Sixty five is no longer the default retirement age. Many people plan to work beyond their retirement years because we are living longer healthier lives. In addition, many are concerned about not being financially prepared to retire.
Another reason 65 is no longer the default retirement age is because Social Security implemented a phased increase in the normal retirement age from 65 to 67. According to the Social Security web site,
Full retirement age (also called "normal retirement age") had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959.
Do you know when you will you reach your normal retirement age?
Enter your date of birth in the simple tool on the Social Security web site and it will compute the month and year that you will reach your normal retirement age.
You can begin receiving Social Security benefits before your full retirement age. However, if you retire early, your Social Security benefit will be less than if you wait until your full retirement age. You can read more details here.
Don’t feel bad if you did not know that 67 is the new 65. You are not alone. Most people are unaware of the phased increase in the normal retirement age from 65 to 67. According to the 2006 Retirement Confidence Survey, sponsored by the nonpartisan Employee Benefit Research Institute(EBRI), "Only 19% of current workers were able to give the correct age at which they will be eligible for unreduced benefits."
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