The Best Age for YOU to Retire
Reading Time: 2 MinutesLast Updated: May 12, 2015
You may be trying to figure out what the most beneficial age is to say goodbye to your colleagues at the office. This is one of the most important and challenging decisions you’ll make in your life. When you decide to retire affects not only you, but it could have serious, long-lasting consequences for your family members, too. The answer is not the same for everybody, and I’m going to share some information that can help you make an informed decision based on your own personal situation.
If you delay receiving your Social Security until age 70, the monthly amount is 32 percent more than you would get at full retirement age.
From a Social Security standpoint, you can start getting lower benefits as early as age 62, or you can delay retirement up to age 70 for your maximum monthly benefit amount.
For example: Let’s say your full retirement age for Social Security benefits is 66, and your monthly benefit at that age is $1,000. Here’s what your monthly benefit would be, starting at different ages:
* Age 62 = $750
* Age 63 = $800
* Age 64 = $866
* Age 65 = $933
* Age 66 = $1,000
* Age 67 = $1,080
* Age 68 = $1,160
* Age 69 = $1,240
* Age 70 = $1,320
At age 62, your benefit amount is about 25 percent lower than your full benefit at age 66. If you delay receiving your Social Security until age 70, the monthly amount is 32 percent more than you would get at full retirement age. From 62 to 70, that comes to a monthly increase of $570 or $6,840 a year.
When to retire is a personal decision that you should base on factors such as your current cash needs, your health, and family longevity, whether you have other retirement income sources, and of course, your anticipated future financial needs and obligations. Remember, the average retirement will last for about 20 years, and Social Security benefits are typically adjusted annually for inflation to help maintain your standard of living. For more information, visit www.socialsecurity.gov.
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About the Author
Doug Walker, Deputy Commissioner, Communications
Deputy Commissioner, Office of Communications
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Richard D.
I am retiring in 2017 at age 57 1/2, I have more than 40 max quarters, I plan on applying for SS at age 62 . Do I still have to contribute into SS until I am 62 to collect the max i will receive at age 62, or will there be a reduction in benefits? Thank You
R.F.
Thank you for your question, Richard and congratulations on your upcoming retirement. The amount of the Social Security benefit you receive is established at the time you apply for Retirement Benefits. It is based on the amount of your average lifetime earnings and your age at the time you apply. Generally, we use the highest years of earnings to calculate your monthly benefit amount. Reduction factors are permanently applied to all benefits an individual may qualify for, once they opt to start benefits at age 62 or at any time prior to their full retirement age. You can use our online calculator where you can test various scenarios and retirement ages to estimate your benefits. You can also create a my Social Security account to review estimates of your retirement, disability, and survivors benefits, your earnings record, and the estimated Social Security and Medicare taxes you’ve paid. we hope this helps!
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noy l.
My Aunt worked in the U.S. with a legitimate social security number for more than 20 years right before she was about to retire. Unfortunately, she had to return to her country and wait for her green card to be approved. She will now be returning to the U.S. with a green card and her social security number is still valid. At the age of 75, will she be able to get back pay for all the years she wasn’t able to apply?
R.F.
Thank you for your question Noy. Individuals must officially file an application to receive Social Security benefits. For retirement benefits, we generally allow up to six months of retroactivity payments, only after the applicant has reached his or her full retirement age. Your aunt should contact her local Social Security office as soon as possible after her arrival to the United States. Or she can call our toll free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Your aunt can also contact the local U.S. embassy or consulate for any assistance related to Social Security programs and benefits. We hope this information helps!
John F.
My current take home pay is $1844 per month. I am 62 and will be 63 Nov 2016. My SS payment at 62 is just over $1600 and will be just over $1700 in Nov. As you can see, I am working for only $100 more a month. I am giving up all of my free time had I retired. I don’t see why I am working anymore. Your comment please. Thank you!
R.F.
Hi John. Please bear in mind that the decision on when to apply for benefits is a personal one. We can only provide you with the information to help you make the best choice according to your own situation. You can still work and receive your Social Security retirement benefits at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefit. For 2016 that limit is $15,720. This limit changes in the year you reach full retirement age. See “How Works Affects Your Benefits” for more information. To help you plan for the future, visit our Retirement Planner. If you have additional questions, please call our toll free number at 1-800-772-1213, Monday through Friday between 7 a.m. and 7 p.m. and talk with one of our representatives. Thanks!
Pam
Did you receive my question?
Pam
I retired August 2016 and also turned 65 this past July 2016. Since my full-time retirement is at age 66 and I don’t work anymore, if I choose to delay my social security monthly benefit until I turn 66 (at my full retirement age) in July 2017, will my monthly social security benefit be more then than it would be had I started collecting at 65?
R.F.
Yes Pam, the longer you delay your application for retirement the higher the benefit amount you will receive. If a person files and starts receiving retirement benefits at age 62 or any time prior to their full retirement age, their benefit amount is reduced. In the other hand, you earn Delayed Retirement Credits when and if you delay getting your benefit up until age 70. To help you plan for the future, you can use our Retirement Planner and you can also create a my Social Security account to verify your earnings, get your Social Security Statement, and much more. Also, individuals who are age 65 or older and not ready to start their monthly cash benefits can use our online retirement application to sign up for Medicare ONLY and apply for their retirement benefits at a later date. We hope this information helps!
Let R.
Baby boomers whose fully retirement is age 66 and receiving SS benefits. Can they still work and earn as much as they can without being penalize?
R.F.
If you were born January 2, 1943, through January 1, 1955, then your full retirement age for retirement insurance benefits is 66. If you work and are full retirement age or older, the amount you make at work will not affect your Social Security benefits, no matter how much you earn. Visit our Retirement Planner: Getting Benefits While Working for more information.
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Ed
My wife currently receives a Social Security benefits based on her own employment record. She filed at age 62. I’m going to file this month which will be my FRA. Will the SSA automatically increase her benefits based on spousal benefits or must she file again in order to get the higher amount? Thanks