Retirement age

Retirement age refers to the age at which a person is expected or required to cease work and is usually the point at which they may be entitled to receive superannuation or pension benefits.

Overview

The concept of retirement age is a relatively modern one, largely a 20th-century phenomenon. Prior to this, the elderly would work until they were physically incapable, or they would rely on their families for support. The introduction of social security systems in many countries during the 20th century provided a safety net for the elderly, allowing them to stop working at a certain age.

Determining Factors

The retirement age varies from country to country but it is generally between 60 and 70 years. Several factors influence the determination of retirement age including life expectancy, the nature of work, and government policy. In some countries, the retirement age is increasing as life expectancy increases.

Retirement Age by Country

Different countries have different retirement ages. For example, in the United States, the full retirement age for Social Security is 66 for people born in 1943-1954, and it will gradually rise to 67 for those born in 1960 or later. In Australia, the retirement age is 67. In Germany, the retirement age is set to increase gradually from 65 to 67 over the next few years.

Early and Late Retirement

Some people choose to retire before the official retirement age, known as early retirement. This is often made possible by private savings, company pensions, or state benefits. On the other hand, some people choose or need to work beyond the retirement age, known as late retirement. This can be due to financial necessity, a desire to stay active, or a love for their work.

Impact of Retirement

Retirement can have various impacts on individuals. It often involves a significant lifestyle change, and the transition can be difficult for some people. It can also have significant financial implications, as individuals must rely on savings, pensions, or social security rather than a regular salary.

See Also

• Pension
• Superannuation
• Social Security
• Early retirement
• Late retirement