All United States citizens are entitled to receive their Social Security retirement benefitonce they meet just two requirements. The first is to work 10 years or more. The second of these requirements is to be at least 62 years of age. These requirements are for age-based retirements, as there are other types of Social Security retirements that do not require a minimum age.
Focusing on age-based retirements, there is something we must be very clear about. Social Security checks for age-based pensions depend directly on the number of years contributed. Each year worked significantly increases the final retirement benefit check. Therefore, if we are thinking about retirement in the year 2023, it is possible that we should stop to think and reflect on the situation we are in.
This implies that a good Social Security benefit check involves delaying retirement as long as possible. In this year 2023 the maximum benefit is $4,558 per month for age-based retirees, but that does not imply that everyone can access such a large check. You need a retirement plan well in advance to be able to get that amount.
Delaying retirement in 2023
The reasons for delaying retirement in 2023 are several.
CPI-W has risen sharply in recent months. This means that it is not convenient to stop drawing a salary as a worker and switch to collecting a Social Security check. Retirement benefits are always less than wages as a worker.
Our check could be very small. The Social Security check increases as the years go by. The earlier we apply, the smaller the check will be. For that reason, it is a good idea to apply for it later and not in 2023.
We are not ready. Sometimes it’s not just the Social Security check that’s most important to start retirement. We may not be ready to stop working. It’s a big change in routine and many citizens can’t handle it.
We don’t have enough savings. This is another key issue in retirement. Not having enough savings can be a very negative part of rethinking whether to apply for Social Security in 2023 or not.
In addition to these reasons, everyone has their own individual reasons. Still, if you’re thinking about applying for Social Security now, you may want to review this list to see if you’re really ready.
Why isn’t it good to apply for Social Security’s Early Retirement Age?
If we reach age 62 in 2023, we can start collecting Social Security. This is provided that we have worked a minimum of 10 years. In addition to this, we must also take into account the amount that we will receive with the Early Retirement Age.
Looking at the 2023 retirement table we can see that monthly pension checks see a 30% reduction with Early Retirement Age. That means that $1,000 checks go to $700. That’s a noticeable difference. For that reason it is best to wait until age 67 before applying for Social Security.