Being young, retirement seems like it's so far away. But in reality, it's getting farther away every year for most millennials.
In 1993, the average retirement age in the United States was 57. Today, the average retirement age is 62. In those 20 years, people are now working an average of 5 years longer. However, non-retirees are looking at the future and thinking that they will be working even longer. According to a 2014 Gallup poll, non-retired Americans believe they will be working until at least 66.
Along these same lines, the life expectancy of Americans continues to rise. In 1950, the average life expectancy for men was just 65, and for women it was 70. Today, the average life expectancy for men is over 74, and women are pushing 80.
So, if retirement ages increase about 5 years every 2 decades, and life expectancy increases about 3 years every decade, today's college students have a lot of time ahead of them.
In 40 years from today – when today's 22 year olds are going to be in their sixties, people may well be working until they are 75 years old. On the same coin, they may also be living into their nineties consistently as well.
This means a lot of working – but also more time to save and invest. That could make the new “early retirement” 65.
Over to you – how long do you think today's millennials will have to work until? What changes does that mean for the economy?