Working a lifetime typically pays off when people reach retirement age and can enjoy the benefits they’ve accumulated over the years. Maximizing those benefits can help people feel more financially secure in retirement. You can generally start receiving monthly retirement benefits at age 62 if you’ve worked and paid Social Security taxes for 10 years or more. In most cases, you can apply while you’re still working, as explained on the official SSA website.
If you wait until your full retirement age, you’ll receive the full amount
An important step is to wait until you reach full retirement age to apply for benefits. Remember that it’s possible to claim benefits before retirement age, but this means receiving less income since it’s an early retirement. The point is, if you wait until your full retirement age, you’ll receive the full amount. This is important to keep in mind because, depending on each person’s needs or interests, it may be more advantageous to wait until full retirement age or not. For those born in 1960 or later, that age is 67; while those who apply for benefits before that age will receive less money.
For these reasons, you can apply for your monthly retirement benefit through the Social Security Administration website at any time between the ages of 62 and 70. The website allows you to calculate your payment based on your lifetime earnings. The amount you receive will always be higher the longer you wait to apply, up to age 70. In fact, for each year you delay retirement, your monthly benefit will increase by 8%. On the other hand, you should also keep in mind that if you’re getting Medicare Part B (medical insurance), the cost will be deducted from your monthly benefit. Determine when to sign up for Medicare.
If contributions continue until age 70, the percentage of monthly income will continue to increase
However, the SSA website states that if someone has health problems or other concerns that make them hesitate to wait, applying for benefits earlier might be the best option. For example, if contributions continue until age 70, the percentage of monthly income will continue to increase. Ultimately, each person can choose when to apply for retirement based on their individual circumstances. For instance, some people choose to apply early to spread the payments over more years so their family members can apply for family benefits sooner.
Regarding the option of continuing to work until full retirement age, the SSA says: “Before full retirement age (between ages 66 and 67), we will withhold part of your benefit if you work and earn more than the annual limit. When you reach full retirement age, we will increase your monthly amount to make up for the months you did not receive a check. After full retirement age, you can earn any amount without having your benefits withheld.”
If you made a mistake when applying for early retirement, you can revoke it
It’s also important to keep in mind that the type of work you do will affect your retirement income. “Some jobs also follow special rules that may impact how we calculate your benefits,” the SSA specifies, and emphasizes: “We no longer reduce your pension benefits for jobs that didn’t contribute to Social Security.” More and more people are taking up secondary employment as a way to supplement their Social Security benefits, so it’s important to be aware of what the Social Security Administration says about this.
The authorities suggest that each person seek information tailored to their specific situation, as everything can change. Although there are regulations that apply to large groups of the population, the specific circumstances of an individual or family can sometimes alter those circumstances. In fact, if you made a mistake when applying for early retirement, you can revoke your early retirement request within twelve months. This is due to a unique option within the Social Security Administration (SSA).