South By North Strategies, Ltd.

A new analysis from the Center for Economic and Policy Research explains why the increase in life expectancies is not as significant for the well-being of Social Security as it may first appear. From the report:

Since the introduction of Social Security, life expectancy has grown, but much of the gains have taken the form of increased time spent working. For women in particular, the increase in working years means that they will see a length of retirement virtually the same as their parents. For those who labor in more physically demanding areas of the economy, working to an even later age is not a serious option. Fortunately, future generations will be far more productive than today – hence able to afford the lengthy retirements that increased life expectancy offers. While paying for these longer retirements does require additional savings on the part of workers, this is no less true in retirement planning generally than it is for Social Security. Thus, there is a need to increase national savings; but this requires addressing America’s persistent trade deficits – not denying seniors retirement income.