For years, experts have been calling on the government to raise the retirment age, as a way of extending the life of Social Security Trust Fund, and to maintain the productivity of the nation. Just in August, a group of actuaries brought up the urgency of the issue. But fearful of the AARP’s mighty election-day clout, politicians are loathe to touch the issue. Both of the candidates running for President say they have no plans to touch this “third rail”. Right now, depending on your year of birth, the age for collecting full benefits is between 65-67.
So here’s the good news: Regardless of what the government does, the market’s slow-motion crash has pretty much forced the issue. Everywhere you look, people are talking/worrying about postponing retirement. It’s certainly must be a bitter disappointment to those who had been planning on retiring soon, who now realise that they must work for a few more years. But in terms of the overall economy and protecting our entitlement programs, the market has just now done what politicians didn’t have the guts to do themselves.