Is 80 the new 65?
Thanks to the Great Obama Depression, 80 might be the new 65.
American International Group Inc. (AIG) Chief Executive Officer Robert Benmosche said Europe’s debt crisis shows governments worldwide must accept that people will have to work more years as life expectancies increase.
“Retirement ages will have to move to 70, 80 years old,” Benmosche, who turned 68 last week, said during a weekend interview at his seaside villa in Dubrovnik, Croatia. “That would make pensions, medical services more affordable. They will keep people working longer and will take that burden off of the youth.”
The crisis, now in its third year, threatens to destroy Europe’s 17-nation currency union as Greece contemplates exiting the euro and Spain sees its bond yields rise and banking industry falter. German Chancellor Angela Merkel hardened her opposition to joint debt sharing in the euro region as U.S. President Barack Obama singled out Europe’s leaders for not doing enough to arrest the crisis.
Greece abandoning the euro could be a disaster for the country and Europe must work to keep that from happening, said Benmosche, whose company was the world’s biggest insurer before it took a U.S. bailout.
“People in Greece have to see there is no easy way out of this” and the government must get them to work longer, he said in the June 2 interview on the Adriatic coast. “If not, and if they go to their own currency, I think they will see huge inflation and it will be devastating for people on fixed incomes.”
Greece, where the average life expectancy is 81.3 years, has an effective retirement age of 59.6, among the lowest in Europe, according to data compiled by Bloomberg. French President Francois Hollande, the Socialist who was sworn in last month, has pledged to cut the retirement age to 60 from 62 while increasing corporate and bank taxes and introducing a 75 percent levy on earnings of more than 1 million euros ($1.2 million).
Retirement is a phenomom that has only been around for a couple of generations. A century ago, people worked until they either died or could no longer physically work.
When Social Security was introduced, the average life expectancy was only 63 and no one could start drawing benefits until 65. The numbers worked.
Since then, American life expectancy has steadily grown until now it is well into the 70s.
The numbers no longer work.
The end result of the Great Obama Depression may well be Americans staying in the work force well into their 70’s.
Americans will decide whether we like this change or not but no matter whether we like it or not, it will probably be our new reality.
I would be GLAD TO WORK TIL I AM 80, BUT FIRST TELL ME THIS: WHERE ARE THE JOBS??? This statement: Keep people working longer??is a Joke---
Keep them working longer in which jobs?? I don't see any jobs?? I see a newspaper that shows two lines (one page) of atleast a total of 10 jobs............ maybe if I am an illegal alien and willing to work for real low wages (again, if I can Find a Job) and I am living in a room with 8 other illegal aliens (cause that is the only way I can afford to stay here) then maybe I might be able to find a job or if I am willing to work in the migrant fields (which I do have experience) but I don't know if my back can take it anymore. I am a senior citizen and I have back problems.
SO AGAIN, I ASK YOU, WHAT JOBS?? I have a friend that has been looking for work for more then 2 1/2 yrs.
Look for a need that several people or organizations have that you can fulfill. Start your own business fulfilling that need.
Don't wait for opportunity to knock on your door. Kick the door open, seize opportunity by the throat, and drag it kicking and screaming through the door and into your life.
Traditional jobs (9-5 office-type, manufacturing, and so forth) are disappearing, but if you are thoughtful, creative, and (perhaps) willing to be retrained to a different skill set, the jobs are out there. You may have to create that job by starting your own business and pounding the pavement to find customers, but the jobs are out there.