Popular believe a couple decades ago was that the retirement age in USA would go down; as would the amount of hours worked a week would go down. With the advent of technology in the information age, expectations were high as we dreamed that robots would work for us. The reality is that with a healthier, longer life we are capable of having a longer working career. In addition, with the economic reality of having to support ourselves for 20, 30 and possibly 40 years, longer than most of us actually worked.
These additional years would also test inadequately planned government social programs to the max that we have substantial investment in. The facts are that when social security started in the 30s the plan was for us to pay into a social program which we could take advantage of upon retirement at the age of 65. At the time the average life expectancy was 61. Looking at this program from that perspective made it look like it would be a cash cow for the government.
In recent Gallup poles average Americans expect to retire at age 67 and feel they will have a very financially uncomfortable retirement (Jones, 2012). If the government was to defer the date of payment to the age of 70 the savings would be substantial as well as the extra contribution for a labor force for 5 years.
Over the past 30 years the IRS has raised the full retirement age. According to the year you were born, 1938 full retirement age is 65, 1943 full retirement age is 66, and from 1955 two additional months per year. Every 6 years from 1955 adds one year to the full retirement age. A person born in 1985, 30 years of 2 months a year for a total of 60 months or 5 years, has a full retirement age of 71 (66 + 5). A person that will be born in 2015, 60 years of 2 months a year, will have a full retirement age of 76 (66 + 10).
The retirement age in USA is going up. Americans feel they will not be able to retire earlier and that they will not have enough finances to support a lengthy retirement. When you hear a speech on corruption in retirement funds and 401k plans administration, it only makes sense for the actual retirement age in USA to go up.
Jones, J. M. (2012, April 27). Expected Retirement Age in U.S. Up to 67. Retrieved August 21, 2012, from Gallup Economy: http://www.gallup.com/poll/154178/expected-retirement-age.aspx