On Monday, an interesting article released with the opinions of Chief Executive Officer Robert Benmosche of AIG. You might remember AIG as the world's largest Insurer before the 2008 Crisis, during which American Insurance Group (AIG) took a multi-billion dollar bailout from the US Government. With the Crisis now into its 3rd year and AIG's bailout shoring up its books, Mr. Benmosche makes the case that there is no bailout coming for retirees (or hopeful retirees).
The article states:
“Retirement ages will have to move to 70, 80 years old,” Benmosche, who turned 68 last week, said during a weekend interview at his seaside villa in Dubrovnik, Croatia. “That would make pensions, medical services more affordable. They will keep people working longer and will take that burden off of the youth.”
Well that's nothing new. We all take into account we may need to work longer to make up from the losses incurred during the Crisis.
But the truth of Mr. Benmosche's message is the false belief that retirement is a choice. The simple fact is retirement comes at different times for different people due to age related illness and other personal situations. Not to mention that at a time when the younger generation is having problems finding long-term employment, those who are 60+ have even more problems finding work. A convenient point he misses from that villa in Dubrovnik.
