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84-1236: Olds may refer to: People [ edit ] The olds, a jocular and irreverent online nickname for older adults Bert Olds (1891–1953), Australian rules footballer Carl D. Olds (1912–1979), New Zealand-born American mathematician Chauncey N. Olds (1816–1890), American politician Edson B. Olds (1802–1869), American politician Elizabeth Olds (1896–1991), American printmaker Gabriel Olds (born 1972), American actor Gamaliel S. Olds (1777–1848), American Congregationalist minister George Olds (1853–1931), American academic administrator Glenn Olds (1921–2006), American academic administrator and politician Irving S. Olds (1887–1963), American lawyer and philanthropist James Olds (1922–1976), American psychologist and neuroscientist James Olds (bass) (born 1986), Australian opera singer Leland Olds (1890–1960), American economist Lewis P. Olds ( fl.  1869–1877 ), American lawyer, politician, and diplomat Ollie Olds (born 1993), Welsh rugby league footballer Peter Olds (born 1944), New Zealand poet Ransom E. Olds (1864–1950), American automobile industry pioneer and namesake of

168-524: A is approximately the same as pension wealth conditional on retiring one year later at age a +1. Nevertheless, a large literature has found that individuals respond significantly to financial incentives relating to retirement (e.g., to discontinuities stemming from the Social Security earnings test or the tax system). Greater wealth tends to lead to earlier retirement since wealthier individuals can essentially "purchase" additional leisure. Generally,

252-489: A 4.5% per year nominal rate of interest is assumed, then (using 1.045/1.035 in real terms ) pre-retirement and post-retirement net interest rates will remain the same, i = 0.966 percent per year and i = 0.966 percent per year. These assumptions may be reasonable in view of the market returns available on inflation-indexed bonds , after expenses and any tax. Equation (Ret-03) is readily coded in Excel and with these assumptions gives

336-539: A certain level of retirement expenditures. Some retirement calculators, appropriate for safe investments, assume a constant, unvarying rate of return. Monte Carlo retirement calculators take volatility into account and project the probability that a particular plan of retirement savings, investments, and expenditures will outlast the retiree. Retirement calculators vary in the extent to which they take taxes, social security, pensions, and other sources of retirement income and expenditures into account. The assumptions keyed into

420-430: A change to about 3% inflation and 4% investment return before and after retirement. Ignoring tax, someone wishing to work for a year and then relax for a year on the same living standard needs to save 50% of pay. Similarly, someone wishing to work from age 25 to 55 and be retired for 30 years till 85 needs to save 50% of pay if government and employment pensions are not a factor and if it is considered appropriate to assume

504-455: A condition marked by serious mental and physical debilitation. Therefore, rather than lumping together all people who have been defined as old, some gerontologists have recognized the diversity of old age by defining sub-groups. One study distinguishes the young-old (60 to 69), the middle-old (70 to 79), and the very old (80+). Another study's sub-grouping is young-old (65 to 74), middle-old (75 to 84), and oldest-old (85+). A third sub-grouping

588-416: A continuity of self-concept. In their interviews, Johnson and Barer found that 24% of the 85+ had no face-to-face family relationships; many have outlived their families. Second, that contrary to popular notions, the interviews revealed that the reduced activity and socializing of the over-85s does not harm their well-being; they "welcome increased detachment". Third, rather than a continuity of self-concept, as

672-415: A country's tax laws or state old-age pension rules usually mean that in a given country a certain age is thought of as the standard retirement age. As life expectancy increases and more and more people live to an advanced age, in many countries the age at which a pension is awarded has been increased in the 21st century, often progressively. The standard retirement age varies from country to country but it

756-507: A euphemistic term for being terminated from employment before typical retirement age. While conventional wisdom has it that one can retire and take 7% or more out of a portfolio year after year, this strategy would not have worked very often in the past. Those contemplating early retirement will want to know if they have enough to survive possible bear markets . The history of the US stock market shows that one would need to live on about 4% of

