Social Security benefits are a mandatory component of every American’s life. Almost 96 percent of Americans are covered under the benefits of Social Security. Every elderly American is eligible to receive Social Security benefits upon the age of retirement. The retirement age in Texas and other states vary according to the birth year.
The retirement age in Texas highly depends upon how long a person has served for the state. An eligible elderly person can start receiving the benefits of Social Security, once they have reached the full retirement age. in the state of Texas; the earliest age to register yourself for Social Security benefits is 62.
It is notable that if a person delays receiving the benefits from the full age of retirement till the age of 70 years; then the benefits will increase. On the other hand, if a person begins receiving the benefits early, then a small percentage from the benefits is deducted each month till the time of the full retirement age.
Most of the Social Security benefits are the taxable amount of the income. Whenever the income amount changes, it is the person’s duty to let the Social Security administration know.
The Social Security benefits for retirees are paid to them through Direct Express Card Program or direct deposition in their respective bank accounts.
Pros of Early Retirement Age
Many Americans plan to retire early, if you are one of them, then know there are pros and cons attached to it. We have enlisted a few:
Healthy Change in Life
Early retirement brings a nice change to the health of an individual. It is always good to sleep late, work at your own pace, no need to be ground in the office for the task deadlines.
Travel as you wish
Travel wherever you feel like. There is no limit to staying at one place because of work. You can travel and take a vacation wherever you want to.
Start a New Career
You can always be your own boss. Start your own business. Work on a desirable job or change the field, which you have been working in. It is always nice to leave the monotony and try newer fields of expertise.
Cons of Early Retirement Age
Bad for Health
Early retirement can lead to mental illness or less mobility. A person who is working; stays active and maintains his/her health to work better. A person also maintains healthier social connections. Once that perspective is gone from life; a person becomes less concerned about health, leading to many adverse effects on health like a stroke or any other disease.
Social Security Benefits Shrink
As the benefits start rolling in earlier than expected, it shrinks the overall benefits of Social Security. For example, if early retirement is taken at the age of 62 then the monthly benefits shrink down to 30% less till the age of 67; which is the full retirement age as per the government.
Retirement Savings must be enough to last longer
Early retirement means you still need to work on some other avenues in order to support yourself. Working longer means a bigger account is there to support you in your retirement years.
Need to find a Substitute for Medical Insurance
Under the Social Security benefits, a person is eligible for Medicare at the 65. Before that, you need to find a way to support yourself in case you get sick or any other health issues.
A common myth is that “expenses decline in retirement”; this is not the case at all. The expenses stay the same; in fact, it gets harder to get accustomed to living on the Social Security benefits for retirement. The monthly stipend, which is deposited in the account under the name of Social Security benefits is sometimes very less to live.