What’s the first thing that comes to your mind when you hear the word retirement? For most people, it’s insecurity and the fear of being dependent.
Many seniors worry about their post-retirement life and whether or not they’ll be able to meet their daily needs. Some seniors start investing early to avoid unforeseen circumstances, while some keep stocking money. But despite knowing about them, the elderly feel puzzled about when to start using their social security benefits.
Well, experts say 62 is the perfect time to reap what you have sowed. It’s neither too early nor too late to start living the life you always dreamed of, without worrying about bills.
Still not convinced? Here are a few reasons that might change your mind.
You are eager to get a new job
Relaxing is like a nightmare for any workaholic who has spent more than half of his life doing a 9 to 5 job. Such people are always on the lookout for responsibilities and never feel like they’ve had enough.
Now you guys can work for someone else, or start something of your own with whatever you get as social security. You can have your own business or be a freelancer, whichever you find suitable, and put the money to good use.
You can sign up for benefits when you please
If you are somebody with thousands of dollars lying idle in your closet, it doesn’t matter when you start using your social security benefits. It will, anyways only represent a small amount of your income.
But, if you have little savings in your IRA or 401(k) plan, it’s good to wait for some time and then file for benefits. That way, you’ll have more cash at hand and will be able to manage your bills in a civilized way.
You are single and have less chance of living longer
If you’re single, surrounded by ailments, and regularly visit doctors, filing for benefits at 62 could be a good option. Though you’ll be getting lower monthly benefits, at least you’ll be able to take care of your needs while you have time.
On the other hand, if you have a spouse, it’s better to leave the account as it’s till you’re alive. That way, your partner will be eligible for a much larger survivor’s benefit and can use that money towards betterment when you’re not around.
Filing for social security benefits completely depends on the needs and lifestyle of the user. If you’re sitting on a multi-million-dollar nest egg, you can do it when you please, but if unpaid bills surround you, probably 62 would be best for you. Ultimately it’s your call that will decide your future.