840-503: A fifth dimension: developmental. Chronological age may differ considerably from a person's functional age. The distinguishing marks of old age normally occur in all five senses at different times and at different rates for different people. In addition to chronological age, people can be considered old because of the other dimensions of old age. For example, people may be considered old when they become grandparents or when they begin to do less or different work in retirement. Senior citizen

924-832: A host of other topics (e.g., expectations, expenses, internet use, risk taking, psychosocial, time use). 2002 and 2004 saw the introductions of the English Longitudinal Study of Ageing (ELSA) and the Survey of Health, Ageing and Retirement in Europe (SHARE), which includes respondents from 14 continental European countries plus Israel. These surveys were closely modeled after the HRS in the sample frame, design and content. A number of other countries (e.g., Japan, South Korea) also now field HRS-like surveys, and others (e.g., China, India) are currently fielding pilot studies. These data sets have expanded

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1008-554: A list of people with the surname Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title Olds . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Olds&oldid=1089816944 " Categories : Disambiguation pages Disambiguation pages with surname-holder lists Place name disambiguation pages Hidden categories: Short description

1092-766: A person's ability to make active contributions to society. This number is also significantly affected by lower life expectancy throughout the developing world. Dating back to the Middle Ages and prior, what certain scholars thought of as old age varied depending on the context, but the state of being elderly was often thought as being 60 years of age or older in many respects. Gerontologists have recognized that people experience very different conditions as they approach old age. In developed countries, many people in their later 60s and 70s (frequently called "early old age") are still fit, active, and able to care for themselves. However, after 80, they generally become increasingly frail ,

1176-403: A pioneering study of Life Beyond 85 Years by interviews over a six-year period. In talking with 85-year-olds and older, they found some popular conceptions about old age to be erroneous. Such erroneous conceptions include (1) people in old age have at least one family member for support, (2) old age well-being requires social activity, and (3) "successful adaptation" to age-related changes demands

1260-407: A pleasant time; children are grown, work is over, and there is time to pursue other interests. Many old people are also willing to get involved in community and activist organizations to promote their well-being. In contrast, perceptions of old age by writers 80+ years old tend to be negative. Georges Minois  [ Wikidata ] writes that the first man known to talk about his old age

1344-547: A portfolio of inflation-linked bonds, coupled with other income sources like Social Security, would be able to sustain. Current real yields on United States Treasury Inflation Protected Securities (TIPS) are available at the US Treasury site. Current real yields on Canadian 'Real Return Bonds' are available at the Bank of Canada's site. As of December 2011, US Treasury inflation-linked bonds (TIPS) were yielding about 0.8% real per annum for

1428-554: A proportion Z = 35.78% should be saved. Retirement calculators generally accumulate a proportion of salary up to retirement age. This shows a straightforward case, which nonetheless could be practically useful for optimistic people hoping to work for only as long as they are likely to be retired. For more complicated situations, there are several online retirement calculators on the Internet. Many retirement calculators project how much an investor needs to save, and for how long, to provide

1512-512: A retirement calculator are critical. One of the most important assumptions is the assumed rate of real (after inflation) investment return. A conservative return estimate could be based on the real yield of Inflation-indexed bonds offered by some governments, including the United States, Canada, and the United Kingdom. The TIP$ TER retirement calculator projects the retirement expenditures that

1596-467: A safe real rate of return is zero. So in real terms , interest does not help the savings grow. Each year of work must pay its share of a year of retirement. For someone planning to work for 40 years and be retired for 20 years, each year of work pays for itself and for half a year of retirement. Hence, 33.33% of pay must be saved, and 66.67% can be spent when earned. After 40 years of saving 33.33% of pay, we have accumulated assets of 13.33 years of pay, as in

1680-643: A special " senior discount card " or other proof of age needs to be produced to show entitlement. In the United States , the standard retirement age is currently 66 (gradually increasing to 67). The AARP allows couples in which one spouse has reached the age of 50 to join, regardless of the age of the other spouse. In Canada , the Old Age Security (OAS) pension is available at 65 (the Conservative government of Stephen Harper had planned to gradually increase

