All workers in the United States can apply for Social Security retirement. There are several ways to apply for retirement, although two are the most popular. The first is to apply for Early Retirement Age (ERA), which can be applied for at age 62. The other option is to wait until age 67 to apply for Full Retirement Age (FRA). Each has its advantages and disadvantages. The main disadvantage of the ERA is that Social Security pays less money each month. For that reason, many people don’t want to accept early retirement.
If you find yourself needing to retire early, you may need to consider these tips. The reasons you may need early retirement from Social Security can be varied. For example, you may have become unemployed at age 62. You may need a break or you have health problems for your current job. No matter the reasons, what matters is that you have an obligation to retire early.
Don’t apply for Social Security too early
You are the person who must apply for Social Security. That is, no one can force you to apply for retirement, so it is entirely up to you. If you don’t see fit to apply for Social Security, don’t do it now. The problem is the bills and the money needed for day-to-day living, but you can think of some other source of income to get it.
If you do not retire until age 67, you will enjoy an enhanced Social Security benefit. If you retire earlier, your benefit will be reduced by about 20%. Therefore, don’t apply for your benefit yet and think about some other money-making alternative to pay all your bills.
Tips for delaying your retirement
That said, you may not apply for your Social Security retirement and look for some kind of income in the meantime. This income can come from different places, so you can choose the most interesting option for you.
- Work part-time: You may have lost your job or due to health reasons you may have to resign from your position, but that does not mean the end of your working time. You can apply for a part-time position to help you pay your bills. This part-time job can be in a different sector in the same.
- Save on your day-to-day living: If you want to reach age 67 without claiming ERA, you may need to cut back on expenses. To do this, consider all types of expenses you incur. Try not to spend too much on gas, buy food you don’t need, or subscribe to streaming platforms, among other things. This way, you can extend your savings to live peacefully until the Social Security FRA.
- Rent a room in your house: Another option to gain financial independence is to rent a room in your house. This depends on the size of your home, of course. If you have an extra room, you can earn a monthly income to help you wait until the FRA without problems. Plus, you’ll be able to socialize more with the new tenant.