How much do you need to retire at 55?

Good afternoon. Today's issue is about the money decisions that look settled until you actually run the numbers. What's good for your money is changing in today's economy. Knowing the changes is how to stay ahead.

On The Money Today:

Let's get into it.

Claiming at 62 means smaller checks, but eight extra years of them. Claiming at 70 means bigger checks that arrive later. The two add up to the same total money around age 83, and every year you live past that, waiting comes out ahead. It's the same tradeoff at the center of today's featured story on what you actually need saved to retire at 55, 62 or 65 — the age you pick doesn't just change your savings target, it changes what Social Security pays you for the rest of your life.

A new tax break for Americans 65 and older sounds like good news for every retiree. But the fine print shows most of the benefit is landing somewhere specific, and it comes with a cost that could hit your Social Security check down the road.

Why it matters: If you're 65+ and bring in less than $75,000 solo (or $150,000 as a couple), you likely qualify for up to $12,000 in extra deductions right now, but the window closes after 2028. Miss it, and moves like Roth conversions get a lot more expensive later.

If you want to ensure you’re maximizing your retirement contributions, it could pay to speak to a qualified financial advisor. Research from Vanguard shows working with an advisor can add about 3% to net returns over time — a difference that can become substantial.

Finding the right advisor is simple with Advisor.com, which connects you with licensed financial professionals who can provide personalized guidance.

Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.

If you claimed Social Security early and kept working, you already know the sting of watching part of your check get clawed back. A new bill in Congress could end that, but the tradeoff might not be as simple as it sounds. What it means for you if you're still working: you could keep thousands more of your benefit this year, at the cost of a steeper cut down the road.

Why it matters: The bill would erase the earnings test entirely for people below full retirement age, but critics warn it could push Social Security's 24% benefit cut up from 2032 to sooner, meaning the extra money now could cost everyone more later.

Everyone loves the idea of retiring early, but the actual price tag for doing it might floor you. Retiring at 55 instead of 65 could cost you an extra $1.8 million, and the gap comes down to two federal programs you don't qualify for yet.

Why it matters: Health insurance alone runs about $15,000 a year for a couple retiring before Medicare kicks in at 65, a cost that disappears entirely once you cross that age threshold.

The correct answer is B) 25%. Roughly 1 in 4 households headed by someone 65+ have a net worth over $1 million, according to Federal Reserve data. "Senior" and "wealthy" overlap more than people assume, which is exactly why a tax break aimed at 65+ ends up skewing toward the top earners in that group.