Early SS
Confused about dryer sheets
If you are middle class, have less than a million in investments, and plan to retire before you are 63, it is necessary for you to start collecting Social Security at age 62. Here is why:
If you retire at age 62 and don't have a regular paycheck anymore, to continue your middle-class lifestyle between ages 62 and 67 (the regular SS age), you should limit your annual withdrawals to 4-5%. Unless you have a million dollars or more, or a pension, you can't live that middle-class lifestyle until your Social Security checks come in.
Here is my real life example:
Assets $600K in my 401k, IRA and taxable accounts total.
I have no other income such as a pension, annuity, real estate or other money making products.
A 4% withdrawal of that is $24K a year or $2000 a month. (Not enough to continue my middle-class lifestyle and pay the bills.)
But if I collected Social Security at age 62, I would get another $1500 a month in income which would give me $3500 a month. Enough for my middle-class lifestyle and pay my bills.
If I stop working at age 62, there is no other option than collecting SS early.
If you retire at age 62 and don't have a regular paycheck anymore, to continue your middle-class lifestyle between ages 62 and 67 (the regular SS age), you should limit your annual withdrawals to 4-5%. Unless you have a million dollars or more, or a pension, you can't live that middle-class lifestyle until your Social Security checks come in.
Here is my real life example:
Assets $600K in my 401k, IRA and taxable accounts total.
I have no other income such as a pension, annuity, real estate or other money making products.
A 4% withdrawal of that is $24K a year or $2000 a month. (Not enough to continue my middle-class lifestyle and pay the bills.)
But if I collected Social Security at age 62, I would get another $1500 a month in income which would give me $3500 a month. Enough for my middle-class lifestyle and pay my bills.
If I stop working at age 62, there is no other option than collecting SS early.
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