Many retirees rely on Social Security as a safety net to live on during retirement. However, Social Security is a complicated program with many quirks that can make it hard to understand. The first thing people who might get benefits need to know is when the best time is to do so. The answer is as different as the people who ask it because each person’s situation must be thought through before a choice is made.
When to claim social Security benefits
Before you start this process of getting rid of things, you should first ask yourself if you will need benefits when you leave. And the third one is why you plan to retire. The second one asks what retirement means to you.
The best thing to do is wait until you get the biggest payment if you plan to count on your benefits when you retire. You will probably want to have at least 35 years of work experience and a high salary because benefits are based on how long you have worked.
Getting ready for retirement may be possible at any time, depending on what it means to you. If you are a paid worker who thinks of retirement as ending all work, you may need more years than you want. But if you have passive income and a part-time consulting job that makes you enough money to get by, your retirement may look different and come sooner.
Having a reason to quit is also important. When you plan to retire because of health issues, switching to a less demanding job or a temporary better-paying job to save money will look different from when you plan to retire because of grandchildren, family responsibilities, not needing to work anymore, or just old age. To make sure a good retirement in each of those situations, you will need to plan and make different choices.
Now that you know all of that, there are three common times when people choose to retire. At any time, they can choose not to work, but that does not mean they will be able to get benefits. A worker must be 62 years old before they can retire and start getting rewards.
To do that, they need to have made enough money from work for at least ten years. This is the least amount of money the government will give someone, but it won’t be enough to live on. If you have worked for the maximum 35 years and made the most money, you will be able to get the most rewards, which is $2,710, when you turn 62 in 2024.
People can start getting benefits again when they turn 65. Most people think of this age as the original retirement age. At this age, Medicare benefits start, which means that health insurance costs go down, and it’s a good time to stop working.
However, the most you can get at this age is $3,426, which is less than ideal. If you want to save even more money, waiting until your full retirement age (which right now is 66 plus a few months depending on your date of birth) can easily add a few extra dollars. At full retirement age, the most you can get from Social Security is $3,822.
Contrary to what most people think, this is not the end of the road; retirees can get an even bigger payment when they reach a certain age. Those who can wait until age 70 to start getting rewards. The highest payment you can get at age 70, which is the oldest age you can be without getting benefits, is $4,873. This is a big increase in payments that people who can wait should get.
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