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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Billy
im 62 and have been getting SS for a few months.If I get a full time job what will happen? Will I have to pay back the 5 months I already collected?
and if I make $400 over the amount I can make per month getting social security what happens?
Ken W.
Back to you Ann. So if between age 63 and age 66 I do not contribute any more to SS tax because I have no earned income, and if my earning records for the highest 35 years of income is computed to be the same when based on receiving SS at age 63 or at age 66, I would get more SS at age 66 than at age 63?
Carl
If my non-working spouse files at age 62, and then I ‘file-and-suspend’ and continue working at 62, will she receive more than if I don’t ‘file-and-suspend’ ?
Ken
If I retire at age 63 but do not collect my SS retirement until full retirement age of 66, will I get the same amount at 66 that I would at age 63? Assume that I have no earned income from 63 to 66.
A.C.
Great question! We have an online calculator where you can test various scenarios and retirement ages to estimate your benefits. You can also create a mySocialSecurity 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. Your benefit will increase a certain percentage from the time you reach full retirement age, until you start receiving benefits, or until you reach age 70. The percentage varies depending on your year of birth and the number of months you delay the start of your retirement benefits. The yearly rate of increase for those born in 1943 or later is 8%. To calculate your actual increase, go to our Delayed Retirement web page. We hope this helps!
Jay
If at 70 years old, I only have 30 years of working service, can I work past that so that I can achieve 35 years inorder to avoid any “zeroes” that may be averaged in for social security?
Will those extra 5 years of working after 70 years old at full salary increase my social security benefits?
Also, can I apply for social security benefits after 70 years old?
A.C.
Hello, Jay. Each year we review the records for all Social Security recipients who work and will refigure your benefit if applicable. If you apply for retirement benefits and decide to work, you should notify us immediately. Check out how work affects Social Security. Your benefit will increase a certain percentage from the time you reach full retirement age, until you start receiving benefits, or until you reach age 70. The percentage varies depending on your year of birth and the number of months you delay the start of your retirement benefits. The yearly rate of increase for those born in 1943 or later is 8%. To calculate your actual increase, go to our Delayed Retirement web page. We like to remind individuals age 65 or older and not ready to start their monthly cash benefits, that they 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 helps.
Maynard
Aug 6, 2017 I turn 65. I want to retire with 95% of my full benefits. Do I work until Nov 6, 2017 or do I need to work the full month of Nov 2017?
A.C.
Hi, unfortunately, your question is a bit more complex than we can answer in this forum. For your security, we do not have access to information about your account in this venue. We do ask that members in our Blog community to work with their local office. You can also call 1-800-772-1213, M-F between 7 AM and 7PM and ask a representative to assist you. Generally, you’ll have a shorter wait time if you call later in the week. Thanks!
cindy
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mike
I am 68 and because of a longtime high salary I think I have reach the maximum SS benefit some years ago. Should I take SS benefits now or wait until age 70?
R.F.
Hi Mike. 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. To help you plan, you can estimate the amount of your benefit amount 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. Our system is set up to take applications three months in advance, and at age 68, you can apply for your benefits online at any time now. Remember that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of January, you will receive your first benefit payment in February. Please call our toll free number, 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with one of our representatives for further assistance. Representatives are available Monday through Friday between 7 a.m. and 7 p.m. We hope this helps!
Beverly K.
If over 80 working partime does one still need to pay FICA?
R.F.
Everyone working in covered employment or self-employment regardless of age or eligibility for benefits must pay Social Security taxes. Please visit our Retirement Planner: Getting Benefits While Working for more information.
hennie
how much can i work and earn at 66 and still get my ss