Do We Retire at 65? An Innovation Story

Here’s an interesting question:

Why is the Retirement Age 65 in most developed countries?

I’ll give you a second to think about it. Or google it.

Here’s a hint: the retirement age of 65 was first selected in 1880.

Here’s the answer: the retirement age was set at 65 because when it was first introduced by Otto von Bismarck, hardly anyone lived that long. Here’s a quick rundown on that:

The age of 65 was originally selected as the time for retirement by the “Iron Chancellor,” Otto von Bismark of Germany, when he introduced a social security system to appeal to the German working class and combat the power of the Socialist Party in Germany during the late 1800s. Somewhat cynically, Bismark knew that the program would cost little because the average German worker never reached 65, and many of those who did lived only a few years beyond that age. When the United States finally passed a social security law in 1935 (more than 55 years after the conservative German chancellor introduced it in Germany), the average life expectancy in America was only 61.7 years.


Posted by TimothyKastelle

Here’s an interesting question:
Why is the Retirement Age 65 in most developed countries?
I’ll give you a second to think about it. Or google it.
Here’s a hint: the retirement age of 65 was first selected in 1880.
Here’s the answer: the retirement age was set at 65 because when it was first introduced by Otto von […]

Here’s an interesting question:

Why is the Retirement Age 65 in most developed countries?

I’ll give you a second to think about it. Or google it.

Here’s a hint: the retirement age of 65 was first selected in 1880.

Here’s the answer: the retirement age was set at 65 because when it was first introduced by Otto von Bismarck, hardly anyone lived that long. Here’s a quick rundown on that:

The age of 65 was originally selected as the time for retirement by the “Iron Chancellor,” Otto von Bismark of Germany, when he introduced a social security system to appeal to the German working class and combat the power of the Socialist Party in Germany during the late 1800s. Somewhat cynically, Bismark knew that the program would cost little because the average German worker never reached 65, and many of those who did lived only a few years beyond that age. When the United States finally passed a social security law in 1935 (more than 55 years after the conservative German chancellor introduced it in Germany), the average life expectancy in America was only 61.7 years. Leer más “Do We Retire at 65? An Innovation Story”