Heres How Pre-Retirees Bridge Their Last Paycheck to Their First Benefit Check
Social Security is a major source of income for many U.S. seniors, but most don’t start collecting it until a couple of years after they leave the workforce.
The average age of retirement in the U.S. is 62, according to data cited by SoFi, while the median age to start claiming Social Security is between 64 and 65, CNBC reported.
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Not everyone follows that script, however.
If you aim to collect Social Security as soon as you retire, it’s important to strategize over how to build a buffer between your final work paycheck and your first Social Security check. Here’s a look at how.
What Happens After You Apply
When you apply for Social Security retirement benefits, the Social Security Administration (SSA) will review the application, according to the National Council on Aging (NCOA). The SSA may wish to clarify some points, and will contact you with any questions if so. Outside of that, benefits should start in six weeks or less, and the first payment will land a month after the start date.
According to the SSA, you can apply up to four months before your preferred enrollment month.
The dates you choose to apply and enroll will play key roles in developing a buffer strategy between your last work check and first benefit check. Once you commit to those dates, it’s time to put together a plan.
Expect Delays
One of the most important things you can do is account for delays in processing your Social Security application and receiving your first benefits.
This has been a problem for many years due to the combination of rising applications and SSA staffing shortages, but as Morningstar reported, it's gotten worse thanks to the Department of Government Efficiency. The Elon Musk-led DOGE obliterated customer service when it eliminated 7,500 SSA employees, many of whom worked in that department or the related information technology.
Long wait times to schedule office appointments, speak with SSA staff on the phone and even get answers online have become a common theme on discussion forums like Reddit.
One Reddit user said they were told by a Social Security representative that the SSA had “not updated their portal yet” and approval usually takes more than 30 days.
“I called them 4x before 60 days have passed without hearing from SS,” the commenter wrote. “Took 8 calls to the local SS number and more than 45 min on hold before someone picked up the call. A call back was not an option. I would advise you to call them every few weeks [after applying]. Note the dates/time/rep you spoke with.”
How To Build a Financial Buffer
To make your final work paycheck last before your Social Security benefits begin, here are some tips gathered from AI and other sources:
Create a Bridge Budget
List fixed costs: Write down essential bills such as rent or mortgage, food, utilities and health insurance.
Cut extras: Stop subscription services, dining out and impulse shopping immediately.
Calculate the gap: Count the exact number of weeks or months between your last paycheck and your first Social Security deposit.
Ration the funds: Divide your net final paycheck by that number of months to set a strict monthly spending limit.
Protect and Manage Your Cash
Move money into savings: Put the money in a liquid, high-yield savings account so it earns interest while you wait.
Time your filing: Apply for benefits up to four months before you want them to start, in order to minimize the gap.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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