In 1983, the retirement age for Social Security was changed by Congress from 65 to 67 beginning in the year 2000. It was designed to go up steadily so that everyone born in 1943 will have their retirement age increased to 66. It will then remain at 66 for 12 years and then steadily increase to age 67 for workers born after 1959.
Therefore, if you are a single parent born in 1943 or thereafter, your retirement age will be either 66 or 67.
However, this retirement age only pertain to those whose retirement funds are from the Social Security system therefore highlighting the unequal basis of the retirement system in this country. More on this later. In considering your retirement, if you are looking forward to receiving Social Security funds when you retire, realize that there are no funds in the Social Security "lockbox". The fact is there is no "lockbox". It is a complete fiction. Every dollar taken from your salary in FICA taxes is sent to the General Fund and is spent by the politicians as fast it comes in. The Social Security is currently sending out more money than it's taking in. It is hemorrhaging and soon will be completely bankrupt.
It is important therefore as a single parent and the sole support for your children and yourself that you seriously consider and then act on this matter.
Here are three strategies to do so:
1. Let your Senators, Representative, and President know that you realize that the Social Security will soon be bankrupt and that you no longer want to participate in it -- that you want equality in the retirement system and to own your retirement plan rather than be at the mercy of 535 politicians who can decide much you can receive and when you can receive it.
2. While actively engaging in the political process, you must concurrently study the options for building a substantial fund that can be annuitized, partially or fully, and also provide for your children if you experience an untimely death. Some politicians try to frighten you by saying that by owning your retirement plan, you would irresponsibly invest it in the volatile stock market and when it's time for you to retire, you will not have any money to retire on. This is a fear tactic and need to be rejected.
Look up the retirement plan that your Representatives and Senators have established for themselves. Afterwards, let them know that you want to have the same retirement plan that they have. Keep in mind that not only federal employees, but across the country, county, state and municipal employees often can retire as early as age 55 or even younger with roughly 80% of an average of their last three years of income. Tell them that you want to be able to do the same.
3. Finally, realize that once you own your retirement plan, you may have several options that range from choosing highly risky investments to those with hardly any risk at all. In planning for your retirement, stay away from risky investments. Analyze what the pension funds for public employees and what major insurance companies invest their money in. You will see a wide variety of different investments. However, you will find that a majority of their money will be in one sector primarily, bonds. Become knowledgeable of the different types of bonds, and also consider fixed annuities and the guarantees cash value and self-completing feature of life insurance.
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