Retirement plans are essential for a large portion of United States citizens. Having a secure future for retirement is really important, as it gives us some really enjoyable golden years. Despite the fact that retirement years with just the Social Security check is not recommended, many retirees have no other money. That’s why it’s really vital to find a way to maximize the check.
While it is true that in order to maximize the check it is mandatory to plan well in advance to apply for retirement, using other factors can be really interesting. It is a very smart move to use all the tools we have at our disposal and one of them is the 401(k) or any other pension fund.
By using the 401(k), Social Security users can delay retirement. It’s not that they delay retirement exactly, but that the application for Social Security checks starts later. It is possible to start collecting the 401(k) and later start SSA retirement checks. Planning is the critical detail in these cases.
How do you use the 401(k) to get better Social Security?
As we discussed earlier, planning is critical in this regard. The Social Security check depends on three different factors and one of them is retirement age. The later a United States citizen files for retirement, the larger his or her check will be. So, finding a way to collect as late as possible is a good strategy.
This is where the 401(k) comes in. If a worker starts saving money with a 401(k) from the time he or she starts working, he or she has a great source of money. If at some point before age 70 he or she stops working and starts cashing in 401(k) savings, the retiree can see big benefits.
It’s the best way to reach age 70 without filing for Social Security. Remember that if we file for retirement at 62, the check is cut by 30%. On the other hand, if we wait until age 70, the check increases and could be as high as $4,558 in 2023.
Is it safe to use 401(k) savings before SSA retirement?
It all depends on how we have set up our savings. When in doubt, the best option is to contact an advisor directly who can advise us. This way we will get the biggest Social Security check possible and we won’t need it until age 70.
The final objective of each person is totally individual, that is why it is important to control each factor of our retirement. Starting from the basis that the minimum to apply for retirement is to be 62 years old and to have worked 10 years, the rest is to check every detail.