David Hoffman | Where Did This Idea Of Retiring Come From? And Why? @DavidHoffmanFilmmaker | Uploaded September 2024 | Updated October 2024, 14 minutes ago.
I was asked to make a film on retirement and this is a clip. The concept of retirement—leaving one's job or career permanently upon reaching a certain age—has evolved significantly over time. The idea of retirement as we understand it today is relatively modern.
In ancient societies, the concept of retirement did not exist. Most people worked as long as they were physically able, and there was no formalized period of leisure or rest after a lifetime of work. In agricultural or craft-based economies, older individuals might reduce their workloads or shift to less physically demanding roles.
In medieval Europe retirement was not a formal concept. People often worked their entire lives, and older family members were typically cared for by their families when they could no longer work. The elderly were respected for their wisdom and often took on advisory roles or tasks that required less physical effort.
The Industrial Revolution brought significant social and economic changes, including the development of more formalized employment relationships. The shift from agrarian to industrial work meant that older workers could no longer perform the physically demanding jobs in factories as effectively as younger workers. This change began to raise questions about the role of older workers in the labor force.
In the USA the first formal retirement plans can be traced back to 1855 when the government began providing pensions to federal workers and military personnel. This early form of retirement was intended to provide financial support to those who could no longer work due to age or disability.
The idea of retirement started to take shape in the early 20th century with the introduction of private pension plans by companies like American Express (1875). Retirement began to be seen as a social issue, especially as life expectancy increased and older workers found it increasingly difficult to compete with younger workers in a rapidly changing economy. The notion of providing a dignified retirement for older workers began to gain traction.
The Social Security Act, signed into law by President Franklin D. Roosevelt in 1935, was a landmark piece of legislation that established the foundation for retirement in the United States. The Act created a social insurance program designed to provide financial support to the elderly, unemployed, and disabled. The program was funded through payroll taxes collected from workers and employers.
With the introduction of Social Security, retirement became a more realistic possibility for many Americans. The Act provided a steady source of income for retirees, which allowed many older workers to leave the workforce and enjoy a period of leisure and rest in their later years.
Following World War II, the U.S. economy experienced significant growth, leading to increased wages and a rise in the standard of living. Employer-sponsored pension plans became more common. This period also saw the growth of the middle class and the idea of retirement as a well-deserved reward for a lifetime of work.
In the 1980s, there was a significant shift from defined benefit plans to defined contribution plans, such as 401(k) plans. Unlike defined benefit plans, defined contribution plans do not guarantee a specific retirement benefit. Instead, employees contribute a portion of their salary to an investment account, often with matching contributions from their employers. This shift placed more responsibility on individuals to save and invest for their retirement. As a result, retirement security has become more uncertain for many workers, particularly those without access to employer-sponsored retirement plans.
To address the financial strain on the Social Security system caused by increased life expectancy and an aging population, the full retirement age for Social Security benefits has been gradually raised from 65 to 67 for those born after 1960. There is ongoing debate about further raising the retirement age and other reforms to ensure the long-term solvency of Social Security.
Today, retirement experiences vary widely. Some retirees continue to work part-time or pursue new careers in what is often called a "phased retirement" or "encore career." Others may rely more heavily on Social Security and personal savings, while some retirees experience financial insecurity and struggle to meet basic needs.
With the shift to defined contribution plans, financial literacy and planning have become more critical. There is greater emphasis on educating individuals about saving for retirement, investment strategies, and managing retirement income.
Please consider my efforts to continue to post documentary clips like this one by supporting my effort using Patreon at patreon.com/allinaday.
I was asked to make a film on retirement and this is a clip. The concept of retirement—leaving one's job or career permanently upon reaching a certain age—has evolved significantly over time. The idea of retirement as we understand it today is relatively modern.
In ancient societies, the concept of retirement did not exist. Most people worked as long as they were physically able, and there was no formalized period of leisure or rest after a lifetime of work. In agricultural or craft-based economies, older individuals might reduce their workloads or shift to less physically demanding roles.
In medieval Europe retirement was not a formal concept. People often worked their entire lives, and older family members were typically cared for by their families when they could no longer work. The elderly were respected for their wisdom and often took on advisory roles or tasks that required less physical effort.
The Industrial Revolution brought significant social and economic changes, including the development of more formalized employment relationships. The shift from agrarian to industrial work meant that older workers could no longer perform the physically demanding jobs in factories as effectively as younger workers. This change began to raise questions about the role of older workers in the labor force.
In the USA the first formal retirement plans can be traced back to 1855 when the government began providing pensions to federal workers and military personnel. This early form of retirement was intended to provide financial support to those who could no longer work due to age or disability.
The idea of retirement started to take shape in the early 20th century with the introduction of private pension plans by companies like American Express (1875). Retirement began to be seen as a social issue, especially as life expectancy increased and older workers found it increasingly difficult to compete with younger workers in a rapidly changing economy. The notion of providing a dignified retirement for older workers began to gain traction.
The Social Security Act, signed into law by President Franklin D. Roosevelt in 1935, was a landmark piece of legislation that established the foundation for retirement in the United States. The Act created a social insurance program designed to provide financial support to the elderly, unemployed, and disabled. The program was funded through payroll taxes collected from workers and employers.
With the introduction of Social Security, retirement became a more realistic possibility for many Americans. The Act provided a steady source of income for retirees, which allowed many older workers to leave the workforce and enjoy a period of leisure and rest in their later years.
Following World War II, the U.S. economy experienced significant growth, leading to increased wages and a rise in the standard of living. Employer-sponsored pension plans became more common. This period also saw the growth of the middle class and the idea of retirement as a well-deserved reward for a lifetime of work.
In the 1980s, there was a significant shift from defined benefit plans to defined contribution plans, such as 401(k) plans. Unlike defined benefit plans, defined contribution plans do not guarantee a specific retirement benefit. Instead, employees contribute a portion of their salary to an investment account, often with matching contributions from their employers. This shift placed more responsibility on individuals to save and invest for their retirement. As a result, retirement security has become more uncertain for many workers, particularly those without access to employer-sponsored retirement plans.
To address the financial strain on the Social Security system caused by increased life expectancy and an aging population, the full retirement age for Social Security benefits has been gradually raised from 65 to 67 for those born after 1960. There is ongoing debate about further raising the retirement age and other reforms to ensure the long-term solvency of Social Security.
Today, retirement experiences vary widely. Some retirees continue to work part-time or pursue new careers in what is often called a "phased retirement" or "encore career." Others may rely more heavily on Social Security and personal savings, while some retirees experience financial insecurity and struggle to meet basic needs.
With the shift to defined contribution plans, financial literacy and planning have become more critical. There is greater emphasis on educating individuals about saving for retirement, investment strategies, and managing retirement income.
Please consider my efforts to continue to post documentary clips like this one by supporting my effort using Patreon at patreon.com/allinaday.
