One of the big decisions United States citizens have to make is when to start collecting Social Security. Retirement age, therefore, is a time that determines the future of retirees. For that reason, a decision cannot be made without first thinking about the best option. For people without a proven disability, the minimum retirement age is 62, but that does not mean that we have to apply for retirement at that time. The Social Security Administration allows you to apply for retirement at any age, starting at age 62.
That is why it is necessary to investigate with determination what is the best retirement age for us. While it is true that each case is completely individual, there are general rules that can be applied to many different American citizens. The rules are the same for everyone, so choosing the timing of Social Security can be done through knowing these rules well. After knowing what we can do, the final choice is entirely individual.
However, it should be noted that there is a big difference between applying for Social Security with a retirement age at 62. Doing so at this age can be a huge mistake for a large number of retirees. Starting to collect the retirement subsidy at this age means collecting 30% less than the money we have contributed with our salary as a worker. Therefore, we must take this very much into account if we are thinking of applying for early retirement.
The Social Security retirement age mistake
While it is true that collecting 30% less in monthly Social Security checks is a bad thing, it also depends on the personal situation. We can start collecting retirement at this age as long as we have some savings to deal with the situation. On the other hand, we can also look for an alternative source of income. It is also good to remember that we can continue working despite applying for Social Security, although there is a limit on the number of hours.
Another element to take into account in order not to make the mistake of choosing the wrong retirement age is health. If we are in excellent health, waiting until Full Retirement Age may be the best option. This retirement modality is at 67 years of age and allows us to have 100% of the money we have contributed as workers.
As you can see, each of the cases is totally different. For many people, continuing to work until age 70 is the only option, but applying for Social Security after this age has no extra bonus on our monthly check.