Receive 25% less pension at age 62, and you will lose more if you are married

You will receive 25% less pension, and you will lose more if you are married, at 62. As many as 75 million post-war baby boomers have gradually entered the legal door to receive Social Security pensions at the age of 62...

Receive 25% less pension at 62, and you will lose more if you are married. As many as 75 million post-war baby boomers have reached the legal threshold of 62 years old to receive Social Security pensions. Investment and financial management experts suggest that it is best to work until the age of 70 before retiring in order to receive the maximum social security pension. If you are short of money before, you can withdraw your 401(k) retirement account savings, which is better than taking Social Security benefits early. The financial website Kiplinger.com recently launched a guide on how to receive the maximum pension, and does not recommend that individuals apply for Social Security pensions at the age of 62. Because it will result in Social Security benefits that are 25% less than the retirement age, married people may suffer more losses. For those who retire after the age of 70, their pension will increase by 8% for every year they retire, plus the cost of living index will increase. For example, if a 62-year-old man retires now, he can receive a monthly Social Security pension of $1,125. But if he retires at the age of 70, he will receive a monthly Social Security pension of 1,980 yuan, a monthly difference of as much as 855 yuan for eight years. Social Security benefits are calculated based on the highest 35 years of income before retirement. If there is no income in a certain year, it will be calculated as zero for that year and then divided by 35. Delaying claims for Social Security benefits is most beneficial to married couples. The lower-income spouse can apply for it when he or she reaches the age of 62. If the higher-income spouse also starts receiving social security pensions, the lower-income spouse can also choose to apply for 50% of the other half's social security pension when he reaches 66 years old. However, if the spouse with the lower income receives the spouse’s Social Security benefits before reaching the age of 66, the spouse’s Social Security benefits will be reduced. If the person with the lower income first takes his or her own Social Security benefit and later changes his or her spouse's Social Security benefit, the spouse's Social Security benefit will also be reduced. If the person concerned has a pension account, he should delay receiving his Social Security pension. Because the money in the retirement account does not increase with inflation and can be accessed at the age of 59 and a half, there is no need to rush to collect the Social Security pension at the age of 62. Furthermore, Social Security pension benefits have the benefit of fighting inflation because they will increase year by year with inflation. If your income will rise sharply in the last few years of your working life, you should delay applying for social security benefits. Because Social Security benefits are calculated based on the average of the highest 35 years of income, that also means that Social Security benefits will increase in delayed retirement. If you are still working after applying for Social Security benefits, most experts do not recommend applying for Social Security retirement benefits early. Because the Social Security Administration will withhold part of your salary as social security benefits, it becomes a deduction. Under the 2011 regulations, retired people who are still working and whose annual income exceeds the upper limit of $14,160 will lose one dollar for every two dollars they earn. For example, if the annual income is 30,000 yuan and the social security benefit for retirement at the age of 62 is 1,500 yuan per month, because the annual income of 30,000 yuan exceeds the upper limit of 15,840 yuan, the social security benefit will be deducted by 7,920 yuan, and the social security benefits of the spouse and widow will also be deducted by 7,920 yuan. If you receive Social Security benefits after reaching retirement age, and your annual income exceeds $37,680 before the month of your birthday that year, you will lose one dollar for every three dollars you earn. There will be no further deductions from the birthday month onwards. If you start receiving Social Security benefits and unexpectedly return to work, you should let the Social Security Administration know as soon as possible. Once the personal income tax form shows that the person has income, the social security benefit will be reduced. At that time, the overpaid social security benefit must be repaid in one go, or the social security benefit may be deducted in the future. The Social Security pension that has been deducted due to work will not disappear forever. The Social Security Administration will repay it to you when you reach retirement age. However, if you apply for Social Security benefits at age 62, the lost normal Social Security benefits will never be replaced. This is another reason why experts and the Social Security Administration do not encourage claiming Social Security benefits early. If you reach retirement age and start receiving Social Security benefits and then return to work, you can suspend receiving Social Security benefits. For example, if you originally planned to apply for a pension at the age of 70, but you were laid off before reaching retirement age and began to receive Social Security benefits, you can suspend receiving Social Security benefits when you reach retirement age and find a job. When you apply again at age 70, Social Security benefits will increase by 8% year by year based on the original reduced benefits.