Tag: retirement age

As World Runs Short of Workers, a Boost for Wages—and Inflation

Mary Pat Campbell

Link: https://www.wsj.com/articles/as-world-runs-short-of-workers-a-boost-for-wagesand-inflation-11620824675

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Excerpt:

The U.S. population grew 7% between 2010 and 2020, according to census results. The age breakdown isn’t yet available, but a smaller sample by the Census Bureau and the Bureau of Labor Statistics shows that the working-age population — those 16 to 64 — grew just 3.3%. Because the share of those people working or looking for work has shrunk, the working-age labor force grew only 2%, and actually shrank last year. Some of those missing workers will return when the virus recedes. But many won’t: Baby boomer retirements have soared.

Reversing this move would require either a dramatic increase in births, which has eluded countries with more-family-friendly policies, or immigration, which is politically hard.

The demographic squeeze is far more severe in China, which admits almost no immigrants and for years limited families to one child. Tuesday, authorities said the population in China had grown just 5.4% in the past decade. The working-age population — those 15 to 59 — shrank 5%, or roughly 45 million people. When worker shortages began emerging over a decade ago, factories began moving to poorer inland provinces and then cheaper countries including Vietnam. In recent years some indicators suggest jobs are getting harder to fill, though the data might not be nationally representative.

Author(s): Greg Ip

Publication Date: 12 May 2021

Publication Site: Wall Street Journal

Is China’s population shrinking?

Mary Pat Campbell

Link: https://www.economist.com/china/2021/04/29/is-chinas-population-shrinking

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Excerpt:

The Communist Party has long known that, partly as the result of its brutal birth-control policies, China’s population would soon peak and start to shrink. It has been startled, however, by how rapidly that moment has drawn near. Now, it looks as if it might have arrived.

….

There are also indications that China’s total fertility rate (the number of children a woman is expected to have in her lifetime) has dropped faster than previously thought. Chinese planners have assumed a rate of 1.8, but some Chinese scholars (and the World Bank) say it between 1.6 and 1.7. A working paper released in March by China’s central bank suggests the rate is no more than 1.5.

Publication Date: 1 May 2021

Publication Site: The Economist

MassMutual Explores Near-Retiree Knowledge of Social Security Retirement Benefits During the COVID-19 Pandemic

Mary Pat Campbell

Link: https://www.argus-press.com/news/national/article_5ecdc18f-9144-582e-9fd1-aeb1c64c8d90.html

Excerpt:

Just over one-third (35%) of near-retirees (age 55 to 65) failed and another 18% earned a grade of D on a basic knowledge quiz about Social Security retirement benefits, while only 3%, received an A+ by answering all 12 true/false statements correctly, according to the latest MassMutual Social Security consumer poll.

Even more startling, over a quarter (26%) of individuals age 60 to 65 have no idea of the full retirement age.

There is good news, however, and an improving trend.

A large majority (83%) are very knowledgeable about the consequences of receiving Social Security benefits before reaching their full retirement age. A whopping 94% know that if they take benefits before full retirement age, their benefits will be reduced as a result of filing early while 86% know that if they receive benefits before their full retirement age and continue to work, their benefits may be reduced based on how much they make.

Publication Date: 6 April 2021

Publication Site: Argus Press

Ukraine raises retirement age for women to 60 years old

Mary Pat Campbell

Link: http://www.xinhuanet.com/english/europe/2021-04/02/c_139854924.htm

Excerpt:

The Ukrainian government has raised the age of retirement for women to 60 years old since April 1 this year.

The change was due to the law on raising the retirement age for women from 55 to 60 years old, which was passed by the Ukrainian Parliament in 2011.

Now in Ukraine men and women retire at the same age.

The Ukrainian authorities explained that the increase in the retirement age for women was to mitigate the negative consequences of the aging population, and reduce the deficit of the Pension Fund of Ukraine, which at the end of 2020 reached 13.2 billion hryvnia (474.5 million U.S. dollars).