1764-465: A vis Old". Blind Spot: Hidden Biases of Good People , a book about the test, reports that 80% of Americans have an "automatic preference for the young over old" and that attitude is true worldwide. The young are "consistent in their negative attitude" toward the old. Ageism documents that Americans generally have "little tolerance for older persons and very few reservations about harboring negative attitudes" about them. Despite its prevalence, ageism

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1848-458: A wealth of information on such topics as labor force participation (e.g., current employment, job history, retirement plans, industry/occupation, pensions, disability), health (e.g., health status and history, health and life insurance , cognition), financial variables (e.g., assets and income, housing, net worth, wills, consumption and savings), family characteristics (e.g., family structure, transfers, parent/child/grandchild/sibling information) and

1932-415: A zero real investment return. The problem that the lifespan is not known in advance can be reduced in some countries by the purchase at retirement of an inflation-indexed life annuity . To pay for pension, assumed for simplicity to be received at the end of each year, and taking discounted values in the manner of a net present value calculation, the ideal lump sum available at retirement should be: Above

2016-478: Is a big factor that affects the success of an individual's retirement experience. Social Security plays an important role because most individuals solely rely on Social Security as their only retirement option, when Social Security's trust funds are expected to be depleted by 2034. Knowledge affects an individual's retirement decisions by simply finding more reliable retirement options such as Individual Retirement Accounts or Employer-Sponsored Plans. In countries around

2100-704: Is a common euphemism for an old person used in American English , and sometimes in British English . It implies that the person being referred to is retired. This in turn usually implies that the person is over the retirement age , which varies according to country. Synonyms include old age pensioner or pensioner in British English, and retiree and senior in American English. Some dictionaries describe widespread use of "senior citizen" for people over

2184-404: Is a right. In many Western countries, this is a right embodied in national constitutions. An increasing number of individuals are choosing to put off this point of total retirement, by selecting to exist in the emerging state of pre-tirement . Retirement, or the practice of leaving one's job or ceasing to work after reaching a certain age, has been around since around the 18th century. Prior to

2268-764: Is assumed that interest, after expenses, taxes, and inflation is zero. Assume that in real (after-inflation) terms, one's salary never changes over w years of working life. During p years of pension, one has a living standard that costs a replacement ratio R times as much as one's living standard in working life. The working life living standard is one's salary minus the proportion of salary Z that should be saved. Calculations are per unit salary (e.g., assume salary = 1). Then after w years work, retirement age accumulated savings = wZ . To pay for pension for p years, necessary savings at retirement = Rp(1-Z) Equate these: wZ = Rp ( 1-Z ) and solve to give Z = Rp / ( w + Rp ). For example, if w = 35, p = 30 and R = 0.65,

2352-650: Is bewildered: They refuse to follow her advice, they are obsessed with the past, they avoid risk, and they live at a "glacial pace". In her The Denial of Aging , Dr. Muriel R. Gillick, a baby boomer , accuses her contemporaries of believing that by proper exercise and diet they can avoid the scourges of old age and proceed from middle age to death. Studies find that many people in the 65–84 range can postpone morbidity by practicing healthy lifestyles. However, at about age 85, most people experience similar morbidity. Even with healthy lifestyles, most 85+ people will undergo extended "frailty and disability". Early old age can be

2436-440: Is called efterløn and there are some requirements to be met such as contributing to the labor market for at least 20 years. Early and normal retirement ages vary according to the date of birth of the person filing for retirement. In France, the retirement age was 60, with full pension entitlement at 65; in 2010 this was extended to 62 and 67 respectively, increasing progressively over the following eight years. In Latvia,

2520-403: Is common to not include any house value in the calculation of this necessary lump sum, so for a homeowner the lump sum pays primarily for non-housing living costs. At retirement, the following amount will have been accumulated: To make the accumulation match with the lump sum needed to pay pension: Bring z to the left hand side to give the answer, under this rough and unguaranteed method, for

2604-620: Is different from Wikidata All article disambiguation pages All disambiguation pages Old age Old people often have limited regenerative abilities and are more susceptible to illness and injury than younger adults. They face social problems that relate to retirement , loneliness , and ageism . In 2011, the United Nations proposed a human-rights convention to protect old people. Definitions of old age include official definitions, sub-group definitions, and four dimensions as follows. Most developed Western countries set

