Throughout the United States, applying for a Social Security retirement benefit is a very important decision. Once we start collecting Social Security there is no going back, as the monthly check is fixed and cannot be changed. It is true that there are exceptions, but in the vast majority of cases the pension check does not change after we start collecting it. And that is why we have to control a lot of details to the maximum. We can’t leave anything to chance, as it can be a big problem for our golden years.
If we are thinking of applying for Early Retirement Age from Social Security we have to be much more careful. The big disadvantage of this type of retirement is that we lose 30% of the money we have contributed as workers. Therefore, if our check is $1,000, at the end we will get a check of $700 every month. With this reduction, our retirement can be a little difficult.
To avoid this we can follow several tips and avoid many problems. There are 3 fundamental details that make our Social Security pension much lower if we apply for Early Retirement Age. Well, it is not that the check will decrease, but it is that we will have to spend part of this check on these expenses.
Avoid these mistakes before applying for Social Security Early Retirement Age
These three mistakes are much more common than they seem. They need to be avoided so that the Social Security check doesn’t decrease tremendously each time we receive it on a monthly basis.
- Having debts. Everyone has debts, and it is something common in the economic system we have. But when we retire with an Early Retirement Age it is not good to have a lot of debts. They can be a big expense during retirement, a time when we have less money.
- Don’t save before retirement. Save as much money as you can before you apply for Social Security. As we have already mentioned, the income when we are retired is not as large as the salary. Therefore, while we are working we should save as much money as possible to have the best years in retirement.
- Spending money unnecessarily. Stop and think about whether you have any expenses that you don’t really need. In most American households there are a lot of expenses that are not really necessary. From cable TV to subscriptions to different services. Check to see if those expenses are really useful.
Therefore, the biggest tip for these cases is to keep a close eye on your monthly expenses. Try to make a budget with your Social Security income and your regular expenses. This way you will be able to have a better control of your finances.