One of the main objectives of any citizen in the United States is to have a good retirement age. To achieve this, it is necessary to work both in the area of the Social Security cheque and the rest of the economic factors that influence our day to day life. It is not that it is an easy job, but it is worth it in the end, since thanks to all this effort we will be able to get a better rest.
Within the Social Security retirement system we find that there are a minimum of requirements before applying for a pension check. One of these requirements is to be 62 years old. This age is known as Early Retirement Age. It is the minimum age for most seniors in 2023. Applying for the Early Retirement Age involves a series of advantages and disadvantages.
Among the major disadvantages we find that we will receive less money in our monthly cheque. The discount with respect to the Full Retirement Age is 30% less. Therefore, if we apply for the Early Retirement Age we can see that our check contributed during the working years will have 30% less monthly. This means that if we have a check of $1,000 at the end we will receive only $700.
What are the ideal conditions to apply for the Early Retirement Age?
This question is very difficult to answer because in most cases the answer depends on each individual person. Having the best possible retirement by collecting Early Retirement Age Social Security can be achieved. To do so, we must take into account these conditions:
Have no mortgage or credit. If we do not have any type of debt, we can consider applying for Early Retirement Age.
Have sufficient savings. With a lot of money saved, it is possible that we can apply for Early Retirement Age without sinking in the attempt.
Maximize the Social Security check. If we get 30% less than the money we contribute, we will need to maximize that figure. To do that, the age factor cannot be changed, so we must maximize the other two elements. It is mandatory in that case to have the largest possible check during the working age. Likewise, we must work a minimum of 35 years if we are looking for a good Social Security.
Look for an alternative source of income. There are situations in which a Social Security check is not enough when we have the Early Retirement Age. So we need to look for an alternative source of income. We can make investments, sell things we don’t need, or even look for a part-time job.
If we meet these 4 conditions, it is very possible that we can finally apply for Early Retirement Age and be able to live well just by collecting a Social Security check, although everything will always depend on each individual situation.