The Social Security Administration or SSA is in charge of retirement benefits in the United States. As you work in jobs covered by SSA, you are paying taxes to the Administration.
These taxes fund today’s retirement benefits. When you retire, other workers will pay taxes in jobs covered by SSA and you will enjoy your monthly payment in the United States. The amount of your future retirement benefits will depend on three things.
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First, the number of years you have worked. If you have not worked for ten years and earned 40 work credits, you cannot file for Social Security at 62. Second, the age you file can reduce or increase your benefit amount. Third, the earnings you get as a worker are key too.
HOW MUCH IS THE RETIREMENT BENEFIT IN THE USA?
The average retirement benefit for workers in the United States is $1,907. However, some retirees may get a lot more while others may qualify for a lot less. See below the maximum amounts.
Retirement benefits could be up to $3,822 if you file at Full Retirement Age. However, you will have to work for 35 years and earn the taxable maximum all that time.
Filing at Full Retirement Age gives you 100% of your payment amount. Nevertheless, you could receive a lot more if you filed at the age of 70. Social Security offers a reward for those who opt for late filing.
Even if you think retirement at 70 is too late, some seniors prefer to carry on working till that age. In this way, they can receive 24% extra. So, your check could be up to $4,873. Getting more money is possible if you delay filing.
WHAT HAPPENS IF I FILE AT 62 IN THE UNITED STATES?
Early filing can reduce the amount of your retirement benefits by 30%. So, if you file at 62, you will get a much smaller check than if you apply for Social Security at 67 or at 70.
It is true that money is not everything. Sometimes, your health is poor and you need to look after yourself. On other occasions, your work is too tough and you cannot carry on doing it.
Let’s compare the amounts at Full Retirement Age, at 62 and at 70. The smallest check is for those filing at 62. It can be up to $2,710. If you file at FRA it could be up to $3,822.
Filing at 70 can give you up to $4,873. As a matter of fact, there is a difference of $2,163 between the maximum amount at 62 and the maximum amount at 70. Even if you get an average payment, you could lose a great deal of money by filing early. It is true you will get more checks.