Thirty years ago, people typically started work at a fairly young age (age 20), worked to 65 and then retired. Statistically they lived to age 72, so they had many years to earn and save, and just a few years to spend.
Typical retirement age has been 65 for a long time. In developed countries like Canada, the US, and Australia, social retirement benefits only start to kick in at 65.
But today, our statistical lifespan in these developed countries has increased to 78 years. Unfortunately, that doesn’t necessarily mean we have a whopping 13 years to enjoy retirement (statistically speaking). Instead, many seniors are now choosing, or being forced by financial circumstances, to work until 70+.
Not to be left behind, governments are slowly increasing the retirement age before benefits kick in. The cost savings are immense, even for a 6 month delay. Who knows…as life spans increase, perhaps our grandkids won’t be able to collect benefits until they’re close to 70!