The first thing you need to take into account is the age you would like or can afford to file for retirement. In fact, if you asked, most American workers would say they would love to file at 62.
Although the Social Security Administration allows workers to file at 62, early filing means getting 30% less per month. The average payment for retirees at 62 is less than $1,300. So, if you think that is enough because you do not rely on these benefits, go ahead and file at 62.
PLAN A MONTHLY BUDGET BEFORE RETIREMENT
Since you may earn less money as a retiree than as a worker, it is important that you stick to a monthly budget before you file for retirement benefits. Bad spending habits can result in not having enough money to pay bills, buy food, or afford medical expenses.
Delaying filing for benefits until you are 70 can have many advantages if you are healthy and able to continue working. Social Security can give you 24% extra per month if you file at 70.
What is more, late retirement will allow you to have more time to continue making contributions and investing more money. The bigger your nest egg is, the better. So, basically, you will have more time to save more money. Beside, you will not spend your savings so early.
MAKE RETIREMENT SAVINGS AUTOMATICALLY
If you ask for help from your bank manager, they can help you automate your savings. In this way, you will not see that money when you check your bank balance and you will not forget to save it or spend it.
Give priority to your retirement savings. Some people neglect their savings for the future because they see there is still time for that. Time flies and you should start saving as soon as possible.
The last tip to keep in mind before you file for retirement benefits is to get rid of any debt or loan you may have. The fewer expenses you have in retirement the better.