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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Doug
If I stop working at 62 and wait to start collecting social security at 70, how can I calculate how much will receive at 70?
Ray F.
Hi Doug, our Retirement Estimator gives you future estimates of monthly Social Security benefits based on your actual Social Security earnings record. Also, we have a variety of benefit-calculators to help you plan for the future. Which calculator you choose depends on what you want to do. The best way to start planning for your future is by creating a my Social Security account online. With your personal my Social Security account, you can verify your earnings, get your Social Security Statement, and much more. We hope this helps. Happy planning!
Doug
I recently reviewed my SS benefit statement. The statement says at age 70, my payment would be about $ 3,440/month. Is this payment based on working until age 70 at my current earnings rate? If so, then if I quit working at age 62 won’t my payments be less than $3440/month? Thanks for your help.
Ray F.
You’re right Doug, for retirement benefits we estimate your benefit amount at full retirement age, age 70 and age 62 based on your continuing to work and current earnings rate. Generally, the older you are and the closer you are to retirement, the more accurate the retirement estimates will be. Our online Retirement Estimator gives estimates of monthly Social Security benefits based on your actual Social Security earnings record. Also, we have a variety of calculators to help you plan for the future. Which calculator you choose depends on what you want to do. Happy planning !
Petya S.
Can I retire at the age of 61 I have been working for a total of 7 years? If Yes, how much they will pay me?
Ann C.
Hi, Petya. The earliest age you can apply for reduced retirement benefits is 62. Generally, you will need to have 40 credits, or 10 years of work paying Social Security taxes, to qualify for any type of Social Security benefit. Visit our Retirement Planner page to estimate your retirement benefits and determine the best retirement age for you. Thanks.
Petya S.
Thank you!
Melissa
Which results in more SS benefit: working after full retirement age (and taking the option of pre-full retirement option of 5/9ths percent for 4 months– limit will not be met by my birthday), or waiting four months or later to claim benefits? My salary will not change a lot, but will eliminate at least a couple of low income years out of the 35. I am puzzled by this question: how is the annual SS review adjustment calculated, and how does this amount compare on average with delaying SS benefit while working, when one gets an 8% increase per year while not claiming SS?
Ray F.
Thanks for your question Melissa. There are a lot of factors that go into deciding when to retire, the decision on when to file is a personal one. Please visit our Retirement Planner for more information on when and how to apply for retirement benefits. You earn Delayed Retirement Credits when and if you delay getting your benefit up until age 70. To help you plan, you can estimate the amount of your own benefit using our online calculators. You can also create a my Social Security account to verify your earnings, and get a copy of your Social Security Statement. We hope this helps.
BRENDA B.
I RECEIVED A LETTER FROM YOU STATING THAT I SHOULD STOP RECEIVING BENEFITS OFF MY HUSBANDS SS# AND THAT I WOULD MAKE MORE MONEY OFF MY OWN. HOW DO I CHANGE AND UPON HIS DEATH CAN I GO BACK TO HIS IF IT’S LARGER.
Ray F.
Thank you for using our blog, Brenda. You can call our toll free number at 1-800-772-1213 to make an appointment with your local Social Security office. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting, it also establishes a protective filing date. You may be able to complete the online application for your Social Security retirement benefits. If you cannot apply online or you decide not to finish applying online, for whatever reason, you can also apply by phone. Representatives at our toll-free number are available Monday through Friday, between 7 a.m. and 7 p.m. They can assist you with your application online. Generally, it’s best if you call later in the day or later in the week. To learn more about survivors’ benefits, please read our publication: How Social Security Can Help – When A Family Member Dies.
Michael
Q: I’m 55 years old and have enough credits for social security, but not at the retirement age. My question is if I stop working now and live on my savings till I turn let’s say 67 or 70, will I still get what’s projected on my social security statement as of today $2400 at 67 or $3100 at 70, or will I get less when I start to collect later on in life if I don’t work anymore?
Ray F.
Thank you for contacting us Michael. The amount of benefits you receive is established at the time you applied for Retirement Benefits. Generally, we use the highest years of earnings to calculate your monthly benefit amount. Your benefit amount is based on the amount of your average lifetime earnings and your age at the time you applied. The longer you delay to start receiving benefits the higher the benefit mount.
Our Retirement Estimator gives you future estimates of your monthly Social Security benefits based on your actual Social Security earnings record. In addition, we have a variety of other calculators to help you plan for the future. Which calculator you choose depends on what you want to do. Also, we suggest that you create a my Social Security account. With your personal my Social Security account, you can verify your earnings, get your Social Security Statement, and much more. Happy planning!
Ron
If I retire from a company and collect SS benefits at age 65, am I able to continue working for that same company at a salary of $15,200 without if effecting my SS benefits?
Ray F.
Thank you for your question Ron. 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 if you make more than the yearly earnings limit, we will reduce your benefit. For 2016 that limit is $15,720 and for 2017 the limit will be $16,920. This limit changes in the year you reach full retirement age. To learn more, visit our Frequently Asked Questions web page. 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.
terry
If I start collecting social security benefits at age 65 1/2, will the benefit be higher than if I had started at collecting at age 65? in other words is it prorated by month or just year.
Ray F.
Yes Terry, your benefit will be higher –by month- the longer you delay starting it, up to age 70. The reduction factors are permanently applied to the benefits, individuals may qualify for, once they opt to start their retirement benefits prior to their full retirement age. Our Retirement Estimator and Benefit Calculators can help you calculate your own benefit estimates and tell you what affects your benefits. We hope this helps!
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carole l.
my husband died from cancer while collecting his social security of $2,100 per month. We were married 40 years at that time. I will be 62 in July and am seriously thinking of collecting widow’s benefits (my ss is much lower as I was a stay at home mom for years so it makes no sense to wait to collect mine) what kind of reduction will there be if I start collecting his at age 62?
Kasey W.
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