According to US News and World Report, the Senate Finance Committee is discussing the future plans of American seniors. Those nearing retirement may want to postpone it for a while in order to help themselves and the country. Experts say if Americans can work longer they’ll have a dramatic impact on the economy, Social Security and, of course, their own personal financial situation. Here are six reasons why leaders are hoping seniors push off retirement.
It will Help Social Security: The more seniors who work past the age of 62 the healthier the Social Security system will be. According to research by Stephen Goss, chief actuary of the Social Security Administration, a ten percent increase in the labor force among those who are over the age of 62 would reduce Social Security deficits and add another year to the program’s life. Right now it’s estimated to dry up by 2037, but more seniors working would push that to 2038.
It will Help Influence Young Workers. Some employers believe that the longer older workers stick around, the better. They’ll have a positive influence on younger employees. “The country needs them to work to sustain economic productivity and growth and to fill vital roles that demand their skills and experience,” Marc Freedman, founder and CEO of Civic Ventures and author of Encore: Finding Work That Matters in the Second Half of Life, told US News and World Report.
It will Help Communities. If seniors delay playing Bridge and watching The Price is Right, they’ll have more time to help others by taking on jobs in public service of non-profit areas.
It will Help the Economy. If seniors work longer they’ll have more money. And the more money they have the more they are likely to spend which helps the economy. “An increase in the number of these workers would increase federal and state income tax revenues,” Senator Max Baucus, a Montana Democrat, told US News and World Report.
It will Offer Balance. Working later in life doesn’t have to mean putting in long hours at a job you don’t like. Seniors will be able to find balance in life by gradually transitioning into retirement. “Workers can reduce their hours of work at their principal job or work only seasonally. Their current firm can rehire them after they have retired for a period of time,” Baucus told US News and World Report. ”The traditional view of retirement as a permanent and complete exit from the labor force and from a full time job held since middle age does not describe most workers today,” Nicole Maestas, an economist and group manager at RAND Corporation, told reporters. RAND statistics show that one out of four 65-year-olds are self-employed.
It will Give Seniors Financial Security. Recent studies show that more Americans will run out of money during retirement. But postponing retirement means a bigger earning potential and less of a chance that you’ll actually run otu of money. “Financial planners are increasingly advising their clients: The best way to rescue personal finances is to work a few years longer,” Freedman told US News and World Report.
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