The official retirement age in Japan is 60. Social Security recipients will receive a 2.8% cost-of-living adjustment, which may not keep up with the 3% inflation rate. Seniors heavily dependent on Social Security may face benefit cuts. Other countries are adjusting retirement ages and tax structures to address aging populations and pension system sustainability.

Germany is introducing an “Aktivrente,” allowing retirees to earn up to 2,000 euros a month tax-free to address labor shortages and economic growth. The UK’s full retirement age will gradually increase to 68 by 2044. Denmark is raising its retirement age to 70 by 2040. Japan has a low worker-to-retiree ratio and may need to raise its retirement age due to increased life expectancy.

Sweden allows workers to invest a portion of their Social Security equivalent in the stock market. Should American workers have the same option? Many countries have higher Social Security taxes than the US. Raising taxes and removing the earnings cap could help shore up Social Security’s finances. Urgent action is needed to address the financial challenges facing Social Security recipients.

Read more at Yahoo Finance: Here’s what America can learn from Germany, Japan and Sweden about how to save Social Security