The Mistake: Not Working Long Enough

Not working enough will lower your benefits significantly. It’s also why so many retirees choose to work for as long as they’re able to. First of all, your Social Security will depend on your 35 highest-earning years. That means that if you haven’t worked for this whole duration, every year you’ve been unemployed will be calculated with $0, bringing your average down.

Furthermore, there are credits to worry about. You’ll need 40 work credits in order to qualify for benefits but you can only earn 4 of them per year.

In 2019, Americans had to earn $1,360 for one credit- or $5,440 for all four. That’s why not working can seriously affect your retirement, and not in a good way at all!

Solution: Do the Math Before Retiring

As soon as the first thoughts about retirement cross your mind, it’s time to whip out your calculator- or pen and paper if that’s more your style. The last thing you want to do is let go of a career because you think you’re ready to retire.

If you do this and then discover you’ve made mistakes along the way, it’ll be incredibly difficult to find a new job. Seniors typically have a harder time finding work, so don’t be rash in your decision making.

Have you accumulated enough credits? Have you worked for 35 years? If the answer is no, maybe you should consider retiring later. Remember, the more you work the more money you’ll be entitled to on a monthly bases, and if your health isn’t holding you back, you should take advantage of this opportunity.