There are decisions in the lives of U.S. citizens that have a direct impact on the rest of their lives. One of those decisions is choosing when to apply for Social Security. In the United States, the minimum age to file for Social Security is 62. This does not mean that filing for Social Security at this age is mandatory, but for some people it is advisable. It all depends on the point of view of the situation.
It is true that in order to apply for the Early Retirement Age, that is, retirement at 62 years of age, it is necessary to think very carefully about everything. Financially, we may have some problems if we apply for Social Security at this age. This is due to the fact that the Early Retirement Age implies a 30% discount of the money we have contributed as a worker. While for some it may be a problem, for others it may be something totally salvageable.
It all depends on the retirement plan we have. In order not to go under financially when applying for Early Retirement Age from the Social Security Administration, it is good to make a plan well in advance. The Social Security check may still be small, but we will have a better chance of living a peaceful and comfortable life.
Plan for applying for Social Security Early Retirement Age
One of the first things to consider when planning to apply for Social Security Early Retirement Age is to start thinking about it early. It is not a good idea to decide that we want Early Retirement Age too late. The sooner we start planning, the better. So keep these details in mind.
- Plan everything early and well. If necessary, get a financial advisor to help you check that your plan is a good one. You need to do it well in advance for your retirement to be effective.
- Get an outside source of income. Whether it’s through a 401(k) or IRA plan, get money coming in every month automatically. Starting a business is also a great idea, especially if you can get it going without doing anything.
- Maximize your Social Security check. Applying for Early Retirement Age will mean a 30% reduction in your check. So try to work at least 35 years at a good salary. That will make your check bigger.
- Medicare. At the beginning of retirement you will not be able to use Medicare, but when you turn 65 you will be able to use it. So, as soon as you can, take advantage of this service.
And this way you will be able to have access to a much better retirement. Another tip is to save as much money as you can, but that’s obvious even to people who don’t want to apply for Social Security.