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2688-709: Is forgetful and cannot recall yesterday. The bone suffers old age. Good is become evil. All taste is gone. What old age does to men is evil in every respect. Minois comments that the scribe's "cry shows that nothing has changed in the drama of decrepitude between the age of the Pharaoh and the atomic age" and "expresses all the anguish of old people in the past and the present". Lillian Rubin , active in her 80s as an author, sociologist, and psychotherapist, opens her book 60 on Up: The Truth about Aging in America with "getting old sucks. It always has, it always will." Dr. Rubin contrasts

2772-415: Is generally between 50 and 70 (according to latest statistics, 2011). In some countries this age is different for men and women, although this has recently been challenged in some countries (e.g., Austria), and in some countries the ages are being brought into line. The table below shows the variation in eligibility ages for public old-age benefits in the United States and many European countries, according to

2856-428: Is granted, according to the years of work and the average pay; this is usually provided by the employer. On a personal level, the rising cost of living during retirement is a serious concern to many older adults. Health care costs play an important role. Provision of state pensions is a significant drain on a government's budget. As life expectancy increases and the health of older people improves with medical advances,

2940-519: Is likely to be small. In general, declining health over time, as well as the onset of new health conditions, have been found to be positively related to earlier retirement. Health conditions that can cause someone to retire include hypertension , diabetes mellitus , sleep apnea , joint diseases , and hyperlipidemia . Most people are married when they reach retirement age; thus, spouse's employment status may affect one's decision to retire. On average, husbands are three years older than their wives in

3024-507: Is often preferred over "decrepitude, because death means deliverance". "The problem of the ambiguity of old age has ... been with us since the stage of primitive society ; it was both the source of wisdom and of infirmity, experience and decrepitude, of prestige and suffering." In the Classical period of Greek and Roman cultures, old age was denigrated as a time of "decline and decrepitude". "Beauty and strength" were esteemed and old age

3108-402: Is seldom the subject of public discourse. Simone de Beauvoir wrote that "there is one form of experience that belongs only to those that are old – that of old age itself". Nevertheless, simulations of old age attempt to help younger people gain some understanding. Texas A&M University offers a plan for an "Aging Simulation" workshop. The workshop is adapted from Sensitizing People to

3192-445: Is the standard mathematical formula for the sum of a geometric series . (Or if i =0 then the series in braces sums to p since it then has p equal terms). As an example, assume that S=60,000 per year and that it is desired to replace R =0.80, or 80%, of pre-retirement living standard for p=30 years. Assume for current purposes that a proportion z =0.25 (25%) of pay was being saved. Using i =0.02, or 2% per year real return on investments,

3276-527: Is to, for example, enter "0% return, 0% inflation" inputs into the calculator. The Bloomberg retirement calculator gives the flexibility to specify, for example, zero inflation and zero investment return and to reproduce the graph above. The MSN retirement calculator in 2011 has as the defaults a realistic 3% per annum inflation rate and optimistic 8% return assumptions; consistency with the December 2011 US nominal bond and inflation-protected bond market rates requires

3360-452: Is usually associated with an age at which pensions or medical benefits for the elderly become available. In commercial contexts, where it may serve as a marketing device to attract customers, the age is often significantly lower. In commerce, some businesses offer customers of a certain age a " senior discount ". The age at which these discounts are available varies from 55, 60, 62 or 65 upwards, and other criteria may also apply. Sometimes

3444-701: Is young-old (65 to 74), old (74 to 84), and old-old (85+). Describing sub-groups in the 65+ population enables a more accurate portrayal of significant life changes. Two British scholars, Paul Higgs and Chris Gilleard, have added a "fourth age" sub-group. In British English, the "third age" is "the period in life of active retirement, following middle age". Higgs and Gilleard describe the fourth age as "an arena of inactive, unhealthy, unproductive, and ultimately unsuccessful ageing". Key Concepts in Social Gerontology lists four dimensions: chronological, biological, psychological, and social. Wattis and Curran add

