The cover story of Friday’s edition of The Economist is “70 or bust!”. This influential weekly newspaper argues that “current plans to raise the retirement age are too timid. Governments must go much further.”
By further, it proposes 70, arguing that life expectancies of the typical 65-year old has improved by four or five years in the past forty years.
By raising the retirement age the paper proposes a threefold benefit; workers receive more years at higher incomes, the government receives further tax revenue, and a later retirement should lead to a faster growing economy.
It’s clear that our clients still envisage 65 as an aspirational average retirement age. It is not uncommon for some some individuals to retire at 60, or even younger. We’ve certainly noticed some reticence to retire later, but ultimately each individual will be dependent on what they need, and to what they aspire.