Overview
- New Kiplinger guidance urges would-be retirees at age 67 to gauge financial, social and lifestyle readiness, noting 67 is full retirement age for those born in 1960 or later and that Medicare eligibility begins at 65.
- The Social Security Administration projects its key trust fund could be exhausted in 2032, which would trigger an estimated 24% across-the-board cut without congressional action, though benefits would continue to be paid from ongoing payroll taxes.
- AEI’s Mark Warshawsky says combining the retirement and disability trust funds could extend solvency to 2034 with 81% of scheduled benefits payable, and he outlines a contingency plan focusing temporary cuts on ages 62 to 74 based on net-worth thresholds while exempting disability beneficiaries.
- Separate research from Andrew Biggs and Kristin Shapiro proposes capping monthly benefits at $2,050 (2024 dollars) with progressive reductions for higher-income recipients, which they estimate would lessen cuts for most beneficiaries without increasing elderly poverty.
- A 2025 Schroders survey found 44% of non-retirees plan to file before 67, with 36% citing fears about Social Security’s future, even as advisors stress decisions should weigh health, marital status, taxes and that delaying past full retirement age boosts payments by roughly 8% per year up to age 70.