Social Security offers the possibility to file for retirement benefits at the age of 62. Nevertheless, that does not mean you must apply for these benefits at that age. And if you would like to do so, you’d better know the advantages and disadvantages of doing so.
All the decisions you make throughout your life have positive or negative consequences. Filing for Social Security could be beneficial at 62 if you will not rely on these benefits to get by. Another good reason to file at 62 is when you are in poor health and you need money and time to recover.
As you can see, it will depend on your personal situation and the different circumstances that you are going through. Anyway, you should remember that early filing can be costly. Not many seniors can afford to say no to extra money every month.
How much can I lose if I file for retirement benefits at 62?
According to the Social Security Administration, you can lose 30% of your monthly payments if you file at 62. Therefore, it is of vital importance that you have other earnings, savings, and investments. Or else, you may lose a lot of buying power over time.
Despite the fact that there are COLA adjustments, they may not seem enough or accurate. So, more Social Security beneficiaries feel they can buy fewer things than 20 years ago with their benefits.
Another possibility is to file at Full Retirement Age. The normal retirement age will depend on when you were born. For example, if you are from the year 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. Hence, it is the only way to get what is yours, without reductions but without rewards too.
I will be 70 years old in 2024, is this the best age to retire and get Social Security?
As a matter of fact, your retirement benefits will not grow anymore if you file after the age of 70. That is why 70 will be the best age to retire in 2024 because you will get 24% for late retirement.
Only those who have worked for at least 35 years with earnings equal to the taxable maximum and aged 70 can get 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 the best to file for Social Security, get a statement from SSA online. In this way, you will be able to find out the approximate amounts of your monthly checks at different ages. Using benefits calculators with inflated dollars may also come in handy.
Inflation can drain your savings and monthly payments. Hopefully, you have paid off your mortgage before retirement because interest rates can also affect your income and financial situation. Understanding Social Security can help you decide.
