"It used to be that Social Security's FRA was 65, which is the same age when Medicare eligibility begins for most enrollees. To conserve funds for Social Security, lawmakers changed the program's FRA years ago to a range of 66 to 67. For people with a birth year of 1959 who turn 66 this year, FRA is 66 and 10 months. But for those turning 66 in 2026, FRA is 67. In fact, anyone born in 1960 or later has an FRA of 67."
"The Federal Reserve puts median retirement savings for seniors ages 65 to 74 at just $200,000 as of 2022. Chances are, that number has increased since then. But even so, this data tells us that many seniors do not have a lot of money socked away for retirement. People without much savings may not be able to afford a hit to their Social Security benefits."
Claiming Social Security as early as age 62 can permanently reduce monthly benefits. Full retirement age (FRA) moved from 65 to a range of 66 to 67 years to conserve program funds. Individuals born in 1959 reach FRA at 66 and 10 months, while those born in 1960 or later have an FRA of 67 starting in 2026. Many seniors have limited retirement savings, with median savings around $200,000 for ages 65 to 74 as of 2022, which may make reduced benefits difficult to absorb. Social Security faces revenue shortfalls that could prompt further changes to FRA.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]