China’s Retirement Age Hike Sparks Urgency: 5 Critical Fixes the U.S. Retirement System Needs Now

2.     Extending the Years Required for Social Security Eligibility

Beginning in the year 2030, the Chinese would have to contribute more to the Social Security system to receive pensions. A total of 20 years of contributions will be required by 2039. Similar to the move, the US should also consider raising the number of years individuals contribute to Social Security to be eligible for full benefits. Raising the retirement age and extending years of work can be a potential solution to the insolvency challenge that the program is facing. Even BlackRock, Inc. (NYSE:BLK) CEO Larry Fink agrees, stating that the US’s current retirement age is a bit “crazy” given the current circumstances.

“Think about someone who was 65 years old in 1952, the year I was born. If he hadn’t retired already, that person was probably getting ready to stop working. But now think about that person’s former colleagues, all the people around his age who he’d entered the workforce with back in the 1910s. The data shows that in 1952, most of those people were not preparing for retirement because they’d already passed away”.

-BlackRock, Inc. (NYSE:BLK) CEO wrote.