Social Security benefits will be essential in your future retirement in the United States. Even if you are too young because you belong to younger generations like millennials or Generation Z, you need to plan your future as soon as possible, yes asap.
Social Security published a report about the importance of retirement benefits in the USA. In this report, even if they asked different questions in three surveys, they confirm that such benefits provide Americans 65 or older with the biggest part of their income.
Half of these 65-year-old seniors rely on Social Security benefits for at least half of their income. What is more, one-quarter of retirement benefits rely on more than 90 percent of SSA benefits.
What is the earliest age I can start collecting Social Security checks?
According to Social Security, the earliest age you can retire is 62. So far, this is the earliest age, but it is still uncertain if it will remain the same for long. Bear in mind SSA will run out of funds by 2034, so some adjustments will take place.
Q2: When should you start planning for retirement? #FinancialLiteracyChat pic.twitter.com/bG4AK7HG7u
— Social Security (@SocialSecurity) April 15, 2022
Whether it is additional funding, paying more taxes, or delaying retirement some changes might be on their way. Early retirement sounds great and it could be indeed. Especially if you do not rely on Social Security checks to get by. The problem is you have a tight budget when you start retirement.
How much can SSA reduce my check if I file for retirement benefits at 62?
Retirement at the age of 62 means you will get about 30 percent less on your monthly check. This is how it affects your check. It used to be just a 25% reduction, but it has become 30% for those born in 1960 onward. So, things are getting tougher as time goes by. A low Social Security check could be a mistake.
No doubt there are some personal circumstances that make retirement at 62 necessary. If, unfortunately, your life expectancy is not going to be long, you must retire early. Filing for Social Security early and enjoying life must be your number one priority.
Unemployment at the age of 62 could also happen. If you can no longer work in the same job and you cannot find anything else, claim your Social Security benefits.
Keep in mind though that delaying retirement up to 70 can mean getting 11,000 dollars extra in just one year. It is tempting but it also means working 8 more years. Not to mention the fact that you may collect fewer Social Security checks in total.