The turning point of starting to collect a Social Security check is a turning point in any United States citizen’s life. Losing some purchasing power due to no longer collecting wages as a worker is a very important step. That is why it is good to know all the details surrounding Social Security and all the options available.
Within the retirement age, we should know that the minimum is 62 years old. Until we reach that age we cannot apply for a Social Security check. This changes slightly in the case of disability users. But in the area of age-based retirement, that is the minimum age.
Knowing this, it is tempting to reach age 62 and decide to collect a retirement check. But watch out, because starting to collect Social Security at Early Retirement Age can be a financial disaster in more than one household. It is true that all of these situations are always personal, so each individual can decide what is best in his or her individual case.
Why is it not a good idea to apply for Early Retirement Age?
The main reason for not applying for Early Retirement Age is the amount we will receive in our Social Security check. With the minimum retirement age we are going to see our pension check go down 30%. This means that even if we try to get the maximum check, we will never be able to reach it.
In short, applying for Early Retirement Age causes the Social Security check to drop by 30% of the money we have contributed as a worker. So if we got a check for $2,500 a month, we will end up getting $1,750 a month. So the main reason why we should not think about the Early Retirement Age is economic, but it is true that the difference is very big.
In this example case we can see that our check sees a reduction of $750. It is a lot of money, so we must plan our retirement well if we do not want economic problems in the future.
The best age to apply for Social Security
While it is true that 62 may not be the best age to apply for Social Security, it all depends on each individual’s situation. Each year after 62 reduces the percentage subtracted from our Social Security check a little.
To get a check for 100% of the money we have contributed, we will need to apply for retirement at age 67. In addition to this, we must also remember that from 65 we have access to Medicare, so we will also save in the area of health.