Indexing Retirement Age to Life Expectancy

See:  Denmark indexes retirement age to life expectancy.

In 2006, Denmark raised the pension age from 65 to 67 between 2019 and 2022. Thereafter, retirement ages will reflect the mean life expectancy of 60-year-olds, so that the average time people spend in retirement will be about 19 years. If life expectancy stays the same, the current retirement ages will as well. If they go up, so will retirement ages. The measure was created by the government to help better manage healthcare and pension costs over the next few decades.

In 1935, when America set up its Social Security system, the official pension age was 65 — three years beyond the life span of the typical American.

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