Are you thinking of retiring early? Here's what happens to your Social Security benefits if you choose to end your career before age 50

One study commissioned by Credit Karma found that 53% of Gen Z consider themselves part of the FIRE movement, which requires extreme savings — typically 50% or more of their income — by living lean and cutting back on expenses.

While you could potentially live off your savings and investments if you retire in your 30s or 40s, you can’t claim your Social Security benefit until age 62 at the earliest, and you’re not eligible for Medicare until age 65.

So what’s the best plan for FIRE types?

How Social Security benefits work

Your full retirement age, as defined by the Social Security Administration (SSA), isn’t necessarily the age you stop working. It’s based on your year of birth, which typically works out to somewhere between age 66 to 67. You can apply for your benefit starting at age 62, but your benefit will be reduced accordingly — and that reduction could be as much as 30%.

Your benefit is calculated using your average indexed monthly earnings (AIME), which is taken from your 35 highest-earning years and adjusted for wage levels and cost of living. The resulting calculation is called your primary insurance amount — the amount you’ll receive at full retirement age.

CNBC reported that the average Social Security benefit in June was $1,918. This, of course, will vary, depending on your AIME and the year you claim your benefit. However, if you have fewer than 35 years of work under your belt, that will impact the amount of your benefit.

When thinking about retirement, you should have a plan for savings that isn’t just pushing you to rely on your Social Security benefit to sustain your cost of living. For example, putting some money aside throughout your working years into retirement savings accounts — like a gold IRA.

A gold IRA is different from a traditional IRA as it combines the tax advantages of a traditional IRA with the inflation-hedging properties of investing directly in gold. This allows you to diversify your portfolio while also safeguarding your retirement savings against economic volatility.

With the help of Thor Metals, you can open a gold IRA that seamlessly integrates into your investment strategy. Similar to an automated savings platform, Thor Metals makes it easy to schedule regular contributions and manage your gold investments efficiently.

If you want to learn more about whether this is the right investment for you, you can get a free information kit

Understanding your Social Security benefits and determining how much you need to retire can also be overwhelming on your own. Consulting with a financial advisor for your retirement planning can help provide you with strategies aligned to your specific financial goals.

Zoe Financial is an online platform that helps connect consumers with a network of financial professionals, including accredited fiduciary advisors, who are vetted based on their credentials, education, experience and pricing.