When you reach retirement age you have the opportunity to start receiving Social Security benefits. But the age at which you receive full benefits known as retirement age varies depending on the year you were born.
If you need income before reaching full retirement age you have several options. Here are four ways to earn income while waiting for full retirement age :
- Work part-time: One option is to continue working, either in your current job or a new part-time job. This can help you bring in additional income and keep you active and engaged.
- Delay claiming Social Security: If you are able to delay claiming Social Security benefits until after your full retirement age, you can receive a higher monthly benefit. For every year you delay past your full retirement age, up until age 70, your benefits will increase by about 8%.
- Tap into savings: If you have saved up money in a retirement account, such as a 401(k) or IRA, you can start withdrawing funds to cover living expenses. Keep in mind that there may be taxes and penalties for withdrawing money from certain types of accounts before age 59 1/2.
- Consider a reverse mortgage: If you own a home and have equity in it, you may be able to take out a reverse mortgage. This allows you to borrow against the value of your home and receive the money in the form of a lump sum, monthly payments, or a line of credit. A reverse mortgage can provide a source of income while you wait to reach your full retirement age, but it is important to understand the terms and potential risks before deciding if it is the right choice for you.
It is important to carefully consider your options and plan for retirement income before you reach your full retirement age.
Taking the time to research and explore different options can help ensure that you have the financial resources you need during this stage of life.