In the United States, the Social Security payment system allows you to apply for retirement at age 62. While it is true that this is the minimum age, not all U.S. citizens can apply for the benefit at that time. To do so, it is mandatory to have been working for at least 10 years. However, having been a worker for 10 years with a salary does not give a good subsidy from Social Security.
Even so, it should be kept in mind that this is the minimum age to apply for retirement. It is not the mandatory age, so we must look at the other alternatives when applying for Social Security. The most common ages to apply for the retirement subsidy are 62, 65 and 67. At 70 years of age it can also be applied for. What’s more, to get the maximum Social Security benefit of $4,194 in 2022, it is mandatory to reach age 70 without previously claiming the benefit.
Likewise, having the Full Retirement Age, that is, retirement at age 67, is a very good option. We can’t get the maximum subsidy of $4,194 per month, but we can get a nice Social Security check to help us pay all the monthly bills. But that’s not the only advantage of waiting a little while to apply for retirement.
There are more advantages, which we’ll look at below, that are a very important change from the Early Retirement Age, which is age 62. Let’s take a look at those advantages.
Advantages of applying for Social Security’s Full Retirement Age
A larger Social Security check is a big advantage, but it is not the only one. We need to think more broadly to clearly see all the advantages.
- More money every month. With a larger Social Security check we will have more money every month to spend. Whether it’s to pay bills or to enjoy travel.
- More time to save. If we wait until age 67, we will work more years. This means we will have more time to save money. This way, our retirement will be more enjoyable.
- Use of Medicare. U.S. citizens cannot start using Medicare until age 65. Therefore, waiting until age 67 to apply for Social Security will help us save on medical as well.
- Less debt. If we work until age 67, we will have more time to pay off debts. This translates into more money at the end of each month, so the Social Security check as the only source of income could be enough.
Each person has different advantages in mind for applying for Full Retirement Age. In the end, the decision of when to apply for Social Security is entirely individual and depends on many factors.