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3528-455: The OECD . The retirement age in many countries is increasing, often starting in the 2010s and continuing until the late 2020s. Notes: Parentheses indicate eligibility age for women when different. Sources: Cols. 1–2: OECD Pensions at a Glance (2005), Cols. 3–6: Tabulations from HRS, ELSA and SHARE. Square brackets indicate early retirement for some public employees. In Denmark, early retirement

3612-662: The "real old age" with the "rosy pictures" painted by middle-age writers. Writing at the age of 87, Mary C. Morrison describes the "heroism" required by old age: to live through the disintegration of one's own body or that of someone you love. Morrison concludes, "old age is not for the fainthearted". In the book Life Beyond 85 Years , the 150 interviewees had to cope with physical and mental debilitation and with losses of loved ones. One interviewee described living in old age as "pure hell". Research has shown that in high-income countries, on average, one in four people over 60 and one in three over 75 feels lonely. Johnson and Barer did

3696-489: The 18th century, humans had an average life expectancy between 26 and 40 years. In consequence, only a small percentage of the population reached an age where physical impairments began to be obstacles to working. Countries began to adopt government policies on retirement during the late 19th century and the 20th century, beginning in Germany under Otto von Bismarck . A person may retire at whatever age they please. However,

3780-593: The 30-year maturity and a noteworthy slightly negative real return for the 7-year maturity. Many individuals use "retirement calculators" on the Internet to determine the proportion of their pay they should be saving in a tax advantaged-plan (e.g., IRA or 401-K in the US, RRSP in Canada, personal pension in the UK, superannuation in Australia). After expenses and any taxes, a reasonable (though arguably pessimistic) long-term assumption for

3864-571: The Processes of Aging . Some of the simulations include: Retirement Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their job for health reasons. People may also retire when they are eligible for private or public pension benefits , although some are forced to retire when bodily conditions no longer allow

3948-542: The U.S. National Institute on Aging and the World Health Organization [WHO] Regional Office for Africa set the beginning of old age in Sub-Saharan Africa at 50. This lower threshold stems primarily from a different way of thinking about old age in developing nations. Unlike in the developed world, where chronological age determines retirement, societies in developing countries determine old age according to

4032-578: The U.S., and spouses often coordinate their retirement decisions. Thus, men are more likely to retire if their wives are also retired than if they are still in the labor force, and vice versa. Researchers analyzed factors affecting retirement decisions in EU member states : Overall, income after retirement can come from state pensions, occupational pensions, private savings and investments (private pension funds, owned housing), donations (e.g., by children), and social benefits. In some countries an additional lump sum

4116-588: The United States may typically retire at half pay after 20 years of service, or three-quarter pay after 30 years, allowing retirement from the early forties. Military members of the US Armed Forces may elect to retire after 20 years of active duty. (See also: military retirement pay and military pension .) Iranian age of retirement was increased much in 2022 and 2023 to 42 years of work insurance payment record to avoid government social security bankruptcy. Recent advances in data collection have vastly improved

4200-758: The United States, being healthy, physically, and socially active are signs of a good old age. On the other hand, Africans focus more on food and material security and a helpful family when describing old age well-being. Additionally, Koreans are more anxious about aging and more scared of old people than Americans are. Research on age-related attitudes consistently finds that negative attitudes exceed positive attitudes toward old people because of their looks and behavior. In his study Aging and Old Age , Posner discovers "resentment and disdain of older people" in American society. Harvard University's implicit-association test measures implicit "attitudes and beliefs" about "Young vis

4284-493: The ability of researchers to examine questions about retirement behavior by adding a cross-national perspective. Notes: MHAS discontinued in 2003; ELSA numbers exclude institutionalized (nursing homes). Source: Borsch-Supan et al., eds. (November 2008). Health, Ageing and Retirement in Europe (2004–2007): Starting the Longitudinal Dimension. Many factors affect people's retirement decisions. Retirement funding education

