Making hasty decisions about Social Security in the United States can be very costly. Although retiring as soon as possible may seem like the best option, many citizens are losing thousands of dollars simply by not planning ahead and strategizing.
Content creator Lynn, from Her Second Half, is clear about this: making the wrong decisions about retirement can cost you up to $180,000 over your years as a Social Security beneficiary. Her advice is especially aimed at those who are considering applying for benefits at age 62 without considering the long-term impact.
Social Security check specialist Lynn insists that it’s not just about choosing a random age, but about knowing the rules of the game. As she explains in one of her most popular videos, the key to not losing money is understanding how the system works and what we can do to get the highest possible monthly check.
Why shouldn’t you retire at 62?
Lynn proposes something that many people don’t want to hear: don’t retire at 62, even if you’re eligible to do so. While it may seem like a logical decision after a long working life, this choice often significantly reduces the amount of your monthly check.
Applying for Social Security at age 62 means getting a reduced benefit for life, as it is calculated before you reach full retirement age. According to Lynn, this difference can amount to a cumulative loss of up to $180,000 in total over the following decades.
@hersecondhalf $180,000. That’s the amount of Social Security benefits people leave on the table by not claiming the correct strategy or the right timing of their Social Security benefits. #socialsecurity #hersocialsecurity
That doesn’t mean that retiring at 62 is always a bad idea. There are cases where it may be necessary or even advisable. The important thing is for each person to assess their financial and employment situation and clearly understand how that decision will affect their long-term income.
As Lynn points out, the difference between making an informed decision and acting on impulse can translate into much lower checks for 20 or 30 years. That’s why understanding how the system works and planning ahead is critical for every American.
How can you maximize your Social Security payment?
For those who want to get the largest possible Social Security check, there are three keys that have proven effective. These are simple strategies, but they require consistency and good planning:
- Delay retirement: Each year you delay applying for Social Security after full retirement age (between 66 and 67), the monthly amount increases by approximately 8%. By the time you reach age 70, that increase can make a noticeable difference.
- Work for at least 35 years: Benefit calculations are based on your 35 highest-earning years. If you have years without work or with low wages, these reduce your average and, therefore, the final amount of your check.
- Earn more during your working life: Increasing your income over the years not only improves your current quality of life, but also directly impacts your Social Security benefit by raising your average earnings.
Lynn also mentions in her video that financial education about Social Security should be part of any retirement planning. Understanding the basics, simulating different scenarios, and consulting with experts can help you avoid costly mistakes.
In the end, everyone has a different story and different circumstances. But one thing is certain: knowledge and planning ahead are the best tools for ensuring you don’t lose any of the money you’ve worked hard to earn.