In the United States, the minimum age to apply for a retirement benefit is 62. Before that you can retire and not work anymore, but you will not be able to collect the Social Security financial benefit until you reach that age. In addition to that, it is also mandatory to be a contributing worker for a certain period of time before you can earn the right to this economic benefit. On top of all this, applying for Social Security retirement early means earning less money monthly, but it can be worth it.
There are reasons why applying for Early Retirement Age is the best option. Despite receiving less money monthly with this form of Social Security retirement, it doesn’t matter if we do these actions with an elaborate plan and good economic stability. It all depends on how we approach the situation.
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Reasons to apply for the Social Security FRA
Let’s take a look at a list of 10 reasons why applying for Social Security Early Retirement Age is a good idea. Some of these ideas will fit your way of life and some will not. The final decision is yours, but the most important thing is not to lose part of your retirement benefit.
1. You are planning your end
It is very difficult to know when the end of life will be, but sometimes we have to think about it. If we are in good health, we can delay Social Security payments until age 67 or 70, but it can also be risky. If we use an SSA benefit calculator and see that at 62 we will have enough money to live on, taking it early is a good idea. We never know what will happen in the future.
2. You have a shorter life expectancy
This point is related to the previous one. If for medical reasons your life expectancy is a little shorter, applying for the Early Retirement Age from Social Security is the best option. This way, you will be able to enjoy more years of your monthly payments, even if the amount of each payment is less. Take advantage of the opportunity offered by the SSA to apply for retirement as soon as possible.
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3. You have to pay your debts
If you are in a bad employment situation and have debts to pay, applying for Early Retirement Age is a great option. This way you will be sure to receive a good amount of money every month. If you choose this option, remember that in some states you will lose part of the benefit in state taxes, so keep this in mind.
4. You cannot work
This point is also important. If you can no longer work, applying for Social Security as soon as you turn 62 is the best option. This way you will have more financial stability. This way you will be able to pay your bills every month without any problem and without the obligation to work.
5. You work only part-time
If you can only work part-time, either because of health reasons or because you cannot find a full-time job, the ERA can also be a good solution. In doing so, keep in mind that if you earn more than $19,560 a month, you will lose $1 for every $2 over that amount. That discount is made on your benefit automatically. Even so, it is a good option to be able to have economic power and continue collecting Social Security at the same time.
6. No one depends on your Social Security
After you start collecting Social Security, both your spouse and a disabled child are entitled to a benefit. The total benefit of this style is between 70% and 100% of the amount of your personal benefit. Therefore, the higher your benefit, the higher your spouse’s or disabled child’s benefit will be. If you have no one collecting a benefit dependent on yours, the better so you can decide to apply early.
7. You have already worked for 35 years
The rule for getting a good Social Security benefit is very simple. There are three fundamental factors: the retirement age, the years worked and the salary during the years as a worker. If you have already worked for 35 years with a good salary, it may be best to apply directly for your retirement at 62 and enjoy the rest.
8. You are going to make investments with your Social Security
If you have any ideas in the investment world, your Social Security could stretch a lot further. Regardless of whether you apply for the ERA or not, investing some of that money to later recoup the benefits helps you make the final decision. However, this plan is not 100% secure, so be careful not to risk too much with your money.
9. You plan to start a business
If after years of working you want to start a business, the SSA can help you. If your pension is not too low, you can get a good benefit to make your business work well. Within years you can recoup your investment and get money from both your retirement and your own business.
10. You are worried about the future of Social Security
Many people worry about what will happen to Social Security. Some studies have shown that after 2035 the SSA trust funds will disappear. Thus, retirement benefit recipients will not collect 100% of their pensions, but about 80%. If you can claim your benefit before 2035, doing so might be a good idea to avoid problems.