There are many different retirement options available in the United States. Among all these possibilities, the Social Security Administration offers the possibility of retiring at age 62. This is called Early Retirement Age and has many advantages, but a big disadvantage. This big disadvantage makes the rest of the advantages seem few, but for many people it is enough.
In any case, retirement age is a totally personal thing. Each individual must decide when is the best time to apply to the Social Security Administration. Even so, you can always ask a specialized advisor to see what is the best time to stop working. It is good to keep in mind what is the best way to maximize your Social Security benefit, as this way we will get a better amount of money.
The disadvantage of Social Security at 62 years of age
In this sense, the worst thing about applying for retirement at age 62 is the monthly amount. Therefore, collecting Social Security for the first time at age 62 makes your benefit much lower. Even if you get a very high benefit thanks to working for 35 years, it may not be enough. The SSA will reduce your benefit by about 30% if you apply for Early Retirement Age.
However, it’s not all disadvantages in this area. Applying for Early Retirement Age (ERA) has several advantages that for some people are more important than the 30% reduction:
Longer time to enjoy retirement – If you apply for retirement at age 62, Social Security will pay you for longer.
Better health – At 62 you will be in better health than at age 70, so you will be able to enjoy more of your retirement money.
Rest – You’ll start resting earlier, so you’ll have more energy and live better in the years you collect Social Security.