All United States citizens, regardless of the state in which they live, are eligible for a Social Security benefit. Whether retirement or disability, anyone living in the country of the United States can apply for retirement, as long as they meet the minimum requirements. In that sense, the minimum age to apply for retirement is 62, but it is not the mandatory age. Americans can start collecting retirement at that age, but it may not be the best idea. It all depends on each personal situation, but having options it is always better to look at all of them to see which one is the most convenient.
On the other hand, it is also good to note that the minimum retirement age of 62 years changes a little in cases of disability. For disabled users this requirement is different and totally personal. But if we focus on retirement by age, one cannot apply for Social Security until 62 years of age. The problem with this decision is that it can significantly reduce the monthly check. Knowing all these details, the final decision can be made more easily.
It should be taken into account that the Social Security Administration deducts about 30% of the benefit contributed to retirees who apply for the early retirement age. Therefore, if we have contributed $1,000, we will end up with $700 each month. To get 100% of our benefit, it is mandatory to wait until age 67. With this in mind, we should look at all the details that make applying for early retirement a bad idea.
Why is it a bad idea to apply for Social Security with Early Retirement Age?
There are several reasons why it is a bad idea to apply for Social Security at an early retirement age. That’s why reconsidering the idea of retiring as early as possible should be on our minds. Below, we will look at a list of these reasons:
- Reduced Social Security. As we have previously discussed, we lose about 30% of the retirement check. This causes retirees to lose purchasing power.
- Medicare. Until age 65 we cannot apply for Medicare, so until then we will have to pay medical bills.
- Life expectancy. You may not think about your life expectancy, but it is getting longer. For that reason, we should delay Social Security as long as possible, as it will assure us a higher monthly benefit.
In addition to these reasons there are many more that are important. Each case is totally individual and starting to collect Social Security is a step that we should take when we are absolutely sure about it.