The good news is that Americans are living longer. The bad news? Our current retirement systems are not designed to support a life expectancy of 100 years. To replace one’s income during a retirement that lasts to 100, workers need to save over 30 percent of their income every single year of their working lives. They also need to work longer. Changes to our existing retirement systems may help. Some changes to Social Security, such as eliminating the Social Security payroll tax on workers with 40 years of work history, could help older Americans stay in the workforce longer, but not everyone is able to work past their full retirement age. Long-term care for older Americans is a big challenge that is getting bigger. Long-term care policies are expensive and hard to get as insurance companies cease providing them. We cannot ignore the risk that many older Americans will be impoverished in their old age.
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Who’ll Pay for Americans to Live to 100?