Thanks to all the knowledge we have about Social Security benefits in the United States, we can deduce the best age to apply for retirement. In this regard, it is true that each person will have a clear preference as to the age at which he or she wants to retire. Therefore, it may be that for a person 62 years of age is the best option.
However, it is true that there are some disadvantages that make 62 a bad age to apply for Social Security retirement. These details are important because they can make a big difference between a good retirement and a bad retirement. Even so, it should also be noted that there are ways to get these negative points to stop being negative.
In any case, we must be clear that applying for retirement at age 62 means that our Social Security years have some negative aspects. Let’s look at those negative aspects to calculate whether it is a good idea or not to apply for Social Security at 62. At what age would you like to start collecting your retirement cheque?
Applying for Social Security at 62 is a bad idea
There are many important reasons that tell us that applying for Social Security at 62 is a bad idea. Let’s look at the main ones:
- The check is significantly smaller. At age 62, the Social Security check becomes 30% less than the money contributed. This implies that if we have a $1,000 check, at the end the amount we will get will be $700. That’s a very big change.
- Less time to save. Working until age 62 gives us less time to save, so we will have less economic margin when we start collecting Social Security. Also, with the cheque being smaller, it’s all disadvantages in the household economy.
- We don’t have Medicare. In addition to the negative parts of the economy above, we have to add the fact that we do not have Medicare until age 65. This means we will have to spend much of our Social Security check on medical services if we need them.
Thus, it is not possible to get a good Social Security check by applying for retirement at age 65. Also, we can get into serious financial trouble if we do so, not just because of the amount we collect each month. However, there are some things we can do to avoid too serious a situation.
Tips for applying for retirement at 62 years of age
If we do not want to have financial problems when we retire at 62, we can take the following actions:
- Look for passive sources of income. We can set up a business that offers us an economic source without the need to continue working. This will be a perfect complement to the Social Security retirement.
- Sell what we do not need. Inside our house we have things that we will never use again. We should check everything we have to sell what we don’t want and get extra money.
- To sublet part of our house. One way to generate income and supplement Social Security is to re-rent parts of our house. The garden or an extra room can make us a lot of money if we rent them out for events.
In addition to all this, it is also important to start saving from the moment we start working. This is the best way to make sure that the Social Security check is not too short every month.