The future of Social Security and income for retirees have been talked about a great deal by both presidential candidates this election season. Not only are retirees watching to see about potential cuts to benefits, but many working Americans want to hear from the candidates about their plans for the system itself.
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The United States is not the only country looking at its retirement age and funding. Countries like France have looked at options such as raising the retirement age — a move that didn’t sit well with many voters.
For some more perspective, here’s a look at how the average retirement age and benefits in the U.S. compare to Canada.
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Retirement in the US
In the U.S., the average retirement age tends to fall between 64 and 66 years. There are many factors that play into an individual’s decision to retire, such as health and financial readiness, so the retirement age tends to vary.
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According to the Social Security Administration, if you retire at 62, the earliest possible Social Security retirement age, your benefit is lower than if you wait. If you were born 1960 or later, full retirement benefits are payable at age 67. The average monthly Security benefit check is about $1,800, but that can vary quite a bit.
However, more workers in the U.S. have been putting off retirement — and it’s not just because of financial concerns. According to CNN, “One factor contributing to today’s higher retirement age is that college-educated Americans tend to work somewhat longer than others on average, largely because they tend to be in better health.”
Retirement in Canada
You won’t find a great deal of difference when it comes to the average retirement age in Canada compared to the U.S. In fact, it’s generally around the same age of 65. The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire.
According to the Government of Canada, you can qualify for a CPP retirement pension when you’re at least 60 years old and have made at least one valid contribution to the CPP. Per the government’s website, “Valid contributions can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.”
In Canada, the standard age to start the pension is 65. Similar to the U.S. there is flexibility in the age. You can start receiving it as early as age 60 or as late as age 70. Like the U.S. system, the earlier you take it, the smaller your monthly checks. The average monthly amount paid for a new retirement pension, at age 65, is about $816.
When looking at how much you’ll receive for a CPP retirement pension, there are several factors at play:
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The age you decide to start your pension.
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How much and for how long you contributed.
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Your average earnings throughout your working years.
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This article originally appeared on GOBankingRates.com: The Average Retirement Age in 2024: US vs. Canada
