As you are looking ahead toward the future you have to make some decisions regarding your projected retirement date. Understanding exactly when you will become eligible to receive Social Security is generally going to be part of this equation.
This is a little more complicated than it may seem on the surface. It should be noted that these figures are always subject to change, but right now you can start to collect Social Security when you are as young as 62. But, you would be receiving a reduced benefit.
The age of full Social Security eligibility varies depending on the exact year of your birth. If you’re not currently receiving Social Security benefits your age of eligibility is either 66, 67, or somewhere in between.
The options don’t stop there. You can alternately choose to delay your application beyond your age of full eligibility. If you go this route your benefit will be greater than it would be if you started receiving a benefit as soon as you were eligible for the full amount.
Many people choose to work after they reach the typical retirement age, and some do this because they like the work. Others are forced to continue working even when they would prefer not to for financial reasons.
Staying active can be healthy on more than one level if this is your choice. But the word “choice” is key. You don’t want be working when you are in your late 60s, 70s, and perhaps beyond because you have no choice.
Those who stick to a sound retirement plan over a number of years are generally going to be able to work on their own terms if they choose to do so. People who live in the moment spending every penny they earn along the way may have few options late in their lives.