2. How to Live on Social Security Alone: Avoid Taking Social Security Before Your Full Retirement Age
Your age when you start claiming Social Security benefits plays an important role in the amount you’ll receive. So, in order to figure out how to live on Social Security alone, it’s important to keep one thing in mind.
If you sign up for payments before your full retirement age, which is 66 for those born between 1946 and 1964, your payments will be reduced. If your full retirement age is 66 and you claim Social Security at age 62, you get 25% smaller monthly payments.
A worker who qualifies for $1,000 per month at age 66 will receive $750 monthly if they choose to begin payments at age 62. This is a significant drop that will likely impact you in your golden years.
“If you think you’re going to die young and you really need the money, there are people who decide to draw money early,” points out Timothy Hayes, a certified financial planner. He also encourages people to at least wait until they reach full retirement age because if they collect benefits before that, they are going to receive a permanently reduced payment for the rest of their lives.
