In California many workers currently get a retirement formula 2% at 55. That means you multiply your years of service by 2 and come up with the percentage of your salary you get when you retire. That means if you worked 10 years and were ready to retire at 55 you would get 20% of your salary. The potential a person could make if they start at age 18 is 37 years *2 for 74% of salary. Now they are going to roll back to 2% at 60. So a person starting at 18 years of age could 42 years and end up with 84% of salary. How is that a cut? Plus add in the fact that a worker to replace the 55 yo retiree probably will get paid alot less. In this situation I just dont see how this creates a financial benefit to go to 2% at 60. Very curious.
In California many workers currently get a retirement formula 2% at 55. That means you multiply your years of service by 2 and come up with the percentage of your salary you get when you retire. That means if you worked 10 years and were ready to retire at 55 you would get 20% of your salary. The potential a person could make if they start at age 18 is 37 years *2 for 74% of salary. Now they are going to roll back to 2% at 60. So a person starting at 18 years of age could 42 years and end up with 84% of salary. How is that a cut? Plus add in the fact that a worker to replace the 55 yo retiree probably will get paid alot less. In this situation I just dont see how this creates a financial benefit to go to 2% at 60. Very curious.