No, we’re not counting sheep or bottles of beer on the wall today. We’re talking about retirement age!
Most Americans, according to CNBC, are hoping to retire by the age of 62. Wishful thinking?
62 is also the age at which people can first claim Social Security retirement benefits, so long as they are eligible based on their work records.
However, you should know that the age you start claiming benefits can affect how much you get!
If you wait until full retirement age to claim (66 or 67, depending on when you were born), you will receive full benefits.
If you wait until age 70, you will get an 8% per year benefit increase.
Meanwhile, the House of Representatives approved a retirement bill that would push out the age for required minimum distributions on certain savings accounts to 75, up from the current age of 72. If it passes the Senate, that change could be finalized by 2032.
The trust funds that the Social Security Administration relies on to pay benefits are projected to become depleted in 2034.
I’ve said this before: to protect the program, lawmakers must consider increasing taxes on benefits, raising payroll taxes, or increasing the retirement age.
Or a combination of the three.
That highlights the importance of planning for your retirement now.
Admittedly, that can be tricky because Social Security is likely to change, so I firmly believe you should have an expert who keeps up to date on these changes on your side.