Within the United States Social Security Administration there are several elements to consider. These elements can be decisive when applying for a retirement pension check. In general, there are three key points, but there is one of these elements that can cause us to lose a large part of all the Social Security that we have managed to contribute. In order not to make this mistake, we simply have to take it into account and avoid it at all costs.
Even so, it is true that on some occasions it is worth not maximizing this element. The retirement age, on the other hand, is entirely personal. Each employee who earns a salary must decide when he or she wants to retire. There are some who are forced to retire earlier than they would like for external reasons. But as far as possible, we must bear in mind that requesting a retirement benefit at 62 years of age implies a reduction in each of the checks.
If we do not want this reduction, all we have to do is delay the retirement age. It is common to wait until age 65 to start collecting Social Security, but this does not mean that all seniors have to do so. Another option is to wait to apply for Social Security at age 67, which would mean a Full Retirement Age. Each of these retirement ages has advantages and disadvantages. At what age do you want to apply for your Social Security check?
The most decisive element when applying for Social Security
As everyone has seen by now, the age of retirement is the most decisive element when it comes to the amount of the Social Security check. There are several reasons for this.
- Applying for early retirement means losing up to 30% of the monthly check. A senior who files for Social Security at age 62 has 30 cents less for every dollar of his or her retirement. For example, if he contributes a $1,000 benefit he will only receive a monthly check of $700.
- Early retirement reduces the check. The more years you work, the bigger your check. And not just because of the 30% reduction, but also because more years worked means more money contributed to Social Security.
- More savings. Early retirement means lower savings. More years worked means more years in which to save money.
In short, retirement age is the most decisive and determining key element for claiming a large Social Security check. So we must choose well the moment in which we want to start collecting our retirement.