What would your career outlook be like if your employer determined what age you would retire at the start of your career with them? Would you have more hope for the future? Or less?
“One way forward would be to amend current law to allow employers and employees to agree on a retirement age at the start of a new job. The contract could specify that, after a certain age, the employee could be terminated without cause.” A Wall Street Journal essay from this week by Saul Levmore and Martha Nussbaum proposes a new take on the current dominant retirement paradigms.
A Money magazine from last year discussed the issue: “You’ve heard the horror stories about many Americans retiring with puny nest eggs and little income to live on. Still, data show that more than two-thirds of Americans are out of the full-time workforce by age 66.”
According to the CDC, the average life expectancy is 78.8 years. This indicates that on average, Americans are spending between 15-20 years in retirement. This is a huge strain on the current Social Security system, and for employers as well, as current workers pay for the pensions of retired workers. Is there a better solution?