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4368-452: The ability to understand important relationships between retirement and factors such as health, wealth, employment characteristics and family dynamics, among others. The most prominent study for examining retirement behavior in the United States is the ongoing Health and Retirement Study (HRS), first fielded in 1992. The HRS is a nationally representative longitudinal survey of adults in the U.S. ages 51+, conducted every two years, and contains

4452-461: The age of 65. When defined in a legal context, senior citizen is often used for legal or policy-related reasons in determining who is eligible for certain benefits available to the age group. It is used in general usage instead of traditional terms such as "old person", "old-age pensioner", or "elderly" as a courtesy and to signify continuing relevance of and respect for this population group as " citizens " of society, of senior "rank". The term

4536-659: The age of eligibility to 67, starting in the years 2023–2029, although the Liberal government of Justin Trudeau is considering leaving it at 65), and the Canada Pension Plan (CPP) as early as age 60. The distinguishing characteristics of old age are both physical and mental. The marks of old age are so unlike the marks of middle age that legal scholar Richard Posner suggests that, as an individual transitions into old age, that person can be thought of as different people "time-sharing"

4620-440: The age of entitlement to a pension has been increasing progressively since about 2010. Older people are more prone to sickness, and the cost of health care in retirement is large. Most countries provide universal health insurance coverage for seniors, although in the United States many people retire before they become eligible for Medicare health cover at 65 years of age. A useful and straightforward calculation can be done if it

4704-410: The aged have coexisted in complex relationships throughout history. "Old people were respected or despised, honoured or put to death according to circumstance." In ancient times, those who were frail were seen as a burden and ignored or, in extreme cases, killed. People were defined as "old" because of their inability to perform useful tasks rather than their years. Although he was skeptical of

4788-598: The benchmark for senior citizenship in numerous countries. This convention originated from Chancellor Otto von Bismarck's introduction of the pension system in Germany during the late 19th century. Bismarck's legislation set the retirement age at 70, with 65 as the age at which individuals could start receiving a pension. This age standard gradually gained acceptance in other nations and has since become deeply entrenched in public consciousness. The age which qualifies for senior citizen status varies widely. In governmental contexts, it

4872-454: The conventional wisdom saying that fewer people will retire since their savings have been depleted; however recent research suggests that the opposite may happen. Using data from the HRS, researchers examined trends in defined benefit (DB) vs. defined contribution (DC) pension plans and found that those nearing retirement had only limited exposure to the recent stock market decline and thus are not likely to substantially delay their retirement. At

4956-419: The effect of wealth on retirement is difficult to estimate empirically since observing greater wealth at older ages may be the result of increased saving over the working life in anticipation of earlier retirement. However, many economists have found creative ways to estimate wealth effects on retirement and typically find that they are small. For example, one paper exploits the receipt of an inheritance to measure

5040-491: The effect of wealth shocks on retirement using data from the HRS. The authors find that receiving an inheritance increases the probability of retiring earlier than expected by 4.4 percentage points, or 12 percent relative to the baseline retirement rate, over an eight-year period. A great deal of attention has surrounded how the Financial crisis of 2007–2008 and subsequent Great Recession are affecting retirement decisions, with

5124-455: The elderly are a happier age group than their younger counterparts. Physical marks of old age include the following: Mental marks of old age include the following: Many books written by authors in middle adulthood depict a few common perceptions on old age. One writer notices the change in his parents: They move slowly, they have less strength, they repeat stories, their minds wander, and they fret. Another writer sees her aged parents and

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5208-997: The former Oldsmobile and REO brands Robert Olds (1896-1943), general officer in the United States Army Air Forces Robert E. Olds (1875-1932), American diplomat and lawyer Robin Olds (1922-2007), American fighter pilot Sharon Olds (born 1942), American poet Shelley Olds (born 1980), American racing cyclist Wally Olds (1949–2009), American ice hockey player Walter Olds (1846-1925), American judge W. B. Olds (1874–1948), American composer and scholar Places [ edit ] Olds, Alberta , Canada Olds, Iowa , United States Olds Peak , Antarctica Other uses [ edit ] F. E. Olds , an American brass musical instrument manufacturing company Olds College , in Olds, Alberta Oldsmobile , an American automobile brand See also [ edit ] Old (disambiguation) Olde ,

