No longer are people retiring at the usual retirement age of 65. In fact, the realities that made 65 years the normal retirement age are fast fading and a new retirement reality is taking over the society. 65 was established as the retirement age way back in 1930s when the Social Security legislation came into effect. The idea behind retirement was to get the old workers out of the workforce and make room for younger workers so that economy could get back on track.
From 1930s to 2008, the economic realities are different and the factors that applied during the 1930s and later, making 65 the retirement age, are no longer prevalent or relevant. A few years down the line the retirement factors that are present today will no longer apply and the cycle of change is, thus, never ending.
Earlier, right after World War II, retirement benefits introduced by employers was a way of attracting workers from farms into factories and from factories into offices. However, this is no longer required and more and more employers are doing away with company-sponsored retirement plans; and from the looks of it is seems that company paid pensions are thing of past.
It has also been seen that the baby boomers, who are now forming the vast pool of retired workers, did not do enough for retirement. One thing that the baby boomers did not envisage is retirement and many of them did not plan for the future. Hence, retiring at 65 is no longer feasible and it is an option that only people who have saved enough to sustain themselves adopt. In addition, those who have saved have invested heavily in overvalued stocks only to find out that their net worth is a lot less after stock prices fell dramatically.
About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality fiancial tips like :
Tutorial on Globalization and International Business and Thailand Shipping Company
Article Source: http://EzineArticles.com/?expert=Pauline_Go
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