In any of the United States, the minimum retirement age is 62. This is when we apply for Social Security because of age, of course. If you apply for Social Security for other reasons, this age varies greatly. But if we focus on retirement age and not on Social Security disability or widowhood, we have to consider the exact timing.
If we apply for Social Security retirement too early, we may find ourselves with a very small retirement check. On the other hand, if we delay retirement too long, we may find ourselves with too little time to enjoy it. That’s why we have to strike a balance between one time and the other.
In any case, there are compelling reasons to delay retirement age. It is tempting to apply for Social Security at age 62, but waiting a bit may allow us to get a higher benefit and thus live better on a monthly cheque.
3 reasons to delay retirement age
In order to apply for Social Security, you must reach 62 years of age and have worked for at least ten years. This makes the retirement age acceptable. However, the cheque with these conditions is too small. So, let’s look at the reasons why we should delay the retirement age as much as possible.
- Our cheque will be bigger if we retire later. The longer we delay retirement, the bigger our check will be. If we file for Social Security at age 62, the check will take a 30% reduction of the money we have contributed.
- More time working = more money saved. Saving money during the years worked is essential to have the best possible retirement. Therefore, if we apply for Social Security later, not only will our cheque be bigger, but also our savings source will be bigger.
- Medical expenses. It is very common for medical expenses to take a large portion of our Social Security check. If we wait until age 65, this will change somewhat. At that age we will have access to Medicare, which means that many of the medical bills we will not have to pay. Before age 65 we will not be able to access this program on a regular basis.
In addition to these three reasons, other personal aspects must also be taken into account. It is possible that we do not want to continue working -or we cannot- after the age of 62. In that case, it is a good idea to apply for Social Security. Each case is unique and people should choose their retirement age when it is best for them, but these are three compelling reasons to delay this time.