Preparing for retirement in 2025
Jan 16, 2025
HONOLULU (KHON2) -- The potential cost of life-saving prescription drugs for Medicare recipients is the biggest change in 2025, saving money for about 3.2 million Americans.
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"It's a $2,000 cap on prescription drugs. That's critical because if you've had to purchase drugs for cancer or other types of things that could be two months' worth," said Kealii Lopez, AARP Hawaii State Director.
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And Medicare benefits are changing.
"AARP has workshops and partners with others, if people haven't already worked with their Medicare provider there's a program called SHIP which is the state health insurance program, and they'll help people work through and understand what that is."
The full benefits of Social Security are also changing. According to AARP, you'll reach full retirement age in 2025 if you were born between May 2, 1958, and Feb. 28, 1959.
Under current law, the full retirement age will be 67 for people born in 1960 or later.
"Early on they set the age, and what we will see right is what age you have to be to actually get 100% of Social Security," Lopez added.
Overall, Social Security is going up. Lopez said on average, it's about $49 more a month.
For all people looking toward retirement, Social Security has less than a decade until big changes would have to be made.
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"By 2034 the reserves will have basically disappeared. Doesn't mean people won't get social security but it's potentially going to be a 20% decrease. So I think the other issue AARP wants to encourage people to do is let your congress member know, hey have your people and peers get to the table and fix social security before it's too late."