retirement age
Retirement age may rise in CaliforniaPosted by RJ and Makay on Nov 03, 2011 |
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Governor Jerry Brown’s proposal to raise the age, from 55 to 67, for state public employees’ retirement with full benefits, if passed, would put California in the company of only three other states that have raised the retirement threshold to shave state budget costs. The change, which still requires legislative or voter approval, reflects the effects of Americans increased longevity and the resulting pressure it adds to government pension plans.
The recession and financial crises of 2008-2009 has had a big impact on the retirement plans of Americans age 55 and older. A decade ago, this group of pre-retirement and retirement-age citizens expected to retire at age 64. Now, on average, they expect to retire five years later, at age 69, according to The Sun America Retirement Re-set Study based on a recent Harris Interactive survey conducted for SunAmerica.
Baby boomers, by a 4 to 1 margin, are much more attracted to guaranteed sources of income for their retirement savings versus potential high returns from riskier investments, according to a recent Allianz Life 2011 update of its 2010 survey study “Reclaiming the Future.” This is in stark contrast to baby boomer investment habits before the 2008-2009 financial crises, when they were more likely to shoot for higher returns from riskier investments.
