How Much Pension can You Receive After Retirement? (1)

In the United States, the normal retirement age is 67 and early retirement is 62. The United States encourages late retirement: if a person chooses to retire at or after age 70, they can receive 132% of their pension each month.

Due to the flexibility of the US retirement system, many seniors choose to postpone their retirement, and they often see many seniors still working in various service industries, private companies, and government departments.

American retirement policy has three levels

1. Early retirement

You can start receiving your retirement pension at age 62, but there is a 30% reduction, and the reduction will be less for each month you postpone.

2. Normal retirement

Depending on the date of birth, the United States Social Security Administration has set different normal retirement ages. For example, for people born before 1937 and 1937, the retirement age is 65 and for those born between 1943 and 1954, the retirement age is 66, 1960. For people born after 1960 , the retirement age is 67 years. Those who retire before the normal retirement age can receive a full pension.

3. Late retirement

Those who choose to defer retirement can also get paid income (deferred retirement credits) based on the initial pension. If your normal retirement age is 66 and you decide to retire at 67, you can receive 108% of the pension each month. If you choose to retire at or after 70, you can benefit from it every month. At 132% of the pension.

This design of the gradual and voluntary retirement system allows people to choose according to their own circumstances and to increase the share of retirement pensions, especially for the incentive benefits of deferred retirement, which encourages Americans to a certain extent. measured. Delay retirement.

In the United States, people choose to postpone their retirement for many reasons. Some people like to work and are willing to use their waste heat. More people will earn more money to live a more stable and prosperous old age. US Labor Office data shows that in 2013, 24% of American men over 65 were still working and 15% of women over 65 were still working.

The current phased retirement system in the United States was stipulated by relevant laws passed by Congress in 1983, which effectively alleviated the lack of Social Security funds in the 1970s for some time. However, by 2010, the US social security program will fail to make ends meet for the first time since the 1983 reform. It is expected that by 2033 it will be faced with the dilemma of "bankruptcy of social security". For this reason, there is also a debate in the United States about whether to "raise the retirement age".

Grassley, chairman of the US Senate Finance Committee, once suggested raising the retirement age for Americans to 69. According to calculations, if the retirement age is raised to 68, it will reduce the gap in U.S. social security funds by 18%, and if the retirement age is raised to 70, it will reduce by 44 % the gap in social security funds.

But this also poses problems. A lot of people say sarcastically that if you sacrifice your old age it will likely turn into a situation where “the people are gone and the money is still there”. The non-retirement of the elderly will also affect the employment opportunities of young people.

Generally speaking, the rich work experience and stable lifestyles of older employees are more likely to be favored by employers. The Washington Post cited data from the Bureau of Labor Statistics and reported that since the onset of the economic recession triggered by the financial crisis in 2008, the number of people over the age of 55 working has increased by 3.1 million, or an increase of 12%. The proportion of the above-mentioned older people who are working is also increasing. In contrast, the number of employed people aged 25 to 54 fell by 6.5 million, down 6.5%.

In the US government's plan to close the Social Security funding gap, there is also the option of raising taxes. But this will come at the cost of lower consumption and will not be welcomed by voters. At present, the US government has yet to come up with a definitive plan and continues to explore.

What do you know about American pensions

The retirement pension for ordinary Americans is the same as Social Security retirement benefits. Normally, they have to pay social security taxes at work and individuals pay 6.20% of their income. Companies also pay the same proportion. If they are self-employed, individuals must pay 12.40%.

The normal retirement age in the United States is 66, but people born after 1960 are 67. To get a pension you need to accumulate 40 points, one point for every 1130 income, but a maximum of four points per year, so you need to work for at least ten years. If the spouse does not work or does not meet the conditions for working years, he may also receive a small pension. If the spouse dies, the other spouse (must reach retirement age) and minor children will also benefit from social security, this is not called a retirement pension.