The topic for Something to Think About is, “I Can’t Wait to Retire.” The Social Security Trust Fund is projected to expire in 2033 putting pressure on a system designed over 75 years ago. At the same time, the average American is retiring at an earlier age, at 64 for men and 62 for women. With life expectancy rising by one to three months every year, people can now spend 40% of their adult life in retirement.
But is leaving the workforce early a luxury that many people can no longer afford? Will the early retirements and longer life expectancy cause additional strains on the Social Security Trust Fund? Some suggest changes to the system to limit benefits and raise the age minimums to apply for benefits and many propose that also be done for Medicare. Rather, should the government consider tax and policy innovations to keep people working longer?
