A 55-Year-Old Single Mom Who's Worried About Getting Laid Off Wants To 'Hang On' Until 69 For Maximum Social Security Benefits

The longer you delay Social Security benefits, the more you will receive when you tap into the program. A 55-year-old single mom knows this fact but faces a tough financial situation, and she wants to "hang on for the next 14 years" until she can collect higher Social Security benefits.

She has about $900,000 in her 401(k) but lives paycheck to paycheck. She also has a mortgage, HELOC, and auto loan. To top it all off, she is raising two teens and is nervous about the risk of getting laid off. The single mom shared her details on Reddit and turned to the community for advice. 

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Start Applying For Jobs

The top commenter suggested that the single mom acknowledge that she has done a great job so far and that she hasn't gotten laid off yet. It's entirely possible that the single mom holds on to the same job until she turns 69, but the commenter also suggested a proactive approach in case the job market gets tough.

"Please start applying now, and even if it's a fractional role or a contract role, it gives you income," the commenter said.

Looking for a contract role makes it easier to keep the current job while diversifying income. That way, the single mom's annual income doesn't drop to zero in the event the employer lays her off.

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Monitor Expenses And Get The Kids To Help

Another top commenter suggested monitoring expenses and looking to get them down as much as possible. While you can't do much about the house, car, and property taxes, there are other ways to trim expenses.

"Focus on ways you can save," the commenter said. "Check every expense, down to streaming subscriptions and the temperature you keep your house at. And yes, if your kids are driving, they can be helping to pay for some expenses. Their total upkeep is not your job forever."

That second suggestion implies that the kids should get part-time jobs to help with some of the expenses. It can be a valuable experience for them, as they can feel a deeper sense of purpose knowing that they are playing critical roles in keeping the household’s finances afloat. Part-time work can also inspire the kids to pursue higher-paying jobs in the future or even consider entrepreneurial pursuits.

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Consider Taking Out Social Security Earlier

The single mom's $900,000 401(k) carries a lot of weight and can help facilitate a smooth retirement when the time comes. That 401(k) can continue to grow over time, meaning she may have close to $2 million in a decade, depending on how it is invested.

Some commenters suggested she doesn't have to wait until 69 or 70 to receive Social Security benefits. Although she will receive a little less per month by taking it out early, she also has to live long enough to break even if she starts receiving benefits at 70. Although the conversation usually focuses on taking out Social Security at 62 vs. 70, a midpoint can also help.

"For me, the breakeven was at 99 years," one commenter said. "I’d rather take Social Security income at 67 because I know I won’t live to 99."

"There’s no guarantee you’ll be healthy until age 70; you may not even live that long," another commenter said.

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