Retiring at 65 or 62 – which is better?
Filed under: Uncategorized | Tags: florida attorney, retirement, social security laws |
There are really no clear cut answers when it comes to retiring at the age of 65 or 62. The answers may depend largely on a person’s financial situation. Although receiving a larger check when we choose to retire at 65 is an obvious reason for some to extend working for a couple of more years the lure of retiring early and receiving a monthly check could be a better alternative for some.
It is always a good move to get all the facts before making any type of decision. Talking to a Social Security representative or a quick glance into the Web site could provide you with facts that could help you make a better decision.
Changes in Retirement
The program has undergone many changes and your benefits maybe different from the next person. Workers’ who were born in the years of 1943 to 1954 for example who retires at 62 only receives 75 percent of what a person who retires at 66. For those who opt to retire at age 67, benefits are increased to 108 percent of monthly checks. However, workers who delay their retirements at 70 receive 132 percent, the maximum increase for delaying retirement.
Average Life Expectancy
The simple fact remains that your Social Security benefits depend on the total amount and years of payment. The average life expectancy for Americans stands at 77.7 years, this rises to 83 years for people who reach the age of 65. This makes Social Security very important in helping elderly Americans leave fuller lives.
Maximizing Your Benefits
The most important thing to consider is maximizing your benefits by planning your contributions accordingly. For those considering early retirement, this certainly mean smaller monthly checks for the remainder of their years. Another thing to remember is that smaller contributions also mean lower benefits for surviving family members.
Even with higher life expectancy levels, nobody could be truly sure how long anyone could live. The best thing to do is to make a retirement plan and increase your monthly contributions. This gives you the flexibility of deciding whether you wish to opt for retiring early or going the full mile before retiring. A higher monthly payment ensures that you and your family have better benefits as opposed to just paying the minimum requirements for contribution.
Having a bigger check still comes on top any which way you look at it. But for those who may need the money and find themselves without a job before reaching 65, the Social Security program could provide you a vital lifeline and help individuals get thru troubled times.
Additional Information Link: Public Attorney Mike Murburg, with offices located in the Florida State area.
