foolproof method some believe. Perhaps some Americans are unaware of it, but early retirement is more common than they might believe, due to health concerns, layoffs, and other unforeseen life occurrences. 

Without enough reserves, the financial situation might quickly become complex. Although each person’s circumstances are unique, the best course of action for those who wish to have more control over their retirement years may be to increase their savings now and have a backup plan. Therefore, reevaluating your retirement plan is usually a good idea if you want to see where you are. Financial advisors may assist you with modifying your savings plan, going over your investment options, and making sure you’re ready for any unforeseen circumstances that might drive you into an early retirement.

Lowering the retirement age may not be the best option 

Retirement has become one of the most important subjects as the average age of the population increases in many countries, making the issue of investing in financial, medical, and community support for older adults in retirement a significant political concern. According to Statista, the average full-time salary for an American employee is $74,738, but this figure varies greatly depending on geographic area, industry, race, gender, and other factors. In 2022, approximately 34% of the US population earned less than $50,000 per year. Even with the federal government’s periodic changes to the cost of living adjustment (COLA), many people who have contributed to the Social Security system during decades of employment may find that their eventual monthly benefit check is unlikely to match the cost of living expenses. 

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For this reason, workers in the US often use privatized retirement savings accounts like 401Ks or IRAs, but contributing to these accounts can be challenging, especially in an uncertain economic environment. Will the younger Americans even be able to choose that option, though? The TIAA Institute’s recent study revealed that 15% of those not yet met the retirement age have no intention to retire, and 47% are “very” or “somewhat” certain they will achieve this milestone when expected. Furthermore, among Americans aged 22 to 34 and Hispanics (each 37%), confidence is at its lowest. Many Americans decide to retire later—if they can retire at all—to keep their access to healthcare and vital income due to the difficult-to-reach and inadequate social safety net. 

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