The concept of retirement dates back to ancient Rome around the 13th century B.C., when the empire introduced pensions for Roman Legionnaires who had served for 20 years. Fast forward to the 18th century, Cotton Mather, a New England Puritan minister and author, used his influence to advocate for the elderly to retire. He encouraged them, saying, “Be glad of dismission... Be pleased with the retirement which you are dismissed into.”
In 1883, Otto von Bismarck, the German chancellor, proposed a policy to provide financial support to citizens aged 65 and older, encouraging them to leave the workforce. While initially a political strategy to counter Marxist ideologies gaining traction, this initiative soon became law in 1889. By then, German citizens over 70 were eligible for pensions. This model quickly gained traction and was adopted by other governments, sparking the widespread creation of retirement systems around the world.
By the mid-1800s, the U.S. government began offering public pensions to select municipal employees, particularly in large cities, including firefighters, police officers, and teachers. In 1875, American Express became the first private company to introduce pensions for its employees. By the 1920s, private pensions had become common, with industries ranging from railroads to banking offering pension plans to their workers. Then, in 1935, under President Franklin D. Roosevelt’s administration, the U.S. government established the Social Security Act, requiring workers to contribute to their future retirement, setting the official retirement age at 65.
The 20th century saw the rise of the retirement industry, and Florida emerged as a top retirement destination for the white-collar class. Retired workers were often referred to as senior citizens, and the American Association of Retired Persons eventually became “AARP Inc.” Today, however, governments and organizations across the globe are introducing initiatives to encourage older individuals to remain in the workforce for as long as they are able, reflecting a shift in societal views on aging and retirement.
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