CEOs: Raise retirement age to 70
A group of corporate executives thinks Americans should have to wait longer to get Social Security and Medicare. Guess the median retirement age for the nation's top CEOs.
This post comes from Matthew Heimer at partner site MarketWatch.
In the endless-loop battle over the federal deficit, whether and how to reduce spending on Social Security and Medicare remains one of the most combustible topics. The Business Roundtable, a group of more than 170 of the nation's chief executives, has now spelled out its own stance on entitlement reform, and its headline proposal is that Americans need to wait longer for retirement benefits.
Most notably, the group advocates raising the Medicare and Social Security eligibility ages to 70, up from the current 65 for Medicare and 66 or 67 for full benefits for Social Security.
The organization unveiled its position in an opinion piece in The Wall Street Journal penned by Gary Loveman, the CEO of Caesar's Entertainment. The magic number 70 wasn't in the editorial, but it appears in the more detailed version of the proposals on the Business Roundtable website.
The roundtable also backed means testing of entitlement benefits, creating private sector competition for Medicare and using so-called "chained CPI" to slow the annual inflation-adjusted growth of Social Security payouts.
The group doesn't specify a timetable for phasing in these reforms, and consequently it doesn't try to estimate how much they would save, but none would apply to anyone who's currently 55 or older. (Incidentally, the median age of CEOs of S&P 500 companies is . . . 55.)
The proposal to turn 70 into the new 65 is a shoot-the-moon expansion of the parameters of the entitlement debate. During the fiscal cliff negotiations, the White House briefly signaled a willingness to hike the Medicare eligibility age to 67, only to take the proposal off the table.
In the eyes of some critics, increasing the Medicare threshold ignores both medical realities and the hard facts of the job market. Many surveys show that most Americans would prefer to keep working to 70 or beyond. But, according to the Center for Retirement Research at Boston College (.pdf file), in practice the average man retires by age 64 and the average woman retires by age 62. For many, poor health is a factor in their decision to leave the workforce as early as they do; others leave the workforce involuntarily after layoffs.
Loveman, at least, seems to think these are minor hurdles. As he told Politico, "I am encouraged by how relatively easy these remedies really are." They undoubtedly seem easier to those whose pay averages $362,000 a year -- the median compensation for a private company CEO, according to Chief Executive magazine. (CEOs of larger, S&P 500 companies make much more, of course; Loveman has earned about $28 million over the past five years, according to Forbes.)
Snark at the expense of the 1% aside, in an ideal world, if the roundtable's proposal became law, it would be counterbalanced by a commitment from private sector employers to keep employing, training and, most importantly, insuring their employees for those additional three to five years. That would take some pressure off the federal budget without shifting the financial burden entirely to older workers. (Fingers crossed.)
More from MarketWatch and MSN Money:
Can you say "under funded pension plans, benefits costs, and worker exploitation"????? Of course CEO's (and media pundits, financial advisers, members of Congress, etc. etc. etc.) who are making BIG$$$ and have nothing to worry about for their retirement are going to say raise the age. That much less to pay out given the deaths of soo many in their 60's from cancer, heart attack, stroke, etc. who can't collect!
What about the millions who are burned out emotionally and/or physically in their early 60's from jobs that chew them up and then spit them out??? What are they to do??? Raise the age so that the declining birth rate in the US won't hurt the available pool of labor! That's the answer! I thought that slavery was outlawed in this country? Walk a mile in another person's shoes if you really want to know how it feels! The Bozo baffoons coming up with this stuff have no idea what it's like for the 98%!
In today's age of 24/7 cellphones/email/texting that tie people to virtual servitude, the majority of middle class workers are married to their jobs with little or no extra compensation. Long Gone are the days when you walked out the door to go home and left your "job" at the office!!! You either shut up, do it, and don't complain, or you lose your job and are replaced by someone cheaper who will!
Glad that I'm retired and don't have to look back! I feel sorry for future generations!!!
CEO's: Raise retirement age to 70
Rest of the world: Cut CEO pay! They are not worth the money they are being paid!!
Raise retirement age? Good luck getting a job after the age is raised. Try being 65 and getting a CEO to hire you.
What will happen is if you raise the retirement age, there will be a poverty gap of folks age 62 and over who can't get social security and no CEO will hire them because they are too old.
Watch the film...The Company Men.
CEOs themselves retire early as they know being 70 and trying to enjoy retirement is a nasty life
These CEO's don't have any idea what they want.
I'm an American living in Germany. Company bosses here wanted the same, and the German government gave them their wish several years ago: The statutory retirement age was raised to 67, with the possibility for "early retirement" at 66.
Now get this: The companies are now whining that all these older workers are blocking jobs that they want to move the 30-year-olds in fasttrack programs into. They have now approached the unions to negotiate privately-financed early retirement schemes to "bridge" employees who leave at, say, age 62-63, until retirement at age 66!
IF I WAS RICH I WOULD BE FOR RAISING THE AGE ALSO. BA$TURDS. BUT I AM PO'.
HOPE YOU DIE
social security should have had some changes to it a couple generations ago.life expectancy is 15 or more years longer now than when the scam was first started....
why hasn't the age at which you can collect benefits gone up? we still have people collecting partial benefits @62 years? why..... why?
I say leave it the same! Considering that the current generations are being worked to death by these fat, greedy, worthless, CEO's I doubt most of us will make it to 65. I work for a company whose "Purpose" is "Helping people on a path to better health", yet I have to work 65-75 hours a week, without a break everyday to just keep my head above water because the fat, greedy, worthless, executives won't give the stores any payroll. Until we as Americans start to stand up for ourselves against these CEO's and our government, we are screwed!
Jed: "I say there Thornton, I would like to people to hate me some more, do you have any ideas?"
Thornton: "Why yes Jed, we could write an opinion piece in the WSJ about how people need to work longer until they reach retirement. "
Jed: "What a splendid idea, I will get my secretary on it right away."
Copyright © 2014 Microsoft. All rights reserved.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Casual dining restaurant chains have jumped on the happy hour train with deals on drinks and snacks -- maybe enough for dinner.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'