Full Retirement Age Just Hit 67

 

Fact: In 2025, the Social Security full retirement age (FRA) officially rose to 67 for those born in 1960.
Source: SSA.gov

Why it matters: Many retirees don’t realize claiming Social Security before FRA can permanently reduce monthly benefits by up to 30%. For couples, this also affects spousal and survivor benefits. With longevity increasing, locking in the highest possible lifetime income stream is critical. This shift to age 67 means we need to carefully align your withdrawal strategy, pension elections, and taxable income so you don’t accidentally trigger taxes or Medicare premium hikes. Planning this timing is worth tens (or hundreds) of thousands of dollars over retirement.

 

Summer Try‑Before‑Retirement Trend

 

Fact: More Americans are “test-driving” retirement via phased retirements, part-time work, or sabbaticals before fully leaving the workforce.
Source: WSJ Retirement Trends Report

Why it matters: Retirement is not just a financial transition—it’s an identity shift. Many clients underestimate how much they’ll miss structure, purpose, or work relationships. Trying out partial retirement lets you emotionally adjust and test your financial plan in real life. It’s also a way to preserve income while giving investments more time to grow. I encourage clients to "practice retirement" before making irreversible choices like pension elections or downsizing.

 

 

3 Bond Yields Are High—But Watch Out

 

Fact: CDs, short-term Treasuries, and money markets are paying ~4–5%—their highest yields in over a decade.
Source: Bloomberg

Why it matters: Many retirees are rushing into higher-yielding instruments—but beware of two risks: reinvestment risk and early redemption risk. If inflation persists and rates rise you will fall behind or even worse, lose value and fall behind in bond fund’s case. Utilizing shorter terms in CD’s and some treasuries then exposes you to lower rates when and if they come. MYGA’s solve some of these problems and is why they have become so popular but your safe/stable portfolio should not only be fixed rate investments. Diversify to protect from inflation!

 

 

High Uncertainty

 

Fact: Over 90% of retirees say inflation is their top financial fear—even above market volatility.
Source: Allianz Retirement Survey 2025

Why it matters: Retirees live on largely fixed incomes, but costs for healthcare, housing, and food are still climbing. A static income stream quickly erodes purchasing power. That’s why your portfolio and income plan should always be prepared for inflation. Even a well-balanced portfolio needs periodic adjustments to keep pace with rising costs—this is a core part of any retirement income review.

 

 

Debt Is Derailing Retiring Dreams

 

Fact: Nearly half of Americans 50+ carry some form of debt, which creates stress and undermines retirement readiness.
Source: AARP Debt and Retirement Study 2025

Why it matters: Entering retirement with high-interest debt is a hidden threat. Mortgage, credit card, and auto payments can consume 30–40% of a retiree’s monthly income. This leaves less room for travel, health costs, or family support—and makes portfolios more vulnerable to downturns. A key part of pre-retirement planning is helping clients get to a “lean debt” or debt-free position. We often prioritize debt reduction before we boost taxable savings late in the game.

 

FRA Increase Could Hit Market

 

Fact: A proposed change would gradually raise the full retirement age to 69 by 2033, potentially reducing future benefits by ~13%.
Source: CBO / Social Security Reform Proposal

Why it matters: Today’s 50-somethings could be directly impacted. If enacted, this forces a larger portion of retirement income to come from personal savings. Many clients in this age group are not contributing enough to offset potential benefit cuts. Proactive modeling—showing the gap and adjusting savings rates accordingly—can help them stay on track. It also makes guaranteed lifetime income tools more valuable in creating predictable retirement paychecks.

 

 

Retirement Reinvention Reaches Inflection

 

Fact: A record 4.2 million Americans will turn 65 this year, creating the largest wave of retirees in U.S. history.
Source: Pew Research Center

Why it matters: Retirement is no longer a “one size fits all” experience. With so many retirees entering this phase simultaneously, competition for services (housing, healthcare, leisure travel) is increasing. It also means more retirees will need personalized financial planning—not cookie-cutter approaches. Our clients can benefit from being proactive and creative about how and where they retire, which assets they draw from first, and how they engage with new opportunities.

 

Recession Probability

 

Fact: 60% of Boomers say they expect to work past their Social Security eligibility age.
Source: Transamerica Center for Retirement Studies

Why it matters: Working longer can be a smart financial and psychological strategy—but it requires careful planning. Earning income after starting Social Security could trigger unwanted benefit reductions or higher taxes. Plus, IRMAA surcharges on Medicare premiums can surprise those who keep earning. Coordinating work, income timing, and healthcare strategies is key to helping clients "work smart" rather than just "work longer."

 

 

Advisors Embrace Flexible Income Tools

 

Fact: More retirement plans and financial advisors are incorporating annuities and flexible guaranteed income options.
Source: LIMRA Secure Retirement Institute

Why it matters: Market volatility and longevity risk are making retirees crave more certainty. Layering guaranteed income (via annuities, pensions, or insurance-based solutions) with flexible withdrawal strategies gives clients confidence they won’t outlive their money. The key is using these tools judiciously—avoiding high fees and ensuring they fit within the broader plan. I often build income "floors" first, then optimize investment growth around that foundation.

 

Anxiety Isn’t Just About Money

 

Fact: Financial stress now ranks as one of the top five causes of health issues among retirees.
Source: American Psychological Association / Retirement Wellbeing Study

Why it matters: Retirement is as much about emotional wellbeing as financial security. Clients who feel anxious about their finances often spend less, isolate more, and experience lower quality of life. Our role as advisors is not just technical—we’re also coaches and educators. Regular planning reviews, clear communication, and permission to spend (when the plan supports it) can greatly improve retiree wellbeing. Sometimes peace of mind is the best return on investment.

 

 

✅ Final Takeaways

👉 Retirement planning is evolving quickly—what worked 10 years ago may no longer be enough.
👉 Clients face new risks (inflation, benefit changes, longevity) and new opportunities (flexible income, phased retirements).
👉 The most valuable advisor relationships today combine technical expertise with holistic guidance—financial, emotional, and lifestyle.

My promise: We’ll continue to bring you the latest insights so you can navigate retirement with clarity, confidence, and peace of mind.