Social Security: Retirement

According to Wikipedia, the idea of a fixed retirement age is being introduced during the 19th and 20th centuries. Before then, the absence of pension arrangements meant that most workers continued to work until death, or relied on personal savings or the support of family or friends. Nowadays, the retirement age varies from country to country, but it is generally between 55 and 70. In some countries, this age is different for male and females. Sometimes certain jobs, the most dangerous or fatiguing ones in particular, have an earlier retirement age.

In my opinion, people should be encouraged to remain in paid employment until they reach the age of 62. However, Christian E. Weller (2000) argued that there are some reasons why an individual choose to retire before the age required for unreduced Social Security retirements benefits. Some of these reasons include poor health, an individual’s wealth, or retirement savings that allow for early retirement (Crimmins et al. 1996, in Weller 2000).

The first reason is that everyone’s situation and life is unique. Sometimes a worker’s health has already deteriorated to a point where working additional years is not possible. This is especially true for low-income and blue-collar workers, women, and African Americans (Garrett 1995; Iams and McCoy 1991; SSA 1986, in Rose and Larimore 2001). In this point, the workers have no other choice to retire, even if they have not reached the age of 62. However, individuals who are in excellent health and who has a family history of longevity would generally benefit from delaying retirement, especially if they still enjoy their jobs (Rose and Larimore, 2001).

Second, we may also have to consider other important factors, for instance an individual’s wealth, sources of retirement incomes, and desire or need to continue employment after early retirement. Some people think that they do not have to work until the retirement age because they have adequate savings. Other people may be forced to retire before reaching the age of 62 due to employment downsizing or health condition. In this case, they may need to work longer to avoid retirement in poverty, but sometimes their health may prohibit them for doing so. Another consideration is the effect of early retirement on an individual’s current fringe benefits such as health insurance, dental insurance, long-term care insurance and life insurance.

References
Rose, Clarence C. and L. Keith Larimore (2001) Social Security Benefit Considerations in Early Retirement.

Weller, Christian E. (2000) Raising the Retirement Age: The Wrong Direction for Social Security.

Retirement (2008, April 18) [Online article], Retrieved April 19, 2008 from the World Wide Web: http://www.wikipedia.org/Retirement.htm