Millions of citizens depend each month on Social Security deposits. For many, this income represents the foundation with which they can keep their household, pay bills, and cover essential services. However, not all beneficiaries receive the same amount, since it depends on the age at which they decide to apply.
The system allows people to choose between a minimum and maximum age to activate the payment. Each person has the freedom to choose, but doing so too early has significant financial consequences. The reduction can be much greater than what someone who decides to apply at age 62 might imagine.
Who can receive Social Security benefits?
The program is designed for different groups of people. First, it includes retirees who have worked for years and have contributed to Social Security taxes. These workers receive financial support after finishing their working stage.
Those who have a disability that prevents them from continuing to work are also among the beneficiaries. The system considers their situation and grants them monthly financial support to ensure stability. In addition, coverage extends to family members of retirees, disabled individuals, or even deceased people, always under certain requirements.
Payment dates are organized with a specific calendar to keep order in the deposits. Those born from the 1st to the 10th of the month receive payment on the second Wednesday, those whose birthday falls between the 11th and 20th receive it on the third Wednesday. Finally, those born between the 21st and 31st have their deposit on the fourth Wednesday of the month.
How much money is lost by applying at age 62?
The major dilemma arises when a citizen decides to apply for the benefit at the minimum permitted age. At age 62, it is possible to do so, but with a significant reduction in the final amount. The reduction can reach up to 70% of the total value of the benefit that would apply if it were requested at the maximum age.
This means that, for life, the monthly amount will be limited. This is not a temporary discount, but a permanent reduction in the pension. Making the early decision can be useful for those who need the money as soon as possible, but it also means giving up a higher income in the future.
That's why the usual recommendation is to wait and request payments at the latest possible stage. The later it is requested, the larger the monthly deposit the beneficiary receives will be. This difference can shape the budget of an entire family for years, especially in a changing economy.