The Social Security Administration‘s benefit system ensures that people in the United States have a check in their bank account every month. However, the amount of each of these checks is different, as it depends on certain personal decisions. In addition to that, the money that the Social Security Administration sends us every month also depends on our work history.
And in one of those elements we could lose a big part of our Social Security check. Depending on various choices, we may find ourselves losing up to 30% of the final amount. So part of what we have worked for may not reach our pocket. That is why it is so important to know the rules of retirement checks well and thus avoid unpleasant surprises.
However, it is possible to get a good check even if you lose about 30% of the amount you have contributed. In the end, it is all about balancing the scales and achieving a good result within our means. Of course, reaching $4,555 per month may be impossible if we lose this monthly percentage of our Social Security.
Why can we lose part of our Social Security?
When it comes to applying for a Social Security check, we have several requirements. There are two requirements in total. The first is to have worked a minimum of 10 years. The other requirement is to reach 62 years of age.
However, applying for retirement at age 62 is what causes us to have a very small check in the future. This is because the so-called Early Retirement Age subtracts part of our benefit. The limit that Social Security can subtract from our monthly check is 30%. And this is the percentage we lose if we apply for Early Retirement Age.
As the years go by, we will lose less percentage of the money we have contributed. This means that the closer we get to age 67, the better benefit we will get. At age 67 we will get 100% of the retirement check we have contributed. And it is not necessary to continue working from age 62 until 67.
In short, if you don’t want to lose part of your monthly check, you should think very carefully about when you want to apply for a Social Security check. To this we also have to add that we must maximize the check. So working a minimum of 35 years and getting a good salary should be our priority objectives.