Early Retirement: Understand the Benefit Reduction & Preparedness Tips

Law Blog

You are planning to retire early, but there are a few things you should do to be prepared. You could talk to your social security attorney regarding what you can expect regarding your benefits. The following guide will enlighten you on what you can expect and how to better prepare for early retirement. 

Understand the Reduction

The first thing that you should be aware of is how the reduction works regarding your benefits. The normal retirement age is 66 years old, but you can retire as early as 62 years old. But your benefits will be reduced 5/9 of 1 percent for every month before retirement age, and this reduction will be permanent. The reduction and retirement age just mentioned only affects those who were born between 1943 and 1954. Do not forget that your benefits increase if you retire passed the retirement age all the way up to 70 years. Remember that the amount you get can be affected by some of the following as well:

  • Personal pension
  • Child support
  • You were born outside of the years mentioned above (talk to your lawyer about how your birth year affects you)

There may be other things that may affect your benefits, so do your best to be as open as you can with your social security attorney.

One important thing to remember is that you may be entitled to your entire social security benefit if you are retiring because you are disabled. But, in this instance, you will need to apply for disability rather than the request to retire early. Talk to your social security attorney to ensure you are applying for the right thing.

Tips That May Help You Prepare

Consider the following tips to help manage your money, as it will be significantly less and you need to be prepared for that:

  • Think about a reverse mortgage or another form of housing that will be lighter on your pocket. Your lawyer may have some tips regarding housing available to you as a senior. 
  • Attempt to live below your means, so think about letting go of time shares or extra vehicles.
  • Do your best to stay away from credit cards because interest rates add up.

As you can see, there is a lot to think about regarding your early retirement, but your social security attorney and this guide might help you get started on this next step in your life. 


28 November 2015

Legal Issues in Flipping Property

People with an eye for property can make a great deal of money buying a house, fixing it up and then selling it for a profit. However, there are many legal issues involved in this kind of pursuit. I am an attorney with experience in real estate, and I have helped many clients learn the legal details involved in flipping property. This blog will help you understand what you need to know when you are buying and selling a home as well as information about paying taxes on money made and property owned. Flipping houses can be a very profitable activity as long as you know how to do it legally.