Retirement age is one of the most important details when applying for Social Security in any State in the United States. This is because applying for retirement with an Early retirement Age means losing approximately 30% of the amount of the final check. Therefore, we must choose very well when we want to apply for retirement. If we do not know all these details we could have more than one financial problem in the future.
But there is one main reason why we may have to apply for Social Security early. Sometimes we are forced to stop working. In these times of inflation and economic problems, not having a good plan for retirement is commonplace. And when we reach a certain age, we may find ourselves out of work. For that reason, we will be forced to apply early for Social Security.
In this regard, not all seniors have the ability to choose when to start collecting Social Security. Some of these workers are forced to apply for the retirement check. The main problem with all of this is that most have neither savings nor a retirement plan in place. Therefore, many retirees after applying for Social Security retirement have to look for an extra source of income. And many of them also end up working again.
What is the impact of applying for Social Security early?
As a general rule, you can apply for Social Security from the age of 62. In the case of disability, this changes. But for seniors, the minimum retirement age is 62. Thus, you have to wait until at least that age to start retirement. However, as we have already mentioned, this has a great impact on the monthly check.
Collecting an Early Retirement Age on a monthly basis means that we have a benefit of 30% less. This means that if we have contributed a Social Security pension of $1,000, the final figure we will get is $700 per month.
Many adults working in retirement
In the United States, about 58% of workers plan to work during retirement. This can be either full-time or part-time, according to Transamerica Center for Retirement Studies. On top of that, 75% of retirees who continue to work do so for financial reasons. And 28% say they have to continue working because their Social Security pension is not enough and they have no savings.
Ultimately, economic reasons are the most powerful in the field of Social Security. If an American citizen decides not to retire earlier, it is because economically they need to increase both their subsidy and their savings for the future. That is why many of them continue to work after retirement.