Why we shouldn't raise the retirement age?

Arguments against raising the retirement age center on increased poverty risk for low-income workers, reduced Social Security benefits for all, potential health issues from working longer, and hindering younger workers' career progression, disproportionately affecting those with lower life expectancies. Opponents argue it creates a two-tiered workforce and unfairly penalizes physically demanding jobs, with richer individuals often able to work longer while the poor suffer the most from benefit cuts, say experts and advocacy groups.

Why shouldn't the retirement age be raised?

The reality is that raising the retirement age is going to result in more poverty and homelessness for elderly people who simply can't compete with younger workers. Age discrimination is rampant, and many older people have health issues that limit what kind of jobs they can even do any more.

What are the disadvantages of raising the retirement age?

The Downside of Up

The Health Dimension: An underrated aspect of the retirement age discussion is the impact on health. Working longer can be a source of stress and physical wear, which often affects older employees more acutely.

Why should retirement age be lowered?

It reduces inequality. Lowering the retirement age could prevent low-income and manual workers from being disproportionately affected, particularly if they work in physically demanding jobs, which will become harder as they age. It reduces demand for healthcare and social care services.

What happens if the retirement age is raised?

The SSA says payouts could be reduced by 30% (or 35%, if you're receiving a spouse's benefit). Once you reach full retirement age, or FRA, your monthly benefits will not face a permanent reduction. If you wait longer to apply, up to age 70, you can receive a higher payment.

Ben Shapiro: We will 'go bankrupt' if we don't raise retirement age

Is the retirement age going to change in 2025?

For 2025, the Social Security Full Retirement Age (FRA) increases for those born in 1959, reaching 66 years and 10 months, up from 66 years and 8 months in 2024, while those born in 1960 or later will reach their FRA of 67 years starting in 2026. This gradual increase, set by a 1983 law, allows people born in 1959 to claim full benefits starting in November 2025, with benefits reduced if claimed earlier. 

Why is retiring at 62 a good idea?

People retire at 62 for more time to enjoy life, pursue passions, reduce work stress, and spend time with family, often using the earliest eligibility for Social Security to start income, though this comes with reduced monthly benefits; other reasons include health issues or a desire for a simpler life, though financially, delaying benefits (to age 70) can significantly increase lifetime payments.
 

What is the happiest age to retire?

While about a third say the ideal age is between 60 and 64 (36%), substantial shares think it's best to retire between 65 and 69 (21%) and at 70 or older (22%).

Can I retire at 62 with $400,000 in 401k?

You can retire at 62 with $400k if you can live off $30,200 annually, not including Social Security Benefits, which you are eligible for now or later.

Are Republicans going to raise the retirement age?

Raising the Retirement Age

Raising the FRA has been proposed by Republicans before, name in March 2024 by the Republican Study Committee, which said "modest adjustments" to the retirement age for future retirees to reflect rising life expectancy.

How many Americans have $500,000 in retirement savings?

Only a small percentage of Americans have $500,000 or more in retirement savings, with recent data (late 2025/early 2026) suggesting around 7% to 9% of households have reached this milestone, though this varies by source and can be skewed by high-income earners or home equity. For instance, one study showed only 4% of all households had $500k-$999k, and 3.1% had $1M+. 

Is it better to collect social security at 62 or 67?

It's better to collect Social Security at 67 (Full Retirement Age - FRA) for a higher, unreduced monthly payment, but claiming at 62 (earliest age) can be better if you need income sooner, have health issues/short life expectancy, or have other robust savings, though it means significantly lower payments (around 30% less at 67 FRA). Delaying past 67 (up to age 70) further increases benefits, making waiting generally best for maximizing lifetime income if you live long, but 62 is for immediate needs or specific financial strategies like investing those early checks. 

What does Suze Orman say about retirement?

Orman recommended making the most of retirement accounts like 401(k)s and IRAs. She suggested contributing enough to get any employer match, as this is essentially free money. For those closer to retirement, taking advantage of catch-up contributions allowed for individuals over 50 can be a smart move.

What is Gen Z's retirement age?

Gen Z ideally wants to retire around age 59, but realistically expects to work until age 67, facing financial hurdles like inflation and high costs, though some research suggests they are saving more and might retire earlier (around 61) than older generations, with many planning partial work in retirement. They're navigating a tough economic landscape but are using new tools like Roth 401(k)s and embracing financial ideologies like FIRE (Financial Independence, Retire Early) to build wealth, despite wanting shorter workdays and working less if possible. 

How many people have $1,000,000 in retirement savings?

Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.

How much Social Security will I get if I make $60,000 a year?

If you consistently earn around $60,000 annually over your career, you can expect a monthly Social Security benefit of roughly $2,100 to $2,300 at your full retirement age (FRA), but the exact amount varies by your birth year and claiming age; for instance, at FRA, it's around $2,311 based on 2025 bend points, while claiming at 62 yields less and claiming at 70 yields more, with an official estimate available on the Social Security Administration (SSA) website. 

How long will $750,000 last in retirement at 62?

With careful planning, $750,000 can last 25 to 30 years or more in retirement. Your actual results will depend on how much you spend, how your investments perform, and whether you have other income.

Can you live off the interest of $500,000?

"You can live off $500,000 in the bank and do nothing else to make money, because you can make off that about 5% in fixed income with very little risk. Or you can make 8.5 to 9% in equities too, if you're willing to ride the volatility."

What is the average 401k balance for a 65 year old?

For a 65-year-old, the average 401(k) balance is around $299,000, but the more representative median balance is significantly lower, at about $95,000, indicating many high savers pull the average up, with balances varying greatly by individual savings habits, income, and other retirement accounts. 

Can I live off $5000 a month in retirement?

To retire comfortably, many retirees need between $60,000 and $100,000 annually, or $5,000 to $8,300 per month. This varies based on personal financial needs and expenses.

What is the 3 rule for retirement?

The "3% Rule" for retirement is a conservative withdrawal guideline suggesting you take out no more than 3% of your initial retirement savings in the first year, then adjust for inflation annually, aiming to make your money last longer than the traditional 4% rule, especially useful for early retirees or those wanting extra safety from market downturns and inflation. Another "rule of thirds" strategy suggests dividing savings into three parts: one-third for guaranteed income (like an annuity), one-third for growth, and one-third for flexibility. 

Do early retired people live longer?

The connection between retirement age and longevity shows that retiring later often increases life expectancy due to the cognitive, physical, and social benefits of continued work. Early retirement may reduce these engagements, potentially impacting health negatively.

What is the smartest age to retire?

There's no single "smartest" age, but 65-67 is a common sweet spot for maximizing benefits (full Social Security, Medicare eligibility), while many Americans think 63 is ideal but often retire around 62-64 due to health or finances. The truly best age depends on your financial security, health, lifestyle goals, and desire to work, with some experts suggesting delaying Social Security to 70 for maximum payout, making late 60s a financially optimal time to retire, even if you start earlier. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

What are the biggest mistakes people make in retirement?

The top ten financial mistakes most people make after retirement are:

• 1) Not Changing Lifestyle After Retirement. ...
• 2) Failing to Move to More Conservative Investments. ...
• 3) Applying for Social Security Too Early. ...
• 4) Spending Too Much Money Too Soon. ...
• 5) Failure To Be Aware Of Frauds and Scams. ...
• 6) Cashing Out Pension Too Soon.