Raise Retirement Age Now, Say Actuaries

One attribute of increases in human longevity is that the length of time that seniors are expected to live past retirement has been increasing. Even though people are living longer (since 1940 men are now living on average five years longer), the age of customary retirement has been relatively fixed. The result is that the economic assumptions for retirement--especially in the area of entitlements--are quite out of date. No one knows this better than the people who calculate life spans for a living.

The American Academy of Actuaries issued a policy statement suggesting the immediate increase of retirement age in order to avoid major disruptions to Social Security. The actuaries noted that raising the retirement age by itself wouldn't be enough but it was a good place to start. Similar to the last U.S. presidential election, Social Security will be a major issue. Defying the advice of the actuaries, Senator Obama has said that he would not raise the retirement age and Senator McCain hasn't said whether or not he would do so.

Middle age Americans are strongly advised to initiate financial planning for retirement. This is more than just setting up proper savings plans (highly recommended). It also means thinking about what type of work that they might want to do much later in life. For those who enjoy their careers, retirement might mean cutting back on work as opposed to total cessation. Other suggested ideas are looking to see whether current hobbies could be turned into part-time jobs in retirement--eBay stores, consulting, etc. The nice thing about being in your 40s or 50s and thinking about these things is that you have 15-25 years to get ready but that doesn't mean you should wait. Take advantage of the time, don't squander it.