Denmark raises the retirement age to 70; We may follow us

Denmark moved to increase the retirement age To 70 – which makes it the highest retirement age in Europe.

However, it may be difficult for the United States Follow its progress.

The new change in Denmark will be applied to the retirement of public pensions that begin in 2040. Since 2006, the country is amending the retirement age to reflect the changes in the average life expectancy.

The United States does not have an official retirement age. At the age of 65, individuals become eligible to cover medical care. At the age of 66 to 67, depending on the date of birth, the individual becomes eligible Full social security benefits Based on their profit record.

More personal financing:
The Republican Tax Bill in the House of Representatives prefer the rich
Some legislators want to postpone tax gains in exchange for investment funds
What does the Republican Party budget bill mean in the House of Representatives for your money

However, these individuals who are waiting until the age of 70 to demand the benefits of retirement for social security, will get the largest batches – an increase of 8 % for each year after that Full retirement age. (Full retirement is when the beneficiaries are qualified to get 100 % of the benefits they obtained based on their work records.)

After a few people, they are waiting until the age of 70 to demand the benefits. While more than 90 % of individuals will benefit from social security delay until this age, only about 10 % do so, according to 2023 sheets From the National Office for Economic Research.

While the age of 70 is not the official retirement age of the United States, the threshold based on the definition of economists – the era in which you cannot accumulate any other benefits, according to the Tersa Gilaardii, an economist at work and professor at the New School of Social Research.

“In the United States, it was 70 for decades, and we had the highest retirement age from any other country for years.”

In 1983, Congress Legislation has been approved To raise the age of full retirement for social security From 65 to 67. This change is still floundering a day, with people born in 1960 and subsequently subject to the 67th retirement era.

In December, a amendment Senator Rand Paul, R-Ky, was presented to raise the full retirement age to 70, during the last minute efforts to enhance legislation that increased the advantages of social security for some public retirees.

The bill, and Social Security Equity LawThe law was voted. However, the proposal to raise the retirement life has been dropped.

Paul called to raise the retirement age for three months annually until he was 70 years old, to reflect the average life expectancy. The change had created approximately $ 400 billion of savings for the program, while the law of social security justice added $ 200 billion of costs to the program over 10 years.

last Republican proposals Likewise called for the lifting of retirement.

The Social Security Administration faces looming on the horizon Delivers drainage To get the confidence you depend on to help pay the advantages. To help solve this issue, legislators may consider raising taxes, lowering benefits, or a mixture of the two. Raising the retirement age is actually lowering benefit.

Like the changes in 1983, raising the retirement age in the list may be.

In 2023, research The Danish Center for Social Science Research has found that increasing healthy and educational resources for children from 60 to 70 years, in addition to the highest demand for older workers, could indicate future retirement increases.

In 2025, Denmark residents can retire with public pensions when they are 67 years old. This will gradually increase to the age of 70 as of 2040.

“This means simply that young people today will have to work for a longer period before they can retire,” said Jiber Rangid, a professor of finance at Copenhagen College of Business and co -manager of the pension research center.

This retirement age affects everyone who is entitled to obtain basic pensions income, according to Rangvid. However, those who have special pension savings may retire earlier.

“There is nothing that prevents you from retirement early if you have the money and means to do this,” said Rangfved.

Denmark offers early retirement options, including an early pension. However, raising the retirement era transmits a message, according to Rangev.

“He sends a signal that this is what the positions want, and it should work for a longer period,” said Rangev.

On the other hand, the United States faces high national debts that require the country Spend more On the interest payments from the army.

Budget legislation can currently add study in Congress It estimates 3.3 trillion dollars For debts including interest, according to the committee on the responsible federal budget.

This package will not touch the social security or retirement era. However, other proposals have suggested this change, a benefit reduction that will be a “very strong crane” towards helping to solve the program financing problems, according to Monnell.

One suggestion register Through the administrative actuarians of the Social Security Administration, I found that raising the full retirement age to 70 would lead to the elimination of 26 % of the 75 -year -old deficiency in the program.