Each retirement year grants a different check to United States Social Security beneficiaries. Choosing the right retirement age is essential if we do not want to have problems with our retirement check. In fact, it is the most differentiating element when it comes to shaping our retirement.
Although it is true that it is not the only element that affects the retirement check, it can make us lose a lot of money. If we don’t properly choose the age at which we want to retire, we could lose up to 30% of our monthly Social Security check. And while 30% may not seem like a lot in low numbers, it is a lot of money in large checks.
Therefore, we should plan very well everything related to our retirement. It is not a good idea to leave our Social Security check to chance. It is much better to plan everything well in advance. In case we have to choose the Early Retirement Age we should maximize the other two factors as much as possible. At what age do you plan to retire?
Applying for Social Security at an early age
The minimum age to apply for Social Security in the United States is 62. When we reach that age and have worked a minimum of 10 years, we are eligible for retirement. However, the check offered under these conditions is not worth it. It may be too low, although we must take all factors into account.
Applying for the Social Security benefit at age 62 means losing 30%. This is because that age is the Early Retirement Age. If we want to apply for the benefit at that age, we must watch out for the other two elements:
- Obtain a large salary. The higher our salary as a worker, the better our Social Security check will be.
- Work for 35 years. If it is mandatory to work for 10 years to obtain Social Security, this is not advisable. The Administration calculates the monthly check through the 35 years of highest salary. Each year not worked below that figure will cause the payment to drop considerably.
If we still want to retire at 62 there are certain recommendations to follow. It is not the best age to get a big check, but it is a good age to enjoy retirement longer. In that case, pay attention to:
- Save as much as possible. Every month you work, try to save 3% of your salary. This will ensure that at the end of your working life you will have a lot of money saved.
- Eliminate your mortgage. If you pay your debts before you start collecting Social Security, everything will be much better. Paying off your mortgage, debts and monthly expenses with your retirement check can be very difficult.
- Don’t waste in retirement. Make sure all of your monthly expenses are truly necessary. Payment platforms like Netflix can cost a lot of money per month.
The age to get the biggest Social Security check is 70. If we retire at this age we can reach the maximum 4,555 in 2023. In order to find out what our benefit will be we can make use of the Social Security calculator.