The Social Security Administration’s retirement benefit payments are not for all Americans. This is because you must have earned enough work credits before you can claim them.
In fact, you need to have at least 40 work credits at 62. That is about 10 years of work. Even if it is enough, it may not provide you with a decent payment, so working for at least 35 years is advisable.
Which workers can get a 30% cut when they file for Social Security?
If you file at the age of 62, you will get a reduction of about 30%. This is because you must wait until you reach Full Retirement Age before you can claim 100 percent of your retirement benefit.
So, if you do not want to get a cut of about 30%, you’d better delay filing for Social Security. What is more, you could get less money if you have not worked for a minimum of 35 years.
Social Security uses the top earnings in 35 years of your work history. If you have just worked for 34, 1 year of earnings will count as $0. On the contrary, filing at 70 can give you 24% extra per month.
How Social Security amounts may vary at 62 and 70
If you file for retirement benefits at 62 and qualify for $1,465, you could have received $2,634 if you had filed at the age of 70. Therefore, your Social Security check could have been 1,169 dollars higher.
Some people may not want to delay retirement so much. Instead, they prefer to do so at Full Retirement Age. If you reach Full Retirement Age at 67, your benefit would have been $2,119.
Needless to say, you should file when suits you best. Some workers do not need Social Security to make ends meet, so they can simply file at 62. Being ill may also prevent you from filing late. Anyway, reflect on it and calculate the money you need for hidden expenses and inflation.