5292-451: The gods, Aristotle concurred in the dislike of old people. In his Ethics , he wrote that "old people are miserly; they do not acknowledge disinterested friendship; only seeking for what can satisfy their selfish needs". The Medieval and Renaissance periods depicted old age as "cruel or weak". The 16th-century Utopians Thomas More and Antonio de Guevara allowed no decrepit old people in their fictional lands. For Thomas More, on

5376-445: The graph. In the graph to the right, the lines are straight, which is appropriate given the assumption of a zero real investment return. The graph above can be compared with those generated by many retirement calculators. However, most retirement calculators use nominal (not "real" dollars) and therefore require a projection of both the expected inflation rate and the expected nominal rate of return. One way to work around this limitation

5460-480: The initial portfolio per year to ensure that the portfolio is not depleted before the end of the retirement; this rule of thumb is a summary of one conclusion of the Trinity study , though the report is more nuanced and the conclusions and very approach have been heavily criticized (see Trinity study for details). This allows for increasing the withdrawals with inflation to maintain a consistent spending ability throughout

5544-414: The interviewees faced new situations they changed their "cognitive and emotional processes" and reconstituted their "self–representation". Based on his survey of old age in history, Georges Minois concludes that "it is clear that always and everywhere youth has been preferred to old age". In Western thought, "old age is an evil, an infirmity and a dreary time of preparation for death". Furthermore, death

5628-492: The island of Utopia , when people are so old as to have "out-lived themselves" and are terminally ill, in pain, and a burden to everyone, the priests exhort them about choosing to die. The priests assure them that "they shall be happy after death". If they choose to die, they end their lives by starvation or by taking opium. Antonio de Guevara 's utopian nation "had a custom, not to live longer than sixty five years". At that age, they practiced self-immolation. Rather than condemn

5712-661: The majority of their life. Job openings will increase in the next 5 years due to retirements of the baby boomer generation. The Over 50 population is actually the fastest growing labor groups in the US. A great deal of research has examined the effects of health status and health shocks on retirement. It is widely found that individuals in poor health generally retire earlier than those in better health. This does not necessarily imply that poor health status leads people to retire earlier, since in surveys retirees may be more likely to exaggerate their poor health status to justify their earlier decision to retire. This justification bias, however,

5796-460: The necessary lump sum is given by the formula as (1-0.25)*0.80*60,000*annuity-series-sum(30)=36,000*22.396=806,272 in the nation's currency in 2008–2010 terms. To allow for inflation in a straightforward way, it is best to talk of the 806,272 as being '13.43 years of retirement age salary'. It may be appropriate to regard this as being the necessary lump sum to fund 36,000 of annual supplements to any employer or government pensions that are available. It

5880-420: The person to work any longer (by illness or accident) or as a result of legislation concerning their positions. In most countries, the idea of retirement is of recent origin, being introduced during the late-nineteenth and early-twentieth centuries. Previously, low life expectancy , lack of social security and the absence of pension arrangements meant that most workers continued to work until their death. Germany

5964-480: The practice, Bishop Guevara called it a "golden world" in which people "have overcome the natural appetite to desire to live". In the modern period, the cultural status of old people has declined in many cultures. Joan Erikson observed that "aged individuals are often ostracized, neglected, and overlooked; elders are seen no longer as bearers of wisdom but as embodiments of shame". Attitudes toward old age well-being vary somewhat between cultures. For example, in

6048-439: The probability that the retirement plan will be successful. Retirement is generally considered to be "early" if it occurs before the age (or tenure) needed for eligibility for support and funds from government or employer-provided sources. Early retirees typically rely on their own savings and investments to be self-supporting, either indefinitely or until they begin receiving external support. Early retirement can also be used as

6132-539: The proportion of pay that should be saved: Note that the special case i =0 = i means that the geometric series should be summed by noting that there are p or w identical terms and hence z = p/(w+p). This corresponds to the graph above with the straight line real-terms accumulation. The result for the necessary z given by (Ret-03) depends critically on the assumptions made. As an example, one might assume that price inflation will be 3.5% per year forever and that one's pay will increase only at that same rate of 3.5%. If