Publication Date: 2 April 2021

Publication Site: Xinhua

The Average Retirement Age in Every State

Mary Pat Campbell

Link: https://finance.yahoo.com/news/average-retirement-age-every-state-150000450.html

Excerpt:

Retiring early seems to be on everyone’s minds these days. The growing popularity of the so-called FIRE movement — short for financial independence, retire early — is a testament to how much everyone seems to be craving a slice of “the easy life.” The good news is that in many U.S. states, what most people would call an “early” retirement is within reach. Although “full retirement age” for Social Security purposes isn’t until age 67, the average retirement age in every single state — with the exception of the District of Columbia — is below 67. On average, retirees in the U.S. hang up their work boots at age 64, according to Money Talks News.

Of course, to truly live a comfortable retirement takes more than desire — it also takes a large chunk of cash.

If nothing else, this study proves two things. First, the state in which you live can play a big role in how early you can retire, as evidenced by the low average retirement ages across wide swaths of the South and Midwest. Next, it takes more than $1 million to have a comfortable retirement in any state in America — or over $2 million in the case of Hawaii and the District of Columbia — so it’s important to work with a retirement advisor or the best 401(k) providers to help boost your savings as much as possible.

Author(s): John Csiszar

Publication Date: 11 March 2021

Publication Site: Yahoo Finance

China’s young and old rail against raising retirement age

Mary Pat Campbell

Link: https://asia.nikkei.com/Spotlight/Society/China-s-young-and-old-rail-against-raising-retirement-age

Excerpt:

The retirement age for employees in the public sector and at state-owned enterprises is set at 60 for men, 55 for female office workers and 50 for female blue-collar workers. This has remained unchanged since around the time of the founding of the People’s Republic of China in 1949, even as life expectancy has risen to more than 80 in urban areas.

The government work report presented to the National People’s Congress in March stated that “the statutory retirement age will be raised in a phased manner” as part of the new five-year plan for 2021 through 2025.

Beijing sees this as necessary to alleviate pressure on the social safety net and head off a labor shortage that could set it back in its power struggle with Washington. But resistance is strong from young graduates concerned about the impact on their career prospects as well as from grandparents expected to care for grand children after retirement. 

Author(s): Iori Kawate

Publication Date: 4 April 2021

Publication Site: Nikkei Asia

China to Raise Retirement Age to Offset Funding Shortfall  

Mary Pat Campbell

Link: https://www.voanews.com/east-asia-pacific/voa-news-china/china-raise-retirement-age-offset-funding-shortfall

Excerpt:

 The current statutory retirement age in China is 60 years for male workers, 55 years for female cadres and 50 years for female workers. Cadre is a general term for civil servants working in the government, public institutions and state-owned enterprises. Labor regulations do not differentiate between male cadre and male workers.

Beijing did not specify a target retirement age. By comparison, the current retirement age in the U.S. is 66, although that depends on the year of birth. The global average was 62.7 years for men and 61.3 years for women, according to an analysis of 70 countries by insurer Allianz SE, reported Bloomberg. 

You of MOHRSS said that the retirement age was set in the early 1950s, when people were expected to live about four decades. In 2019, life expectancy in China was 77.3 years nationwide, with city dwellers expected to keep going past 80 years.

Author(s): Yang Ming

Publication Date: 17 March 2021

Publication Site: Voice of America News

China to raise retirement age in stages – state researcher

Mary Pat Campbell

Link: https://www.pionline.com/economy/china-raise-retirement-age-stages-state-researcher

Excerpt:

China plans to raise retirement ages gradually over a number of years instead of in a drastic one-time change, a government researcher said last week, without providing any detail on when the changes might start.

When the retirement age starts being lifted, it will be by a few months every year, or by a month every few months, according to Jin Weigang, head of the Chinese Academy of Labor and Social Security under the Ministry of Human Resources and Social Security. Mr. Jin didn’t say when the changes would begin, but the current five-year plan calls for “raising the retirement age in a phased manner.”

“People in different age groups will be retiring at different ages,” Mr. Jin said in an interview with the state-run Xinhua News Agency published March 13. “For example, in the first year of the policy’s implementation, female workers who were originally scheduled to retire at 50 will retire one month or a few months after 50.”

