The Boomers Are Retiring: Is 65 Still the Right Age?

 

As more and more baby boomers reach the traditional retirement age of 65, there's an increasing debate over whether it's still an appropriate age to retire. The issue has become particularly contentious when it comes to professions such as airline pilots, where the mandatory retirement age is currently set at 65. 

However, this question isn't just affecting pilots, but all Americans reaching that age and beyond, as they face decisions about whether to retire or continue working. There are a number of factors to consider, including health and financial security. Ultimately, the decision of when to retire is a highly personal one, and there's no one-size-fits-all answer. 

But as more and more Americans reach traditional retirement age, it's important to consider all the factors involved and make the best decision for each individual. And as the retirement age continues to evolve, it's likely we'll see more and more people working past 65, whether they want to or not. This will have a significant impact on the workforce and the economy as a whole. So, the question of retirement age is not just about individuals, but about society as a whole.

It is debatable to raise the retirement age in the United States and other countries. Pension reforms that raised the retirement age from 62 to 64 in France last year provoked strong opposition.

A bill to reauthorize the Federal Aviation Administration in the United States that addresses the retirement age of pilots is anticipated to be marked up by the Senate. The retirement age was raised to 67 in the House version of the bill.

An FAA representative informed Congress this week that the organization would seek statistics to back up the decision to raise the age. The union representing airline pilots, the Air Line Pilots Association, is against raising the age beyond 65.

However, a group of pilots known as Raise the Pilot Age has banded together to advocate for extending their employment eligibility until 67 years of age.

The nonprofit's president, Barry Kendrick, stated, "Bottom line, I want to keep flying."

‘I’ve taken a 60% pay hit’

Kendrick, an experienced pilot who recently turned 66, left a major airline after operating Boeing 777s all over the world.

Kendrick continues to be able to operate smaller aircraft. However, he cannot go with the well-known airlines that typically appear on tickets purchased by customers. He added that those businesses usually pay the highest.

"To do what I'm doing now, I've taken a 60% pay hit," Kendrick remarked.

He recently completed the mental and physical exams needed to fly.

He remarked, "A smaller airplane is a different environment." "Physically, that is more demanding than what I was doing before."

Since Kendrick won't receive his full retirement benefit until he reaches nearly 67 years old, he has not filed for Social Security retirement benefits. Although he may choose to collect his benefits immediately, doing so would result in a permanent reduction.

Federally mandated retirement ages do not typically apply to other occupations.

Congress has recommended that workers wait until they reach the age of 67, which is the new Social Security full retirement age. If retirement beneficiaries wait until they are 70 years old, their benefits will be largest.

The retirement age regulations, which were implemented in 1983 and are still being phased in today, could alter, according to experts.

Social Security has an impending deadline for making reforms. It is anticipated that the program's total trust funds will exhaust in 2034. The Social Security Administration projects that the retirement fund will run out earlier, in 2033.

If nothing is done by those deadlines, beneficiaries will have their benefits reduced by more than 20%.

‘We have to do this now’

The Social Security shortfall is a serious issue, and lawmakers will need to make some tough decisions to address it. One option would be to raise the retirement age, which would effectively reduce benefits by requiring people to work longer before they can claim them. 

While this would improve Social Security's finances, it would also result in a reduction in lifetime benefits for everyone, with the biggest impact on those who retire at the earliest possible age. It's also worth noting that any changes to Social Security will need to be phased in gradually, to give people time to adjust. 

And the sooner we start making these changes the better, according to experts. "We have to do this now," says Jason Fichtner, a former Social Security Administration official. "We probably have a four-year window, being optimistic, to really start making plans." The bottom line is that Social Security's finances are in trouble, and we need to start making changes now to ensure that the program is there for future generations.

The outcome of the 2024 presidential election may have a significant impact on the future of Social Security. While some candidates have suggested raising the retirement age, others have vowed to protect the program as it is. In the meantime, Congress has made changes to required minimum distributions, or RMDs, that may have a positive impact on retirement savings. 

These changes could potentially encourage people to work longer and live more comfortably in retirement. However, it's important to keep in mind that not everyone has the same opportunities to extend their careers, and Congress will need to take this into account when making decisions about the future of Social Security. It's a complex issue, and there's no easy solution. 

But it's clear that something needs to be done to ensure that the program remains solvent and provides a secure retirement for future generations.