All across the world, retirement ages are increasing. As people live longer and aging populations increse the burden on government pension payments, many nations are increasing their retirement age.
For example, in the US, full retirement age (also called ‘normal retirement age’) had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959.
The Congress cited improvements in the health of older people and increases in average life expectancy as primary reasons for increasing the normal retirement age.
Deciding when you plan to retire will also affect your pension contributions. If you have a 401k plan, you will need to adjust your contributions depending at what age you plan to stop work. You may have to make ‘catch-up’ contributions (from the age of 50) if you plan to retire early. Or, you may be able to pay less if you plan to defer taking your retirement benefits until the latest point (age 70.5).
For most Americans, the normal retirement age is around 66 years old. So, how does this compare to other OECD countries? Our map below shows the normal retirement date in dozens of other OECD countries. Hover over a country to see the retirement age in that nation.
You’ll see from the map that some countries – Japan and France, for example – have a normal retirement age of just 60 years old. Others, such as Norway, ask people to work until the age of 67. How does your retirement age compare? Let us know in the comments below.