No Social Security benefits until age 69? It's possible

The American Academy of Actuaries recently released a study that concluded that "holding the retirement age constant is a certain prescription for future financial problems." The actuaries are suggesting that raising the retirement age has to be the first step in rebuilding Social Security.

This is not so great news for those of us born after 1960 who already have to wait until age 67 to receive full benefits. We could find ourselves not receiving full benefits until age 69 or 70. What does that mean to people trying to save for retirement? Unfortunately, the only answer may be to plan to work longer. Retiring at age 62 will probably only be a viable option for people who are already in their late 50s and early 60s and those who are saving at least 15% of their current income for retirement. People in their early 40s and younger may have to plan to work until they are age 70.

The Academy of Actuaries strongly recommend that the age change be made now so that people have time to plan accordingly. If there is much of delay in changing the system, more drastic changes will likely be necessary. To read more about these changes, check out this recent Wall Street Journal article.