Many dream of retiring early, but it may not be good for their finances. Here are some reasons why.
Social Security Beneficiary (Photo: planadviser)
Maximizing Benefits for the Average Social Security Beneficiary
According to Portsmouth Press, many Social Security beneficiaries rely on their Social Security income during retirement, making it crucial to maximize its benefits.
To fully maximize the benefits for the Social Security beneficiary, it is not the best option to claim Social Security as early as 62. To understand this, Social Security beneficiary should understand that benefits are calculated based on work history, earnings history, full retirement age, and claiming age.
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Pros and Cons of Early Retirement for Social Security Beneficiary
Investopedia reports that there are mostly cons of early retirement than pros. However, many Social Security beneficiary have no control over their retirement due to job loss, health problems, or family responsibilities.
It is worth thinking over when the social security beneficiary have control over when they should retire.
Some of the pros of early retirement for the social security beneficiary are it is potentially good for your health, gives you more time for travel, and allows you to start a new career. However, there are even more cons of retiring early, such as possible declines in mental health, difficult lifestyle transition, smaller social security benefits, retirement savings having to last longer, and the need to find health insurance.
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