Still Think You Can Retire at 65? - Social Security will mail annual benefit information that includes at what age the individual can receive full benefits - includes loan rate survey information - Brief Article

Kiplinger's Personal Finance Magazine, Sept, 1999 by Mary Beth Franklin

Most workers have to wait longer to get full social security benefits.

Forget about checking with social security to see if your earnings have been properly recorded and to keep tabs on how much you can expect in benefits. You no longer have to ask.

Starting in October, the agency will automatically mail annual updates to about 125 million workers age 25 and older. Your statement will show how much of your income was taxed each year for social security and medicare, and give you a clear picture of the retirement, disability and survivor benefits you're building up. About ten million statements will be mailed each month, timed to arrive three months before your birthday. (The cost of getting the word out? About $75 million a year.)

The new statements will also include a critical piece of information that most people don't know: how old you need to be to collect full retirement benefits. The old standby answer--65 years old--is no longer true for the vast majority of workers. The age for receiving full benefits is gradually increasing from 65 to 67. Anyone 61 or younger today, in fact, has to wait past 65--at least an extra two months, and maybe as long as two years, depending on the year you were born. Regardless of when you can claim full benefits, you can sign up for social security as early as age 62, but your benefits will be permanently reduced by up to 30%.

Although the rising retirement age affects 96% of today's workers, only 16% know it, according to a recent survey by the Employee Benefit Research Institute. "It's a shocking and potentially disastrous statistic," says EBRI president Dallas Salisbury, indicating that Americans may be less prepared for retirement than they think.

BORROWING LOW LOAN RATES AROUND THE U.S.

[ILLUSTRATIONS OMITTED]

                                                      RATE/
                                                   DESCRIPTION
                                                     (INDEX
Baltimore                      LENDER              PLUS MARGIN)

Fixed-rate 30-year   Arundel Federal Savings       7%/0 pts.
One-year ARM         Crestar                       5.25%/2 pts.
                                                   (Treasury
                                                   index + 2.88)
Home-equity line     Susquehanna                   7.5%/2 yrs.,
                                                   $10,000-$250,000
                                                   (prime + 1)
Car loan             Susquehanna                   7.24%

New Orleans

Fixed-rate 30-year   Eureka Homestead              7.5%/1 pt.
One-year ARM         Hibernia National             5.25%/1 pt.
                                                   (Treasury
                                                   index + 2.75)
Home-equity line     Regions                       7%/6 mos.,
                                                   $10,000 minimum
                                                   (prime)
Car loan             Regions                       7.5%/$35 fee

Minneapolis

Fixed-rate 30-year   Midway National of St. Paul   7.63%
One-year ARM         Firstar Bank of Minnesota     5.88%/1 pt.
                                                   (Treasury
                                                   index + 2.75)
Home-equity line     Firstar Bank of Minnesota     5.99%/6 mos.,
                                                   $5,000 minimum
                                                   (prime), $50 fee
Car loan             Midway National of St. Paul   7.85%

Houston

Fixed-rate 30-year   Bank of America (Texas)       7.13%/3 pts.
One-year ARM         Bank of America (Texas)       5.25%/3.13 pts.
                                                   (Treasury
                                                   index + 2.88)
Home-equity line                                   HOME-EQUITY
                                                   LINES ARE NOT
                                                   AVAILABLE IN
                                                   TEXAS
Car loan             Coastal Banc                  8.25%

San Francisco

Fixed-rate 30-year   California Federal            7%/3.28 pts.
One-year ARM         Bay View                      5.75%/1 pt.
                                                   (Treasury
                                                   index + 2.75)
Home-equity line     California Federal            5.75%/6 mos.,
                                                   $10,000-$250,000
                                                   (prime + 1.25)
Car loan             Citibank                      8.5%

                         TELEPHONE
Baltimore                  NUMBER

Fixed-rate 30-year      410-355-9300
One-year ARM            800-273-7827
Home-equity line        800-787-4321
Car loan                800-787-4321

New Orleans

Fixed-rate 30-year      504-822-0650
One-year ARM            800-262-5689
Home-equity line        800-734.4667
Car loan                800-734-4667

Minneapolis

Fixed-rate 30-year      651-643-8416
One-year ARM            800-784-9777
Home-equity line        800-784-9777
Car loan                651-643-8416

Houston

Fixed-rate 30-year      800-247-6262
One-year ARM            800-247-6262
Home-equity line
Car loan                713-435-7863

San Francisco

Fixed-rate 30-year      800-225-3334
One-year ARM            800-229-8439
Home-equity line        800-225-3334
Car loan                800-756-7047