Confirmed Ford issues another urgent recall after detecting oil leaks that could cause fires in its most popular vehicles these are the affected model
Bad news microplastics are found to damage the gut microbiome and could be behind multiple diseases
The DMV confirms it driving without a current inspection sticker can cost you hundreds of dollars and even result in your vehicle being impounded
In the United States, the retirement age is once again changing, and millions of people who believed they could retire will now have to wait. People born in 1959 will not be eligible to receive all of their Social Security payments until they are 66 years and 10 months old, as of 2025! Additionally, if you were born in 1960 or after, you will need to work for an additional two months before you reach your golden years, since your new minimum age will be 67. A minor change, but one that has a direct impact on the moment of our dreams—the ability to quit working!
It is no longer the case that many Americans still think they can retire at age 65.For years, the law has raised the full retirement age gradually; today, we’re at a turning point. The next generation will go directly to age 67, while those born in 1958 might retire at age 66 and 8 months. Those born in 1959 will have to wait an additional two months.
What changed in the retirement age?
A statute enacted in 1983 that gradually raised the retirement age from 65 to 67 years old is the source of this shift. Although it didn’t seem possible, we are now at 67. You won’t be able to say goodbye to your boss until you are 67 years old if you were born in 1960 or later.
What if I want to retire at 62?
I wish you luck. However, you can do that, but be aware that you will forfeit 30% of your monthly benefits. We refer to this as early retirement. You can apply for it as early as age 62. We advise you to go at least past FRA (Full Retirement Age) if your body can support it in order to receive all of the money you have worked so hard to achieve.
What if I wait past 67?
If you choose to postpone retirement, the state will compensate you for doing so. You can receive an extra 8% for each year you delay retirement past full retirement age, with a maximum of 32% if you wait until you are 70.
Strategies to retire early without losing everything
- It s called gradual retirement, and it allows you to reduce your work schedule (working three or four days a week) to keep covering essential expenses like health insurance and food without touching your savings. It s not full-time work, but it s not full retirement either, it s just going in to work for a bit!
- Another piece of advice experts always give is to save between 18 and 24 months of basic expenses in a high-yield savings account, mainly because old age brings a lot of unexpected costs, any bad market moment or an unexpected medical bill and you need to be ready for that.
- Make use of your home, and if you have a spare room or an unused parking space, renting it can bring in between $700 and $1,000 a month. In urban areas, even the parking spot can generate $150 to $300 monthly. No speculation here, we won t snitch.
- Take advantage of every discount you can. Stores like Costco, Home Depot, or Trader Joe s offer part-time jobs with health coverage starting at 20 hours a week.
Tax tactics if you retire early
Prior to making any changes to your 401(k) or IRA, begin by using taxable accounts, such as standard investing accounts. In this manner, you can keep your retirement savings growing and avoid fines.
You are exempt from paying taxes or penalties on the money you contributed, but not the gains. It’s the best way to earn cash without damaging your tax return.
You may be eligible for health system subsidies (Affordable Care Act) and save thousands on health insurance until you are 65 if you maintain a low income in early retirement.
There are methods to make money without returning to full-time employment, such as pet sitting, selling crafts, or teaching online for $30 per hour.
What if Congress raises the age to 68 or 69?
Congress is already considering raising the retirement age over 67, despite the fact that there is currently no official legislation establishing this. Young people today—some of us are already experiencing knee pain—are beginning to recognize that perhaps we won’t be fortunate enough to have a comfortable retirement when we reach our elderly years.
Everything appears to indicate that 67 is here to stay, and we’re yearning to retire already! It will be a hurry later, so start planning for your golden years now!
