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Planning to retire at age 65? Better read this. - Investopedia
Age 65 is often thought of as the standard American retirement age, likely because that is the age at which most Americans must enroll in Medicare, the nation’s healthcare program for seniors. And many Americans do actually retire at age 65 – indeed, more than 20% of seniors actually retire at 65, and about 15% take their Social Security benefits at that age. But is that the smart thing to do? Well, be aware that the “full retirement age” (FRA) for Social Security purposes is usually 67 for most seniors today, which means that your monthly SS payment will be about 13% less at age 65 than it will be at age 67.
In the end, when to retire comes down to your financial status and life expectancy. If you have a nice retirement nest egg, and don’t mind the permanently reduced Social Security payment, then retiring at 65 might be a good choice. But, on average, many Americans may find themselves running bit short on cash because they retired at 65, needing to make adjustments in their spending habits, as explained in this Investopedia article by Jonathan Ponciano.
Social Security is a complex topic. If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security or enrollment in Medicare, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of these programs. All questions are answered quickly, at no charge. Learn more about it here… And if you’re wondering if age 65 is the best age for you to claim Social Security, here is an Ask Rusty article which may help.