A large portion of United States workers can claim that they do not have enough savings to apply for Social Security retirement. This data is contained in a 2021 survey conducted by TCRS (Transamerica Center for Retirement Studies). And the surprising data doesn’t end there. In addition to this, the majority of Americans said they would apply to the Social Security Administration for retirement without leaving their job.
Thus, most Americans would not be able to apply for Social Security and live on the benefit alone. For that reason, it is important to recognize when we cannot apply for retirement. These 6 clues will help us better know if it is within our capabilities to take retirement and live on this active income alone.
Clues that you can’t afford to retire
These clues are not for everyone. But if you meet some of them, retirement may not be within your reach. In that case, think very carefully before applying for Social Security, as you could be in financial trouble if you do.
- You have a very high debt: people with a very high debt cannot live on retirement alone. Before you start collecting Social Security, you should eliminate your debts. Otherwise you could have many financial difficulties in the future.
- Expenses exceed your income: If you have very high monthly expenses you may not be able to afford retirement. It is not compatible to apply for Social Security if you cannot pay your monthly rent and bills while earning a salary. Keep an eye on that at all times.
- You don’t have an emergency fund: Creating an emergency fund is not an easy task, but it is necessary. If you don’t have one, you will have a lot of problems. It is mandatory to have that extra money for any unforeseen event that occurs in your home.
- You do not have good health insurance: Make sure you have good health insurance before applying for Social Security. If you don’t, you may not be able to afford your medical bills when you retire. Start taking out your insurance early, so you will have better conditions.
- You have not created a social plan: We do not only have to consider the economic aspect. It is also important to think about the social aspect. If you do not have a good social circle to enjoy your Social Security, you will have many inconveniences. It is not good to spend your retirement alone.