{"id":31547,"date":"2025-07-29T09:56:17","date_gmt":"2025-07-29T09:56:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/31547\/"},"modified":"2025-07-29T09:56:17","modified_gmt":"2025-07-29T09:56:17","slug":"goodbye-to-retirement-at-67-the-united-states-plans-to-pass-a-reform-to-further-delay-the-retirement-age","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/31547\/","title":{"rendered":"Goodbye to retirement at 67 – The United States plans to pass a reform to further delay the retirement age"},"content":{"rendered":"

The never-ending controversy around retirement age<\/a> is back on cable news, in your group texts, everywhere! Now, the latest rumor says Uncle Sam is gearing up to shove full benefits past age 67.<\/p>\n

Relax: the rules you live under today haven\u2019t changed\u2014yet. But the talk is real, the stakes are big, and your retirement plan needs to be nimble.<\/p>\n

Retirement \u2014 What actually changed<\/p>\n

The last time Congress truly moved the goalposts was 1983, when lawmakers nudged the full retirement age from 65 to 67 in two\u2011month steps. That slow climb is still playing out: if you were born in 1959, your FRA is 66 years and 10 months starting in 2025; for 1960 and later, it\u2019s 67 flat. Nothing beyond that is law.<\/p>\n

Social Security\u2019s main trust fund is projected to run short around 2033\u20132034, triggering an across\u2011the\u2011board cut to roughly 77\u201381% of scheduled benefits unless Congress acts. To avoid that, some budget plans suggest raising the FRA to 69 (or even 70) over time.<\/p>\n

The Republican Study Committee floated 69; the Congressional Budget Office modeled options to push it higher by adding two months a year. None have cleared both chambers.<\/p>\n

What a later FRA could do to your retirement check<\/p>\n

Move the finish line and two things happen: the \u201cfull\u201d amount arrives later, and claiming at 62 slices even more off the top. Today, filing at 62 trims up to 30% for those born 1960+. If FRA jumps, that cut deepens unless Congress redesigns the formula.<\/p>\n

In plain dollars, a $2,000 FRA benefit might drop to roughly $1,400 at 62 now \u2014shave a few more points if FRA creeps up.<\/p>\n

Bridging the gap if you leave work first<\/p>\n

You may want retirement on your terms, not Congress\u2019s. These tactics buy time:<\/p>\n

Phased retirement: Negotiate three or four days a week; even 15 hours can cover premiums and groceries.
\nCash runway: Park 18\u201324 months of expenses in a high\u2011yield savings or money\u2011market account so you don\u2019t sell stocks in a slump.
\nMonetize idle assets: Rent a room ($700\u2013$1,000\/month in many markets) or that spare parking spot.
\nPart-time with benefits: Chains like Costco, Home Depot and Trader Joe\u2019s offer health coverage at ~20\u201328 hours.<\/p>\n

Tax\u2011smart withdrawal moves around retirement<\/p>\n

Tap taxable brokerage accounts first, letting IRAs and 401(k)s compound. Pull Roth IRA contributions (not earnings) tax\u2011free if you must. Keep your modified AGI low to qualify for ACA subsidies until Medicare at 65<\/a>. Every dollar you don\u2019t need to report could save hundreds on premiums.<\/p>\n

For every year you wait past FRA up to 70, Social Security boosts your check by roughly 8%. That\u2019s a guaranteed return few investments match today. Past 70 the meter stops, so don\u2019t delay beyond that point.<\/p>\n

How to Retire Without Counting on Social Security<\/p>\n

If you\u2019re in your 40s or 50s and worried that Social Security won\u2019t be there for you, now\u2019s the time to make a plan. Start by figuring out how much money you\u2019ll need each year to live comfortably. Then, aim to save about 25 times that amount before you stop working.<\/p>\n

Use retirement accounts like a 401(k), Roth IRA, or even a health savings account to build your savings faster and avoid taxes<\/a>. If you have extra money, put it in a regular investment account with low fees.<\/p>\n

Try living on a little less now so it won\u2019t feel hard later. Also, think about doing part-time work or turning a hobby into income in retirement. Keep some savings in cash so you\u2019re covered in emergencies without needing to sell investments. The key is to rely on your own money, not the government\u2019s.<\/p>\n

Retirement at 67 isn\u2019t gone, but it isn\u2019t sacred either. Build a plan that survives a later FRA: more savings, smarter withdrawals, maybe a side gig. Laws can change fast. Your retirement should be ready sooner. If anything, make sure you put some of your eggs in another basket\u2026 not just the Government\u2019s.<\/p>\n","protected":false},"excerpt":{"rendered":"The never-ending controversy around retirement age is back on cable news, in your group texts, everywhere! Now, the…\n","protected":false},"author":2,"featured_media":31548,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-31547","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/31547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=31547"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/31547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/31548"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=31547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=31547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=31547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}