Is a Partial Retirement the Key to Postponing Social Security?

You’ll often hear that deferring your Social Security application is a good idea.

What is the explanation for this? Once you reach full retirement age or FRA, you are entitled to your entire monthly payment based on your particular earnings history.

Depending on your birth year, you’ll be 66, 67, or anywhere in between. However, if you wait until after FRA to file for Social Security, your benefits will increase by 8%. That boost will then last for the duration of your retirement.

Once you reach the age of 70, you will no longer be able to accumulate the credits that result in increased benefits. This means that if your FRA is 67 and you want to receive the maximum Social Security income, you’ll have to wait three years.

However, doing so isn’t always straightforward. Many folks reach their late 60s and can no longer imagine working full-time.

While the concept of working full-time until you’re 70 may not appeal to you, it’s worth considering a partial retirement in which you work part-time.

This could be your ticket to deferring Social Security and securing a bigger monthly income, allowing you to live more comfortably in your golden years.

The upside of partial retirement

Not every job or vocation is suited to part-time work. However, many fields do. And if yours is one of them, it’s a good idea to think about switching from a full-time to a part-time job whenever FRA arrives.

Postponing Social Security?

This may allow you to postpone filing for Social Security while still earning enough money to pay your bills without having to dip into your savings.

However, partial retirement has other advantages. You’ll get a taste of retirement by gradually transitioning to part-time work. You’ll get a taste of what it’s like to live on a lower income and how easy (or difficult) it is (or isn’t) to fill your days when you aren’t working.

Remember that working is a low-cost way to pass the time. You may spend more money on entertainment if you spend less time working. That’s a wake-up call you might benefit from while you’re still employed.

Indeed, one of the main reasons it pays to increase your Social Security income is that you’ll want to keep yourself engaged while you’re no longer working.

It’s like having the best of both worlds

More Updates:

If you want to get the most money out of Social Security but can’t see yourself working 40 hours a week until you’re 70, partial retirement could be a smart option.

And who knows what might happen? If that arrangement works out well, you might opt to keep it even after you’ve turned 70 and started getting Social Security benefits on a monthly basis.

Many seniors discover that part-time work provides them with the best of both worlds: the opportunity to be busy while also increasing their income without having to commit to a full-time career. And it’s something to think about for your retirement as well.

Most retirees overlook the $18,984 Social Security bonus

If you’re like most Americans, you’re behind on your retirement savings by a few years (or more). However, a few little-known “Social Security secrets” may be able to help you increase your retirement income.

For instance, one simple method may get you an extra $18,984 every year! We believe that once you understand how to optimize your Social Security benefits, you will be able to retire with confidence and the peace of mind that we all seek.

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