The United States Social Security pension system makes the general rules very clear. to be able to receive a monthly age retirement check. Therefore, from these rules we can decide when is the most convenient time for us.
While it is true that not only retirement age determines the amount of monthly Social Security dollars, it is a very influential element. On the other hand, we must also keep in mind that retiring earlier or later may not be under our control. There are many variables beyond our control that can determine retirement age.
However, there is something undeniable about Social Security. Retiring at age 70 is the best idea because of an advantage it gives us as workers. This advantage is impossible to achieve if we apply for retirement before age 70, so we should keep it in mind all the time.
Advantage of applying for Social Security at 70 years of age
The main advantage of retiring at age 70 is the monthly amount of the cheque. The maximum of $4,558 in 2023 can only be achieved in this way. This means, therefore, that we cannot reach that maximum check if we do not retire at that age. Social Security will not reach such high figures by applying for retirement earlier.
In this sense, applying for retirement at age 62, the minimum age, means losing 30% of monthly benefits. This makes a big difference, as a $1,000 check would become $700. On the other hand, retiring at age 67 means getting 100% of that check from Social Security.
So, going beyond that age would mean a noticeable increase in the check. If we manage to maximize all the other aspects, besides age, we could reach that $4,558 a month, a significant figure.
However, it is not only necessary to reach the age of 70 to reach that figure. Other aspects are necessary, as we have already mentioned. To do so, we must also increase these two elements:
- Years worked. It is necessary to work for at least 35 years to get the maximum check from Social Security.
- High salary. With a high salary, our retirement check will be higher. Ultimately, SSA checks depend on the taxes we pay as workers.
In short, reaching age 70 has the advantage that we will have a much larger check than if we retire earlier. Of course, it may be that a citizen may need to apply for Social Security retirement earlier for various reasons. In that case, we should maximize the other two aspects in order to have a good benefit in the future.