Can Early Retirement Affect My Social Security Payments?

Some may retire early due to health issues or a condition that has prevented them from performing daily tasks at work. If this is the case, you can file for Social Security Disability benefits. This has no effect on your retirement benefits from the company you work for. If your health issues contribute to early retirement, you have a high chance of qualifying for disability benefits, though early retirement can affect your monthly Social Security payments.

How can collecting retirement early affect my payments?

If you want to start collecting retirement benefits early, your monthly payment will be reduced depending on how early you are claiming. You benefits will be reduced based on the age of your retirement and the age you are claiming your retirement. Your monthly payment can be reduced anywhere from 20 to 30 percent less than you’ll receive at the full retirement age.

Should I Wait To Receive Full Retirement Benefits?

There is no normal time to receive retirement. Sometimes claiming your retirement can be inevitable, depending on your situation. Waiting until you reach full retirement age will be avoiding a reduction in your monthly benefits, as well as, if you delayed retirement, you can increase your monthly benefits. What should be noted is that once you reach 70, your benefits will no longer increase. If you delay your retirement prior to that, you can increase your monthly benefit by roughly six percent each year you delay. If you do delay your retirement, you should still sign up for Medicare once you turn 65. According to SS, if you don’t sign up then, you will be increasing your costs.

Based on the information provided above, taking an early retirement can reduce your monthly Social Security payment. If you are going to be relying on your retirement, the best option is to try and wait until your full retirement age. If you do have a medical issue that can pass as disability, have a disability attorney help you with your paperwork prior to filing. If you are unsure and what financial decisions to make regarding retirement, consult with someone so that can guide you in the right direction.

Comments

Post a Comment

Popular posts from this blog

What Income Reduces Social Security Benefits

Image
Social Security is a government run organization that benefits millions of Americans. It helps citizens financially by easing the difficulties of their disabilities that impede their ability to earn sufficient wages. However, with such a large system, it can be tricky to be entirely and accurately informed on how it operates. In addition, your disability case may be unique, resulting in exceptions to the set general guidelines. So if you’re thinking about applying for Social Security Disability Insurance because of a mental or physical impairment , you should be as informed as possible. In that case, there are a few pieces of information that you should know. When it comes to receiving disability benefits, a multitude of factors contribute to your earnings. In addition, you may be unaware, but your disability benefits can actually get reduced depending on your income; this term is known as social security income limits. This is especially important for those who rely heavily on
Read more