Retirement has become a big topic over the last couple of years — specifically, the future of Social Security and support for retirees in the United States. But America is far from the only country looking at its retirement age and how to support its people once they reach an age to stop working a regular job.
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Retirement in the US
Although people tend to be living longer in the U.S., the average retirement age is just 62, according to a recent Mass Mutual survey. Of course, many factors that play into individual retirement ages, such as health and financial readiness.
Sixty-two is also the earliest age you can collect Social Security, but your benefit is lower than if you wait until full retirement age. If you were born 1960 or later, full retirement benefits are payable at age 67. The average monthly Security benefit check for retired workers is $1,919 as of July, according to the Social Security Administration.
However, more workers in the U.S. have been putting off retirement — and it’s not just because of financial concerns. According to CNN, “One factor contributing to today’s higher retirement age is that college-educated Americans tend to work somewhat longer than others on average, largely because they tend to be in better health.”
The trust funds that help fund Social Security will run dry within the coming decade. Without action, the program’s sole funding will come from payroll withholding, which only covers about 77% of benefits. Although no one has presented a detailed plan for alleviating the shortfall, it’s possible that the full retirement age could increase as part of a long-term solution.
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Retirement in China
The situation in China sounds somewhat familiar to those in the U.S. China is set to gradually raise its retirement age in the next five years as it deals with an aging population and a struggling pension system.
“Life expectancy in the country has now risen above the United States, to 78 years, from just 36 years at the time of the Communist revolution in 1949,” the BBC reported. “But China’s retirement age remains one of the lowest in the world — at 60 for men, 55 for women in white-collar jobs and 50 for working-class women.”
This is not new for China. In fact, this plan has been in the works for a few years as the pension budget dwindles.
According to the BBC, “The state-run Chinese Academy of Social Sciences said in 2019 that the country’s main state pension fund will run out of money by 2035 — and that was an estimate before the Covid-19 pandemic, which hit China’s economy hard.”
Last year’s announcement of plans to raise the retirement age has prompted angry responses, including on social media, according to Newsweek. Some young people have been among those to express concerns about the plans and if it would mean more difficulty finding jobs as older workers keep their positions longer.
It also comes after previous protests by elderly people against big cuts to medical benefit payments. Residents fear that local governments are tapping into individual accounts to deal with shortages in the state pension fund.
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This article originally appeared on GOBankingRates.com: The Average Retirement Age in 2024: US vs. China
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