In the United States, retirement is one of the most awaited moments for all those who have been working for years. The long-awaited moment when the Social Security Administration (SSA) takes over monthly income payments, corresponding to what has been worked throughout life. This procedure can be applied for from the age of 62, having fulfilled a series of requirements, but it is not the only possible age. It is important to know that the different retirement ages are 62, 66-67 or 70. The longer it takes to retire, the greater the increase in benefits to be received by the beneficiaries. Respectively, it would correspond to 70%, 100% and 132%.
Social Security Administration
Founded in 1935 by Franklin D. Roosevelt, it is the government agency in charge of managing social benefits. These include monthly payments to retirees, survivors, the disabled and social assistance to families and workers. These are different social benefits depending on the needs of the user. In the case of the elderly, people with limited income or blind people, they can benefit from social programs such as the Supplemental Security Income Program (SSI) or the Supplemental Nutrition Assistance Program (SNAP).
Retirement
Is it time for you to retire? Do you still have a long way to go before you can enjoy it? Retirement is the process through which a person ends his or her working life, and reaches a certain age, ceases his or her activity. He/she continues to receive income through monthly payments from the Social Security. The amount of these payments will depend on the contributions that have been made throughout the working life, as well as the retirement age and personal aspects of the individual.
When should I retire?
There are different retirement ages. Each one responds to a series of needs and characteristics that have to do with the user. Northwestern Mutual experts recommend taking into account factors such as health and family needs.
They recommend analyzing the characteristics of each case and deciding between:
Retirement at age 62:
- If you have health problems.
- If you are unable to continue working.
- If the spouse has a higher income.
- If you do not have savings to cover immediate expenses.
Retirement at age 66-67:
- You have already exceeded the minimum retirement age.
- For each additional year worked, the amount of earnings is increased.
- Earnings limits do not apply.
Retirement at age 70:
- The highest monthly payment is received.
- Increase of the amount to be received in case of death of the spouse.
- Good option for those who are healthy and want to remain active in the labor market and generate their own income.
Economic benefits of retirement
The benefits received in retirement depend mainly on the age at which the citizen retires. According to the Social Security, the average age is between 66 and 67 (which varies according to the year of birth). Depending on age, the following percentages of benefits may be received:
- Age 62: only 70%-75% is received.
- Age 66-67: benefit of 100% of the total.
- Age 70: for each additional year can be increased up to 8%, reaching 132% of benefits.
Choose and customize your retirement
There are many who believe they have the perfect recipe for an ideal retirement. The best time, the best plans and the best organization. However, the reality is very different. The different ages proposed by the Social Security administration allow citizens to adapt the timing of their retirement to their needs. The personal, work and economic context of each person is what determines the choice. Each citizen will present his or her list of priorities and, based on this list, will make the decision.
There is no perfect age, moment or amount for retirement. It will always depend on the individual. Whatever decision you make, it will be the right one.