Social security offers the opportunity to apply for retirement benefits at age 62. However, this does not mean that you should apply for these benefits at this age. And if you want to do it, you better know the pros and cons of it.
All the decisions you make in your life have positive or negative consequences. Filing for Social security can be beneficial at age 62 if you won’t be relying on these benefits to get by. Another good reason to file on 62 is when you are in poor health and in need money and recovery time.
As you can see, this will depend on your personal situation and the different circumstances you are going through. However, you should remember that filing early can be expensive. Not many elderly can afford to say no to extra money monthly.
How much could I lose if I apply for retirement benefits at 62?
According to Social Security Administrationyou can lose 30% of your monthly payments if you file at 62. Therefore, it is vital to have other income, savings and investments. Otherwise, you may lose a lot of purchasing power over time.
Despite the fact that there are COLA adjustments, they may not seem sufficient or accurate. So, more Social security beneficiaries feel they can buy fewer things than 20 years ago with their benefits.
Another option is to file at full retirement age. The normal retirement age will depend on when you were born. For example, if you are from 1960 or later, your full retirement age is 67.
Social security will only pay 100% of your retirement benefits if you file at full retirement age. Therefore, this is the only way to get what is yours, without discounts, but also without rewards.
I will be 70 in 2024. Is this the best age for retirement and Social Security?
In truth, your pension benefits won’t grow any more if you file after age 70. That’s why 70 will be the best age to retire in 2024 because you’ll get 24% for late retirement.
Only those who have worked at least 35 years with earnings equal to the taxable maximum and turn 70 can receive up to $4,873 in 2024. Very few retirees can enjoy such larger payments, but they are possible .
If you are not sure if your age is best to submit Social security, get an SSA statement online. That way, you’ll be able to figure out the approximate amounts of your monthly checks at different ages. Using inflated dollar benefit calculators can also be helpful.
Inflation can drain your savings and monthly payments. Hopefully you’ve paid off your mortgage before you retire, because interest rates can also affect your income and financial situation. understanding Social security can help you decide.