Author(s): Bloomberg

Publication Date: 15 March 2021

Publication Site: Pensions & Investments

Consultant: Connecticut could see up to $900M in savings as retirement ‘tsunami’ approaches

Mary Pat Campbell
Consultant: Connecticut could see up to $900M in savings as retirement ‘tsunami’ approaches

Excerpt:

A study of Connecticut’s state government in advance of an expected wave of retirements next year has identified as much as $900 million in potential savings in executive agencies with total budgets of $14 billion, while acknowledging the significant obstacles to making changes in one of the most heavily unionized public-sector workforces in the United States.

The report released Wednesday by the administration of Gov. Ned Lamont says 8,000 of the 30,000 executive-branch employees are eligible to retire by July 1, 2022, when retirement benefits will be reduced under the terms of a 2017 concession deal. A survey found about 70% of the eligible workers were leaning toward retiring.

The highest percentage of expected retirements is among employees responsible for public safety and caring for at-risk children and people with intellectual disabilities and mental illnesses. As such, the exodus poses daunting challenges to maintaining essential services and perhaps offers once-in-a-generation opportunities for fundamental change. 

Author(s): MARK PAZNIOKAS

Publication Date: 31 March 2021

Publication Site: CT Mirror

Vermont lawmakers seek pension reforms to stem funding shortfalls

Mary Pat Campbell

Link: https://www.pionline.com/pension-funds/vermont-lawmakers-seek-pension-reforms-stem-funding-shortfalls

Excerpt:

Vermont lawmakers are pushing a plan to reduce a widening shortfall in the state’s retirement systems by asking teachers and state employees to pay more into their pension plans and work more years.

During a March 24 meeting, the Vermont House Government Operations Committee proposed teachers base contribution rates be raised by 1.25% to 2.25% and that most state employees be increased by 1.1%, according to a proposal posted on the Vermont General Assembly website.

The proposal also bumps up the age at which most workers can qualify for retirement benefits, requiring them to reach full Social Security retirement age, which is currently 66 or 67. Some groups of teachers and state employees can now retire as early as 62 or with 30 years of service.

Author(s): Margarida Correia

Publication Date: 29 March 2021

Publication Site: Pensions & Investments

Vermont lawmakers seek pension reforms to stem funding shortfalls

Mary Pat Campbell

Link: https://www.pionline.com/pension-funds/vermont-lawmakers-seek-pension-reforms-stem-funding-shortfalls

Excerpt:

Vermont lawmakers are pushing a plan to reduce a widening shortfall in the state’s retirement systems by asking teachers and state employees to pay more into their pension plans and work more years.

During a March 24 meeting, the Vermont House Government Operations Committee proposed teachers base contribution rates be raised by 1.25% to 2.25% and that most state employees be increased by 1.1%, according to a proposal posted on the Vermont General Assembly website.

The proposal also bumps up the age at which most workers can qualify for retirement benefits, requiring them to reach full Social Security retirement age, which is currently 66 or 67. Some groups of teachers and state employees can now retire as early as 62 or with 30 years of service.

In addition, employees will receive a lower overall benefit as it would be based on the average of their seven highest consecutive years of salary rather than the three highest as is now the case, according to the proposal.

Author(s): Margarida Correia

Publication Date: 29 March 2021

Publication Site: Pensions & Investments

China says working on plan to raise retirement age

Mary Pat Campbell

Link: http://global.chinadaily.com.cn/a/202102/26/WS6038c7efa31024ad0baab6c7.html

Excerpt:

You said raising the retirement age in a gradual manner is a major decision made upon China’s overall economic and social development, which will improve the use of China’s human resources, enhance the sustainability of the social insurance system and ensure basic living of the people.

Currently, in China, the retirement age for men is 60, while for women it is 55 for white-collar workers and 50 for blue-collar employees.

With great social and economic progress taking place in China, the retirement age, which was set in the 1950s, is relatively low, according to You, who cited longer average life expectancy as well as changes in demographic structure and the supply and demand of labor.

Publication Date: 26 February 2021

Publication Site: China Daily