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Deciding when to start receiving Social Security benefits is a choice that involves life events, retirement savings, and a host of other considerations that enter into the overall picture of what retirement looks like. Naturally, all expenses are considered and weighed against the amount of money that is to be received from Social Security benefits, but certain life events reduce or eliminate our choices effectively.

Money and expense is a major concern. Early retirement means a reduction in benefits, fewer purchasing choices in life and sometimes less structure. Insurance is a must for most people and certainly for those with health conditions and concerns. The cost of a self purchase medical insurance policy will exceed what many people are able to pay with reduced Social Security benefits and Medicare is not available until a person reaches the age of 65.

Many of us have learned to live on less money and reduce household living expenses. Comparison shopping and buying food in bulk for savings,(divide and freeze it) is a big cost cutting measure for retirees. Entertainment expenses are limited and if you have a car, furnace, or roof repair to contend with there is no extra Social Security benefits that cover these emergency situations.

Some of us experienced life events that hampered our ability to save for retirement. Health deterioration, divorce, bankruptcy, failed businesses, or high risk investments placed us in a less than desirable position to sustain retirement savings. Certainly, there are those who simply did not plan for retirement and spent more money than they had to spend.

Many seniors are in a real bind today and have little choice but to continue to work as long as they are able. We should note, however that seniors who did the right things and planned through financial investing have lost a great amount of money in the stock markets with the economic meltdown. Visions of early retirement have been snatched from them along with losses incurred.

The underlying and nagging question is about the Social Security system itself. It has been in trouble for years and will millions of baby boomers getting ready to retire, it's under an added strain. Both parties have proposed the same kinds of changes to it (depending on who was in power at the time) and yet no significant changes have been put through to make the system efficient and sustaining.

The US Congress is now considering mandatory government retirement accounts. They've already held talks with financial organizations weighing the benefits of such legislation. Though no legislation has been crafted, such a program would have a great impact on citizen choices with stock investments and retirement planning. Implicit trust in the government is not in evidence at this time when the economy is sinking.

Weighing all the factors and deciding when to start Social Security is very difficult for many and somewhat easier for those who have planned well in advance for retirement. However, with today's economic woes even people who planned and saved money find they may have to continue to work more years than they'd planned or take a part-time job to supplement their income.

If Congress acts on establishing a new system for all retirement planning and current retirees, it's likely to be a whole new ball game and planning may be decided well in advance of our deciding to take Social Secuity or whatever name is attached to the government mandate.

Learn more about this author, Mona Gallagher.
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