Rescuing Entitlements and Pensions: Study Shows Americans Can Work Longer
A new study from the National Bureau of Economic Research (NBER) estimates that Americans can work significantly longer than they currently do. According to the study, Americans could work an additional 2.5 years to 4.2 years on average between the ages of 55 and 69. This is equivalent to a 30 percent to 50 percent increase in employment among this age group.
This is welcome news for America’s massively underfunded entitlement programs and pension plans because increasing eligibility ages is the logical response to higher life expectancies. Raising eligibility ages would help to contain costs and preserve the original intent of entitlements and pensions: to provide for individuals who can no longer work. The NBER study alleviates concerns that Americans are unable to work longer and suggests that raising eligibility ages is a commonsense solution for underfunded entitlements and pension plans.