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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Jeff
I’ve tried the “ask a question online” at the SSA.gov site twice and have gotten lots of answers, but none to my questions. What I need to know is: If my wife (who does not now work) starts her Social Security at age 62 and I keep working without retiring, does my income reduce her benefit? Also: If I retire at age 64 3/4 and my birthday is late in the year (when we will also apply for the spousal benefit), do all my months of income for the year leading up to starting Social Security count against the max before 2-for-1 reductions? In other words, will the reductions apply to the very first check, assuming that I’ve already hit the maximum earning allowed without reduction? Will my wife’s Social Security payments prior to my retirement affect the earnings/reduction calculation? Thanks in advance for your reply and thanks for having this site.
Ray F.
Hi Jeff. Your income will not reduce your wife’s retirement benefit-amount. In regards to your second question, please see our “Retirement Planner: Special Earnings Limit Rule” for complete information. To learn more, read our publication: “How Work Affects Your Benefits”.
Also, your wife’s retirement benefits do not affect the calculation of your monthly benefit amount. However, she should consider that if she begins to receive benefits at age 62 or prior to her full retirement age, her benefits will be reduced. The reduction factors are permanently applied to all of the benefits she may qualify for. Your wife may still be eligible to collect reduced benefits on your record when you apply. Remember, if someone is eligible for both, his or her own benefit and for benefits as a spouse, we always pay their own first. If their spousal benefits are higher than their own retirement benefits, he or she will get a combination of benefits equaling the higher spouse benefit.
Please call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) for further assistance. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Generally, you’ll have a shorter wait time if you call later in the week. Thanks!
dietvia.com
amen
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David p.
I turn65 in July 2017 and have to keep working to make ends meet I amgoing to draw ss staring in october if I keep working can I make all the money I want With out getting taxed to high I make 81,000 a year
Ray F.
Hello Mr. Pedroza, you can still work and receive your Social Security retirement benefits at the same time. However, since you will still be younger than the full retirement age and (probably) earn more than the yearly earnings limit, your Social Security benefits will be affected. For 2017 the earnings limit is $16,920 (for individuals under full retirement age). You can use our earnings test calculator to see how your earnings could affect your benefit payments, or read our publication: “How Work Affects Your Benefits”. In regards to your tax question; keep in mind that everyone working in covered employment or self-employment, regardless of age or eligibility for benefits, must pay Social Security taxes. Also, some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits. We hope this information helps. 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.
Jeffrey M.
When it comes down to it, there is no mandatory retirement age. Just like there is no one-size-fits-all career, there is no one standard retirement age or income. It all depends on factors such as the desire of the person to keep working (or not), the post-career lifestyle they want to have, their health, if the have any kids at home, if they plan to stay in the same house or downsize, and so on. http://www.howtomakehusbandhappy.com
Ohiodale
I plan on retiring at 66 but using my 401k money only until I turn 70. This will guarantee me and my wife $56k of social security income (in today’s dollars) for the rest of our lives.
Brianna B.
Ima 12, a kou, and a shrub and want to retire.(pls fund me on go fund me to let me retire) can i retire pls let me retire pls REPLY GOVERMENT YALL ARE SCAMS AND SHRUBS
Brianna B.
Ima 12, a kou, and a shrub and want to retire.(pls fund me on go fund me to let me retire) can i retire pls let me retire pls REPLY GOVERMENT YALL ARE SCAMS AND SHRUBS
Daria
I am 63 and my husband is 69. My husband did the File and Suspend last April and plans on taking SS at age 70 as he is still currently working. I am mostly retired but have the option to work more if desired and him to work less. Is it better for him to earn as high an income as possible or for me to do so over the next year or two since he is past full retirement age, and I have not yet reached my full retirement age? My income in the past has been substantially less than his. Does it really matter how much he is earning now that he is past FTA? If his earnings continue to increase for the next year, up to age 70, will it make an appreciable dent in his SS earnings, and will it make an appreciable dent in how much I earn if I take half of his earnings for my SS benefit?
pai
If I decide to retire early and take the lesser social security amount, would the amount still be the same when I reach 65, or would the amount increase to what it would have been if I had retired at 65?
Ray F.
If a person begins to receive retirement benefits at age 62 or prior to their full retirement age, their benefits are reduced. These reduction factors are permanently applied to all of the benefits the person may qualify for. You can create a my Social Security account to review your earnings record, and to get an estimate of your future benefits. Thanks!
bubbly b.
Hello, can you clarify your statement about “these reduction factors are permanently applied to all of the benefits the person may qualify for”? Assume that at my FRA, I will receive $1000/month. If I claim SS before FRA, my monthly check would be $741. Will this amount $741/month will be my permanent monthly check for the rest of my life or will it be adjusted when I reach my FRA? I appreciate your prompt response.
Ray F.
You can start your retirement benefit at any point from age 62 up until age 70, and your benefit will be higher the longer you delay starting it. This adjustment is usually permanent: it sets the base for the benefits you’ll get for the rest of your life. In the scenario you present, if you file for reduced benefits prior to your full retirement age, the estimated $741 amount will be your permanent monthly-benefit amount.
Paul
If I retire at 62 and continue working, is there a limit on how much I can make and continue to draw my retirement.
Ray F.
Hi Paul, 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, this can reduce the number of payments you receive through the year. For 2017 that limit is $16,920. If you apply for benefits at age 62, and work part-time thereafter you will be considered “retired” only if your monthly earnings are $1,410.00 or less. You can use our earnings test calculator to see how your earnings could affect your benefit payments, or see “How We Deduct Earnings From Benefits”. To learn more, please visit our Frequently Asked Questions web page or read our publication: “How Work Affects Your Benefits”. We hope this information helps!
Billy C.
I am 62 and currently am on SS for the last 5 months.If I get a full time job and go off SS until I turn 66 what happens?
And if I make $400 a month over what in suppose to make being on SS what happens?