Comparison of Retirement Ages and Social Security Systems in the US and Europe
Are you worried about the future of Social Security and the retirement age in the United States? You’re not alone. With potential cuts to benefits and uncertainty about the system’s future, many working Americans are feeling anxious about their retirement plans.
But how does the U.S. compare to other countries when it comes to retirement age and benefits? Let’s take a look at five European countries and see how they stack up against the U.S.
In the United States, the full retirement age is 67 for those born in 1960 or later. This means that the average American can expect about a decade of full retirement since the average life expectancy is 77.5 years. The U.S. scores a 63 on the Mercer Index, which benchmarks retirement income systems around the world.
France recently raised its retirement age to 64 for those who have worked for at least 43 years. With an average life expectancy of over 82, France is just behind the U.S. on the Mercer Index with a score of 62.
The United Kingdom has a retirement age of 67 for those born after April 1960. With a Mercer Index score of 73 and an average life expectancy of 81, the UK is doing better than the U.S. in terms of retirement benefits.
Norway has a retirement age of 67, similar to the U.S., but offers pension pay-outs starting at age 62. With a Mercer Index score of over 74 and an average life expectancy of 83, Norwegians may have more years to enjoy retirement.
Spain has a retirement age of 66 and an average life expectancy of 83. However, the pension system in Spain leaves something to be desired, reflected in its Mercer Index score of 61.
Germany also has a retirement age of 66, with plans to raise it to 67 by 2031. With a Mercer Index score of 66.8 and an average life expectancy of 80-81 years, Germany is on par with the U.S. in terms of retirement benefits.
As you can see, the retirement age and benefits vary greatly from country to country. If you’re concerned about your retirement savings and future, it may be worth considering how other countries approach retirement planning. Whether you’re planning for retirement or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need.
