Additional Coverage:
- 7 Social Security Mistakes Retirees Admit They Deeply Regret (financebuzz.com)
Decoding Social Security: Retirees Share Their Biggest Regrets Before You Claim
Deciding when to start claiming your Social Security benefits is a big financial milestone, and while the earliest you can tap into them is 62, there’s a catch: your payouts will be reduced for life. For those born in 1960 or later, the “full retirement age” is 67, and if you can hold out until 70, you’ll snag the highest possible monthly payment.
But with so many options, how do you know what’s right for you? We’ve gathered some insights from retirees who’ve been there, done that, and shared their biggest Social Security regrets. Their experiences might just help you avoid making the same mistakes.
1. “Should’ve Retired at 62!”
While claiming early means a permanently reduced benefit, a surprising number of Reddit users admit they wish they had retired at 62.
One user, Umanday, reflected, “Retired at 65 because I promised myself I would. I should have done it at 62.
That being said, the only thing keeping me working was the same fear you have. Go for it.
Doing things solely for money can be a dead end.”
Hawkwings had a slightly different approach: “I retired at 62 and started taking Social Security at 66. I lived off of savings for a while, but when my net worth dropped below a certain level, it scared me, so I started taking Social Security. I don’t regret it.”
And AllSoulsNight offered a stark warning: “Knew too many people who didn’t live long enough to get SS. Our tax guy said it all evens out in the long run. Retired at 62 and didn’t look back.”
2. The Unexpected Drawbacks of Missing Work
Full-time employment offers more than just a regular paycheck; it provides a sense of purpose, social interaction, and mental stimulation. User leek54 candidly shared their regret about leaving the workforce:
“I retired at 67, and I regret it. I regret retiring when I did because I miss work.
I think I should have continued to work longer. I miss the challenges and the productivity.
I miss the social aspects of work, and I miss earning money so that I don’t need to use my savings for living expenses, and could spend within reason whatever we wanted.”
3. The Healthcare Head-Scratcher
Healthcare expenses are a significant concern for retirees. With Medicare generally kicking in at 65, those who retire earlier need to meticulously plan for their medical costs.
Reddit user Lirudegurl33 recounted their mother’s difficult experience: “My mom definitely regretted her decision on retiring early. She made incorrect assumptions about what was going to be covered as she grew older. She also didn’t anticipate certain health issues that came out of nowhere and how Medicare is not a stellar health care provider.”
4. When Spousal Support Falls Short
While partners can receive their spouse’s Social Security benefits after they pass, it’s not always a 100% transfer, and circumstances matter.
Physical_Ad5135 shared a cautionary tale about a friend: “[My] friend took [retirement] early, and they made it fine with both hubs and her, but she was in bad shape when he passed away a couple of years after retirement. Someone said you can always go back to work, but don’t count on that.”
5. “I Didn’t Know I Was Going to Live This Long!”
Not everyone finds early retirement to be a blessing. Aromatic-Leopard-600 shared a common sentiment: “I regret taking it at 64. I didn’t know I was going to live this long.”
Other users noted that if your family history shows longevity (parents and grandparents living past 85), waiting as long as possible to claim benefits could be a wiser choice.
6. The Loneliness of Early Retirement
A stress-free retirement sounds idyllic, but if your spouse and friends are still clocking in their 9-to-5s, you might find yourself with a lot of free time and not enough company.
PM_meyourGradyWhite warned: “Almost two years and retired kinda early at 61. Lots of freedom.
Checking things off the near-term list. My problem is my wife still works, as do almost all my friends.
I go fishing alone frequently, which is kinda sad.”
7. The Regret of Returning to Work
The fear of outliving your savings is real. The 2024 Annual Retirement Study by Allianz revealed that nearly two out of three Americans worry about running out of money in retirement. This concern often leads people to retire, claim Social Security, and then, out of fear, return to work.
A former Social Security Administration (SSA) employee, Equivalent_Gain_6033, shared their observations from processing claims: “I processed retirement claims for SSA for 12 years. I think it’s more about how you feel on a set income.
I would tell my claimants to take the monthly benefits x 12 to see the annual amount, and if they liked that number. Most people returned to work, and most regretted it.”
The Bottom Line
Before you submit your Social Security application, take a good, hard look at your retirement readiness. If you claim benefits early and then have a change of heart, there’s a temporary fix: a withdrawal.
The SSA allows you to cancel your application within 12 months, provided you repay all benefits received. You can then reapply later.
For personalized guidance on when to start your benefits, consider consulting a financial planner. They can offer an objective assessment of your finances, discuss estate planning, long-term care, and other crucial retirement considerations.
Smart Money Moves for Everyone
No matter your current financial standing, there are always ways to improve your financial health and boost your wealth. Here’s a quick guide to get you started:
- Boost Your Income: If your budget feels tight, explore avenues to supplement your income. Consider side hustles that fit around a full-time job or legitimate ways to increase your bank account balance.
- Grow Your Wealth: Time and compound interest are powerful allies in wealth building. Start by understanding your current financial position to create an effective action plan.
For those aiming for an early retirement, working with a financial professional can be a smart move.
- Seize Opportunities: Maximize your benefits by taking advantage of all available deals, discounts, and money-saving opportunities.
For example, regularly checking for the best car insurance rates could save you hundreds. Conversely, be vigilant about avoiding financial traps that can silently deplete your savings.
Read More About This Story:
- 7 Social Security Mistakes Retirees Admit They Deeply Regret (financebuzz.com)