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Denmark passed to raising the retirement age Up to 70 – What makes it the highest retirement age in Europe.
But for the US it may be difficult Follow its leading.
The new change in Denmark will be extended to public retirement exits since 2040. Since 2006, the country has adjusted its retirement age to reflect life expectancy changes.
There is no official retirement age in the US. At the age of 65, people are entitled to lighting Medicare. Aged 66 to 67 years, depending on the date of birth, the person is entitled to Complete Social Insurance Benefits Based on their salary record.
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However, those people who are waiting for up to 70 years to qualify Full retirement age. .
But few are waiting for up to 70 years to demand benefits. While more than 90% of people will benefit from social insurance delay before this age, only about 10% in fact, according to data 2023 paper from the National Bureau of Economic Research.
Although the age of 70 is not the official retirement age, it is a threshold based on the definition of economists – an age at which you cannot do more benefits, according to Teresa Hillarduchi, economist and professor at a new social research school.
“The US has passed 70 years in the US, and we had the highest retirement age than any other country for years,” Gilarduch said.
Retirement age in the US on discussion
However, there is an effort to officially do the US retirement age above.
In 1983 Congress taken by law Gradually enhance full retirement age for social insurance From 65 to 67 years. These changes are still in stages, and people were born in 1960 and later subjected to a higher 67 -year retirement age.
In December, en correction Rund Paul, R-KY, was introduced to enhance the full retirement age to 70 years.
Bill, Law on Social Security Justicewas recognized by law. However, the proposal to increase the retirement age was lifted.
Paul urged to raise the retirement age by three months a year until he reached the age of 70 to reflect the current life expectancy. The change would have created almost $ 400 billion for the program, while the Social Insurance Law added a $ 200 billion program to the program over 10 years.
Other Republican proposals They also called for raising the retirement age.
The Social Insurance Administration is facing the onset Dates of exhaustion For trust funds it rests to help pay benefits. To help resolve this issue, legislators may consider raising taxes, reducing preferences or combining both. Increasing retirement age is an effective reduction in help.
Like the changes taken in 1983, raising the retirement age can be on the menu.
Denmark’s move “Sends signal” to work longer
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Experts say the transition of Denmark will increase the retirement age to 70 years.
In 2023, research A.
In 2025, residents of Denmark can retire with public pensions when they are 67 years old. This will gradually increase to the age of 70 as of 2040.
“It just means that today young people will have to work longer before they are able to retire,” said Jasper Rangud, a finance professor at the Copenhagen Business School and a co-director of their pension research.
According to Rangvid, this retirement age affects anyone who is entitled to the main state retirement income. However, those who have private pensions can retire earlier.
“Nothing that prevents you from retirement earlier if you have funds and funds for that,” Ringuid said.
Denmark offers early retirement options, including early pensions. However, raising the retirement age reports, Ringuid said.
“He sends a signal that it would be the position that you have to work longer,” said Ringuid.
Increasing retirement age in the US may be problematic
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Retirement experts say the increase in the US retirement age cannot present the same decision for the population as in Denmark.
Denmark has much more “equal society” when it comes to income, wealth, education and life expectancy compared to the United States, said Alicia Mannenel, senior adviser to the Boston College.
In the US, government data shows a big difference between life expectancy for those below and high income quartels, Mannel said.
“If you have such a big, big difference, any increase in retirement age will be stupid,” Mannenel said. “It would be very harmful to those below that have already received benefits for a shorter period of time.”
According to Andrew Biggs, a senior employee of the US Institute of Enterprises, the retirement age policy may also be problematic for another reason – it will take time to stop the changes.
For example, Congress can take a higher retirement age, which begins to take effect in 10 years, and then it will take 30 years so that people with higher retirement age go through the system.
Moving from age from 67 to 69 years, it would make savings for the program ultimately, “they will need money now,” Biggs said.
Retirement age and economics
According to Rangud, the well -being reform that began in Denmark in 2006 – causing the retirement age to increase with life expectancy – was “extremely important” for the country’s economy.
“We mostly do not have a state debt,” Ringuid said.
Unlike this, the US is facing high public debt that requires a country Spend more for interest payments than the military.
The budget legislation that is currently being considered in Congress can add According to estimates, 3.3 trillion To the debt, including the interest, the Committee on the responsible federal budget reports.
This package does not affect social security and its retirement age. However, other proposals suggested that the change, the decline, which would be a “rather powerful lever” to help resolve the program financing, said Mannel.
One suggestion killed According to the actors of the Social Insurance Administration, which increases in full retirement up to 70 years, it eliminates 26% of the 75-year shortage of the program.