6216-420: The required savings rates in the accompanying picture. Finally, a newer method for determining the adequacy of a retirement plan is Monte Carlo simulation . This method has been gaining popularity and is now employed by many financial planners. Monte Carlo retirement calculators allow users to enter savings, income and expense information and run simulations of retirement scenarios. The simulation results show

6300-399: The retirement age around the age of 65; this is also generally considered to mark the transition from middle to old age. Reaching this age is commonly a requirement to become eligible for senior social programs. Old age cannot be universally defined because it is context-sensitive. The United Nations, for example, considers old age to be 60 years or older. In contrast, a 2001 joint report by

6384-520: The retirement age depends on the date of birth of the person filing for retirement. In Spain it was ruled that the retirement age was to increase from 65 to 67 progressively from 2013 to 2027. In the United States, while the normal retirement age for Social Security , or Old Age Survivors Insurance (OASI) was age 65 to receive unreduced benefits, it is gradually increasing to age 67 by 2027. Public servants are often not covered by Social Security but have their own pension programs. Police officers in

6468-431: The retirement, and to continue making withdrawals even in dramatic and prolonged bear markets . (The 4% figure does not assume any pension or change in spending levels throughout the retirement.) When retiring prior to age 59 + 1 ⁄ 2 , there is a 10% IRS penalty on withdrawals from a retirement plan such as a 401(k) plan or a Traditional IRA. Exceptions apply under certain circumstances. At age 59 and six months,

6552-534: The same identity. These marks do not occur at the same chronological age for everyone. Also, they occur at different rates and order for different people. Marks of old age can easily vary between people of the same chronological age. A basic mark of old age that affects both body and mind is "slowness of behavior". The term describes a correlation between advancing age and slowness of reaction and physical and mental task performance. However, studies from Buffalo University and Northwestern University have shown that

6636-491: The same time, using data from the Current Population Survey (CPS), another study estimates that mass layoffs are likely to lead to an increase in retirement almost 50% larger than the decrease brought about by the stock market crash, so that on net retirements are likely to increase in response to the crisis. More information tells of how many who retire will continue to work, but not in the career they have had for

6720-435: The world, people are much more likely to retire at the early and normal retirement ages of the public pension system (e.g., ages 62 and 65 in the U.S.). This pattern cannot be explained by different financial incentives to retire at these ages since typically retirement benefits at these ages are approximately actuarially fair; that is, the present value of lifetime pension benefits (pension wealth) conditional on retiring at age

6804-403: Was an Egyptian scribe who lived 4,500 years ago. The scribe addressed God with a prayer of lament: O Sovereign my Lord! Oldness has come; old age has descended. Feebleness has arrived; dotage is here anew. The heart sleeps wearily every day. The eyes are weak, the ears are deaf, the strength is disappearing because of weariness of the heart and the mouth is silent and cannot speak. The heart

6888-445: Was apparently coined in 1938 during a political campaign. Famed caricaturist Al Hirschfeld claimed on several occasions that his father Isaac Hirschfeld invented the term "senior citizen". It has come into widespread use in recent decades in legislation, commerce, and common speech. Especially in less formal contexts, it is often abbreviated as "senior(s)", which is also used as an adjective . The age of 65 has long been considered

6972-479: Was the first country to introduce retirement benefits in 1889. Nowadays, most developed countries have systems to provide pensions on retirement in old age , funded by employers or the state. In many poorer countries, there is no support for the elderly beyond that provided through the family. Today, retirement with a pension is considered a right of the worker in many societies; hard ideological, social, cultural and political battles have been fought over whether this

7056-510: Was viewed as defiling and ugly. Old age was reckoned as one of the unanswerable "great mysteries" along with evil, pain, and suffering. "Decrepitude, which shrivels heroes, seemed worse than death." Historical periods reveal a mixed picture of the "position and status" of old people, but there has never been a "golden age of aging". Studies have challenged the popular belief that in the past old people were venerated by society and cared for by their families. Veneration for and antagonism toward

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