Posted on Friday, October 17, 2025
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by AMAC, D.J. Wilson
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1 Comments
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Retirement is a milestone achievement that offers freedom to shape a new future. However, it is important to be financially flexible during this all-important stage of life. The U.S. government established Social Security to provide a financial boost to the aged and serve as a safety net for shortfalls in income. People contribute to Social Security during their working years and later apply for Social Security to receive monthly benefit payments. The payments are intended to supplement retirement savings. Regardless, it’s vital for people to plan for retirement with flexibility to ensure that they can live comfortably during the golden years.
Investing in your future
Saving up for retirement is vital and the sooner the better applies. Contrary to popular thought, Social Security is not intended to be a person’s sole source of retirement income. Rather, it is intended to offer economic assistance and serve as a supplement to retirement savings. Social Security benefits essentially bridge the gap between retirement savings and what people need to live. Contributing to retirement savings accounts provides practical ways for people to save money for retirement. Click here to access Bankrate’s 9 best retirement plans in September 2025. Also, consult your financial advisor before making important financial decisions to ensure you are on the very best path.
A milestone achievement
Setting financial goals for retirement is a wise practice. Experts say that plans should be flexible and accommodate both early and late retirement options to account for the unknown. Since the optimal time to retire and/or collect Social Security depends on independent factors, making the right decisions that work for you are vital to securing financial stability and ensuring personal happiness. People can retire at any age if they can afford to, but the earliest people can collect Social Security is age 62. Waiting later to collect is often a good idea as benefits increase over time up to age 70.
How Social Security works
Social Security is a term used for the federal Old-Age, Survivors, and Disability Insurance Program. Created in 1935, Social Security is a social insurance program that is paid for by workers and employers, with the Social Security Administration (SSA) serving as administrator. The Social Security program supports retired individuals and qualifying family members, disabled people and qualifying family members, and survivors. People can apply for monthly Retirement Benefits at any time after reaching age 61 and 9 months. Payments are calculated based on lifetime earnings.
Jeopardy for the Security System
The Social Security system is currently not bankrupt, but it has flaws. Mainly, Social Security runs deficits and faces rising shortfalls. Concerns about the program’s future are prompting younger people to establish retirement funding plans early to save more for the future. The Social Security program is also frequently criticized. Per Federal Budget in Pictures “…Social Security is a bad deal for workers and their families because they could receive two-to-three-times as much, on average, from saving and investing their own money, without adding the debt burden for younger generations.” It’s scary to think about Social Security failing. Yahoo Finance explains, “Millions of people paying into potential retirement benefits are worried that the well will run dry by the time they reach retirement age, even with raising the retirement age. With all the costs of healthcare, health insurance programs, disability benefits and just the general cost of living, cuts to Social Security could have devastating repercussions.” The trust fund reserves used to pay beneficiaries are projected to become insolvent in about 10 years. Experts suggest that higher payroll taxes can extend the life of Social Security.
If you keep working
Most people look forward to enjoying new life pursuits in retirement. Positive lifestyle changes can include spending more time with family, exploring hobbies, increasing travel, or volunteering. But not everyone wants to retire at the earliest date that they are eligible for Social Security. People who continue working and wait to apply for Social Security until full retirement age, or up until they turn 70, can do so without penalty. However, if a person turns on Social Security ahead of full retirement age, and they continue to work and make over a specified amount, they are required to pay Social Security back. Once you hit full retirement age there is no limit on earnings.
Timing for Social Security
The ideal timing largely depends on personal circumstances. Experts say that if you can afford to wait, delaying Social Security can pay off in the long run. But that advice might not work best for everyone. Per Clark.com, “Perhaps not surprisingly 62 is the most popular age at which Americans start claiming their Social Security benefits. Reports vary, but just less than one-fourth of Americans started cashing Social Security checks at 62 as of 2024. That number has trended down over time, although it tends to increase during economic turbulence.” They also point out that fewer than 9% of Americans wait until they are 70 years old to get the maximum Social Security benefit. People should review their annual Social Security Statement to see their projected monthly benefits, assuming they continue to work and earn about the same amount through those ages. Married couples must also decide whether it’s better to take their own or their spouse’s benefits and understand the ramifications for doing so early.
Early retirement
The picture of retirement varies from person to person, with most people intending to work until they can afford to retire comfortably. The term “early retirement” refers to people who retire before they reach something called full retirement age. These people typically leave the workforce ahead of qualifying to receive full Social Security benefits. The Social Security Administration, SSA, explains that people can decide when to apply based on what works best. They give this example, “…some choose to apply earlier to get payments spread over more years, and so family members can apply for Family benefits sooner.” A major drawback of that action is a reduction of benefits. Again, at full retirement age, Social Security benefits are not affected by income. However, people in early retirement who earn more than a certain amount are subject to a reduction of benefits.
Postponing retirement
It’s worth emphasizing that retirement and collecting Social Security are two different things. For instance, a person can retire and wait to collect Social Security to maximize benefits, if able. There are many reasons why people may postpone retirement, including the need for income and/or personal fulfillment. The Social Security Administration (SSA) defines Full Retirement Age (FRA) as the point in time between age 66 and 67, depending upon birth year. SSA emphasizes that retirement benefits will be higher the longer you wait to apply, up to age 70.
What should people do?
A one-size answer does not fit all. Different options exist depending upon individual circumstances. There are a great many reasons for people to retire early if they are financially secure. But that doesn’t mean that early retirement is right for everyone. People who risk running out of money are better served to delay retirement to maximize Social Security benefits. Talk to a trusted financial advisor to learn what is right for you.
The importance of retirement & Social Security flexibility
Without a crystal ball, it’s challenging to predict life changes that can occur and affect retirement decisions. Some people end up postponing retirement while others may choose to retire ahead of schedule due to circumstances beyond their control such as health problems, layoffs or age discrimination, or caregiving responsibilities. Either way, flexibility in retirement planning can help people go with the flow to make the best retirement decisions based on their circumstances.
Disclosure: This article is purely informational and does not constitute a substitute for professional advice. Consult your trusted financial advisor for advice.
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