Why 65 should no longer be the target retirement age

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Is there a right age to retire?

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The conventional belief is that retirement occurs at age 65. But is this notion still true?

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In this week’s episode of Money Glow Up, host Tiffany Aliche is joined by Robert Powell, the host of Yahoo Finance’s Decoding Retirement, to explore retirement planning and the age you can realistically expect to retire.

“I don’t think 65 is the right age anymore,” Powell’ explains, adding that “most people born after 1960, their full retirement age, to get a hundred percent of their scheduled benefits from social security, is 67.”

According to the Social Security Administration, while you can start collecting retirement benefits as early as 62, you’re “entitled to full benefits only when you reach your full retirement age.”

“At age 70, that’s when you benefit the most from what are called delayed retirement credits. And that’ll be your highest benefit,” he notes.

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Powell advises waiting until 70 to collect social security not only because you can receive the highest benefit for yourself, but spouses can also receive the highest survivor’s benefit at this age.

However, Powell cautions that the average monthly Social Security benefit hovers around $1,400, and “that’s not necessarily enough for most people to live on.” He recommends that Social Security should not be your sole source of income during retirement.

Together with Yahoo Finance, Tiffany Alice creates a space to share real and inspiring money stories, learn financial fundamentals, and build your future. Step into the classroom with Money Glow Up every Thursday at 12 pm ET with Tiffany Aliche — aka The Budgetnista — to jump-start your financial journey.

This post was written by Shelby Boamah.

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