Numerous factors, including your age and earnings record, can have an impact on the total amount of Social Security benefits you receive.
The number of years worked and the age of retirement are among the most significant factors. In general, the longer one works, the greater one’s potential earnings. The amount you earned on average over a span of 35 years is another major factor.
Eligibility for Social Security Benefits
To qualify for Social Security benefits, you must typically be at least 62 years old. You must also have worked for at least ten years and paid Social Security taxes during that time. The good news is that the majority of employers will deduct these taxes automatically from your regular paycheck so that you can receive retirement benefits.
The number of earned credits is another factor that can impact eligibility for benefits. President of The Retirement Genius, Chris Orestis, explains that eligibility for retirement benefits is based on ‘credits’ earned for each year of employment.
Since only 40 credits and 10 years of work are required, you could theoretically begin receiving Social Security benefits at age 62 if you have met the requirements. Orestis remarked This would only provide the smallest possible benefit.
A person could begin receiving Social Security benefits after 10 years and at the age of 62, but it would be significantly less than if they had earned the maximum number of credits at 35 years and waited until age 70.
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Advantages of Early Retirement
Some participants cannot or choose not to work for 35 years before beginning Social Security benefits. There are some benefits to working less than 35 years. For instance, early retirement could provide more time for hobbies and other interests or activities. It could also provide you with a wider range of career options.
However, there are also numerous disadvantages. As previously stated, if you have less than 35 years of work experience, your Social Security benefit may be reduced. A person’s financial security and ability to save for retirement may be affected by lower lifetime earnings due to working fewer years.
Before deciding to stop working early, you should, if possible, consider your circumstances, financial situation, and goals. It may be advantageous to work longer than 35 years, as this could increase your earning potential.
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