What Is Retirement Age: The Original Retirement Age for Social Security
When the Iron Chancellor of Germany Otto von Bismarck established the western world’s first “social security” system back in 1889, he chose 70 as the official retirement age for social security. Years later, in 1916, Germany lowered the pension-start age to 65.
What Is Retirement Age: 1960 to 1980
In the United States the trend from the 1960s to the 1980s was to retire earlier and earlier. The average retirement age sank to 62, from around 67. Since then, as pensions have withered, that trend has been reversing. The average retirement age in 2010 was about 64.
Normal Retirement Age for Government Retirement Plans
Back in 2006, the Department of Treasury Internal Revenue Service (IRS) published a rule regarding how low the normal retirement age (NRA) may be for government retirement pension plans.
In simple terms, the regulation provides that:
- An NRA below age 55 years is presumed unreasonable unless the federal Tax Commissioner determines that what is retirement age is justified under the facts and circumstances of the government retirement plan.
- An NRA between 55 and 62 years is deemed reasonable if the employer makes a good faith determination, based on the applicable facts and circumstances that the NRA of the government retirement plan reasonably represents the typical retirement age for the industry in which the covered workforce is employed.
- An NRA of at least 62 years (or age 50 for a government retirement plan in which substantially all the participants are qualified public safety employees) is presumed to comply with the regulation regarding what is retirement age.
Topic: What Is Retirement Age?
Subtopics: What Is Retirement Age? • Retirement Age: A Personal Choice • History of Retirement Age • Why Raise the USA Retirement Age? • Life Expectancy • Retirement Age & Health • Demographics • What Is the Retirement Age in Other Countries? • Retirement Age Increasing • Your Decision
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