We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Retirement in the US - Essay Example

Comments (0)
Retirement is the condition where an individual ceases active or direct employment. Retirement can be total, where the individual terminates the total number of working hours completely or partial retirement where he or she reduces the number of working hours…
Download full paper
Retirement in the US Essay
Read TextPreview

Extract of sample
Retirement in the US

Download file to see previous pages... Prior to the 19th Century, retirement was uncommon due to the average low life expectancy and absence of retirement benefits. As a result, workers continued working until their old age and death. Retirement was first introduced in Germany as the first country in the late 19th Century and with it, pension benefits were introduced and adopted (Feldstein & Liebman, 2002). In most developed countries and emerging economies, systems have been put in place to facilitate the provision of pensions upon retirement. These services can be financed by the respective states or employers. In less developed countries, the support of elderly is mainly provided by their families. A person has the right to retire at any age they desire. However, a state’s laws pertaining tax, terms of employ or pensions dictate a standard age accepted as the retirement age. The standard retirement age for different countries varies generally between the ages of 50 and 70 (Costa, 2000). In the United States, a lot of factors influence people’s decisions on retirement. A major contributing factor to this is Social Security. Social Security is a program for social insurance, which provides protection in a social sense against old age, illness, unemployment, poverty, disabilities among others. United States citizens are likely to retire a little earlier than the standard retirement age, which is 65 years, concurring with the public pension system (Costa, 2000). However, it is hard to conclude that financial incentives influence this retirement age. This is because the different financial incentives accorded to employees to retire offer mixed results as their results are actuarially fair. This means that the current value of retirement benefits does not vary with time. The value of the benefits does not increase whether considered at present or at a future time. Research has shown that individuals positively react significantly to the presence of financial incentives determining the age at which they retire (Feldstein & Liebman, 2002). Attractive packages for retirement at the full age or public standard age of a state for employees may influence the workers to continue working to reach this target so as to benefit fully from these packages. Greater wealth owned by individuals and high standards of living contribute to earlier ages of retirement (Jeffrey, 2006). This is because, they are more secure about their futures and are more inclined to enjoy their wealth without commitments of employment. In addition, they feel insured against the risk of poverty. The effect of wealth on individuals and their retirement ages is difficult to determine through empirical means because the source of the wealth might be as a result of lifetime savings over their productive life. This is partly due to the anticipation of early retirement. Economists have determined the effects of wealth on retirement and found that these effects are considerably small. According to Jeffrey (2006), “receiving an inheritance increases the probability of retiring earlier than expected by 4.4 percentage points, or 12 percent relative to the baseline retirement rate, over an eight-year period” (p. 79). The effects of wealth shocks on employment are evaluated. In the United States, Americans are increasingly working past the traditional age of 65. The percentage of citizens past this age that are working has increased steadily in the recent decades from an average of 11.4 percent in 1990 to 16.2 percent in the year 2010 (Broom, 2012). In fact, the trend is ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Retirement Planning
Some investments offer tax breaks up front while others do not. The key to proper retirement investing is to diversify properly while making consistent contributions. Diversified Retirement Planning Preparing for retirement is crucial for those who not only wish to support themselves in their old age, but also for those who want to be a blessing to their children and grandchildren rather than dependent upon them.
4 Pages(1000 words)Essay
Retirement Age
For instance, Britain had initially made proposals to increase the pensionable age to sixty-six by 2026 and sixty-seven by 2036 (Woodifield, 2013). However, they have made changes to set the retirement age at 66 by 2020 and 67 for the duration between 2026 and 2028 (Woodifield, 2013).
3 Pages(750 words)Essay
Retirement Planning
Man’s life is full of uncertainty. Today’s earnings do not give any guarantee of tomorrows benefits unless they are planned and saved in an orderly manner. Personal Finance is one such process which
5 Pages(1250 words)Essay
Retirement Awareness
Many factors play a major role in early retirement such as illness, economic soundness or private occupation. Many factors play their role in making early retirement decision. Greater wealth is obviously one of the factors. Other most
3 Pages(750 words)Essay
Retirement income
Government pension benefits have the benefit of providing a modest source of retirement income. However, I will be faced with the challenge of maintaining a pre-retirement lifestyle and this where personal savings and employer pension plans come in handy (Brown, Chambers &
2 Pages(500 words)Essay
Retirement Planning
savings plan into your budget, while allowing the power of compounding interest to do all the work for you in order to achieve a comfortable retirement without financial worries. There are a lot of individual factors that one must take in consideration while planning for
4 Pages(1000 words)Essay
Retirement Issues
For most of the people, it is not possible to work during the entire life. Sooner or later age would take its toll and limit physical movement as well as the thought process. Every person is aware of this fact and tries his level best to secure his lifelong livelihood within the specific time of working life.
15 Pages(3750 words)Essay
If you worked for 48 years, then you could calculate your ending salary by: End Salary = ($Start Salary) x (1+ i)t where "i" is annual raise expressed in decimal
5 Pages(1250 words)Essay
Assuming that the employer’s defined benefit plan pays 1.25% of ending salary per year of employment, what will your annual retirement income be from this retirement plan (do not adjust for inflation): In a defined benefit plan the employer does not take into
5 Pages(1250 words)Essay
The availability of guidance to the pre-retirees at this stage is wanting. The liberation stage is marked by the first day of retirement. Also referred to as the honeymoon stage, it lasts for about a year (Schieber, 2012).
2 Pages(500 words)Assignment
Let us find you another Essay on topic Retirement in the US Essay for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us