There are people who assume that they will be able to retire as soon as they become eligible to receive Social Security benefits. At the present time the full retirement age for individuals born between the years 1943 and 1954 is 66 years of age.
After this the full retirement age rises by two months each year, so if for example you were born in 1955 your full retirement age would be 66 years and two months. It goes up in this manner year-by-year until 1960. Americans who were born in 1960 and after reach full retirement age upon celebration of their 67th birthdays.
It should be noted that the above parameters are in place as of this writing, but they’re not etched in granite into perpetuity. Because of the federal budget deficit there’s a lot of talk among legislators on Capitol Hill about making cuts to the Social Security and Medicare programs. One of the first things that they would consider doing to cut costs would be to raise the retirement age. This is something to keep your eye on as your retirement years grow nearer.
Statistics indicate that a lot of people rely too heavily on Social Security and as a result find themselves unprepared for retirement. The average Social Security benefit as of this writing is $1072 per month. Clearly, this is not enough for most people to live on comfortably. Yet, according to the Social Security Administration 64% of the people who receive Social Security say that it is their primary source of income.
Two thirds of the respondents to a recent AP-LifeGoesStrong.com that was conducted among baby boomers said that they would continue working after reaching full retirement age. 35% of these people said they would be doing so simply to make ends meet.
If you want to be able to enjoy your retirement years to the utmost you’re going to have to have resources to draw from beyond Social Security. If you don’t already have a strategy mapped out, arrange for consultation with an experienced retirement planning attorney who will provide you with a path that leads to the fruition of all of your retirement goals.