During his tenure as Republican House Minority Leader, John Boehner has advocated an increase in the retirement age from 65 to age 70 in order to help save the Social Security system. He also advocates reducing or eliminating benefits for those with significant income. Listen to this message from The Week dated June 30, 2010.
Whether you are Republican or Democrat, you have to like his honesty. I think we can safely agree that the country cannot sustain social security as the program is today. Boehner is advocating some austere measures to help fix it. I believe this type of change, and probably others, will be proposed within the government as we all continue to tighten our belts, and learn to live in the “new normal.”
Whether this happens sooner or later, we should plan for it now. If you are more than twenty years away from retirement, consider adjusting your retirement planning to incorporate 70 as a target date for retirement with full social security benefits. If you have used 62, the age of eligibility for social security, or 65 / 67, the current ages to receive full social security benefits, be sure to make this adjustment so you will have a better picture of how your retirement plans may change.