Global life expectancy improved from 46.5 years in 1950 to 66 years in 2000 and is anticipated to increase to 76 by 2050, according to the United Nations Population Division. 

As a result, countries are revisting their retirement ages and making adjustments to their social safety net programs. Some countries have moved towards the privatization of pension plans, while other countries, such as France and Denmark, are meeting this challenge by raising their retirement ageDenmark recently announced it is raising its retirement age to 70 in response to increased life expectancy.

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In the U.S., Social Security retirement benefits are monthly payments designed to provide income for individuals who have worked and paid Social Security taxes during their careers as well as for those with a disability precluding them from work, as well as survivors (widows and other eligible family members of a worker who paid into the Social Security System). 

The average age of retirement across Western democracies is 65. In the U.S. the current retirement age is 66. 

Presently, the Social Security program is the largest single item in the annual federal government budget. As a percentage of total federal expenditures, in 2002 Social Security benefits were approximately 22.6% of federal expenditures. As a percentage of federal outlays, Social Security benefits have ranged from a low of 0.22% (during World War II) to a high of 23.2% in 2001.

According to Congressional Budget Office (CBO), the Social Security Old-Age and Survivors Insurance (OASI) trust fund will exhaust its reserves by Fiscal Year (FY) 2032 and the Social Security Disability Insurance (SSDI) trust fund will become insolvent by calendar year 2052 (the Social Security Trustees project OASI insolvency by 2033. When the trust fund is exhausted, Social Security beneficiaries will still receive benefits funded through current payroll taxes, but payments could be cut by more than 20% if Congress does not act to stabilize the Social Security Trust Fund before then.

That gives the U.S. less than ten years to work out a solution. The Danes are providing an example for what responsible governing looks like. 

Denmark’s parliament recently passed a law raising the retirement age to 70 by 2040, giving the country the highest retirement age in Europe. 

Since 2006, Denmark has tied the official retirement age to life expectancy and has automatically revised it every five years. It is currently 67 but will rise to 68 in 2030 and to 69 in 2035.

The retirement age at 70 will apply to all people born after 31 December 1970.

This new law passed with 81 votes for and only 21 votes against.

The vote tallies show that changes that might be seen as unpopular can be made more palpable when done incrementally and with enough time for workers to prepare. 

Congress should take note as the United States confronts its increasingly unsustainable debt burdens.. 

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