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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PHIL L.
My wife finally decided to retire sometime this year 2015,just hasn’t set the date until talking with her union retirement office.
In Oct she will have worked 37 years and in Nov will turn 63! We have been told buy other workers that if she retires end of Nov and waits 90 days it will change the amount of her SS.
Lorenzo D.
Congratulations to your wife on her upcoming retirement Phil, that’s great!
If your wife chooses to get benefits any time prior to reaching her full retirement age, her monthly benefit amount will be reduced (her full retirement age is determined by the year of her birth).
We use the highest 35 years of earnings to compute an individual’s benefit amount, and your payment amount is based on the month you decide to start your benefits. Our system is only set up to take applications three months (or 90 days) in advance.
Benefits are paid the month after they are due. So, for instance, if your wife wants her benefits to begin with the month of December, she will receive her first benefit payment in January.
For better planning, your wife can create a mySocialSecurity account to review estimates of her retirement benefits, her earnings record, and the estimated Social Security and Medicare taxes she’s paid. When she is ready, she can complete the online application for Social Security retirement benefits in just 15 minutes! We hope this information helps.
PHIL L.
Thank you for your response! She starts her 38 year of work on Oct 13 and turns 63 on Nov 2 so she is retiring by the end of Dec at latest. What we have been told was if she waits for three months before getting her SS it would for some reason change the amount she gets? She will be taking it at age 63 just not sure how long after retiring to do it.
Lorenzo D.
Phil, thanks for letting us clarify any confusion. Yes, her monthly benefit amount can change every month she waits to apply prior to her full retirement age. We will establish her monthly benefit amount based on the month she decides to start collecting her benefits. Perhaps the confusion about the “90 days” is caused because she can apply for benefits three months (or 90 days) in advance. She can apply in October 2015 and schedule her benefits to begin in January 2016. In this scenario, your wife will receive her first payment in February, because we pay benefits after the completion of the month they are due. She could also select benefits to begin in October, November or December 2015, but the amount will be reduced. If she is working throughout the end of 2015, she may want her benefits to begin in January 2016 – see How Work Affects Your Benefits. If she or you have any additional questions about when she should apply or begin her benefits, please contact us at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. and 7 p.m., Monday through Friday. Wait times are generally shorter if you call later in the week.
PHIL L.
Since you answered my question about my wife retiring some things have changed! Her company made a small offer of $10,000 to get top earners to retire and this is like free money as she was retiring at the end of this year. If she takes it her last day could be Aug28th and she filed her retirement papers for Sept 1. My new question is will her est amount change from the 62 years est to 63 year old est if she hold off on SS until her birthday Nov 2,2015? Also the est for 62 back in 2014 stated the new numbers est of earnings probably same as last few years.She has earned $19,000 less at this point in the year but still would have four weeks of pay plus the $10,000 that would have taxes taken out so she might be within a few thousand dollars of last few years. Thanks Phil
Ray F.
Yes Phil, the monthly Social Security retirement benefit amount will increase the closer your wife gets to her full retirement age. Remember, you can start your retirement benefits as soon as age 62, but they will be reduced by a fraction of a percent for each month you receive them before your full retirement age.
We recommend that your wife make an appointment with one of our representatives by phone or in person to discuss her specific situation and ask any questions she may have about when to start her benefits. To make an appointment, your wife should call us at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. Wait times are generally shorter if you call later in the week.
Ray F.
Yes Phil, the monthly Social Security retirement benefit amount will increase the closer your wife gets to her full retirement age. Remember, you can start your retirement benefits as soon as age 62, but they will be reduced by a fraction of a percent for each month you receive them before your full retirement age.
We recommend that your wife makes an appointment with one of our representatives by phone or in person to discuss her specific situation and ask any questions she may have about when to start her benefits. To make an appointment, your wife should call us at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. Wait times are generally shorter if you call later in the week.
Mindy
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joe f.
I’m not finding anywhere in the rules for social security that between 66 1/2 to 70 yrs of age you will automatically retroactive pay for a 6 mo period and your monthly benefit will be reduced. So what do I do to NOT receive retroactive pay. I want to receive my calculated monthly benefit at 70 instead of a calculated monthly benefit at 69 1/2. How do I go about handling this?
W O.
Married 14 years and that was annulled in year 15. Does the ex still retain right to collect based on my SS earnings? Strange but true.
Robert R.
I received a letter from SSA stating that my child’s benefits would be reduced from $234 to $86 and then would return to $234, without any explanation. I have received nothing in the way of child’s benefits for June and I have difficulty communicating with SSA since I live in South America. Can anybody explain what is going on?
Lorenzo D.
Robert, Unfortunately your concerns are a bit more complex than we can address on our blog, and for security reasons we do not have access to information about your child’s account in this venue. Please contact your local U.S. Embassy or consulate for assistance. You can find their contact information here.
Corine H.
My comment was about the loop hole. I retired in 89 after 20 years service. I didn’t know about the loop hole. I didn’t get a penny of s/s until I was 75 and a widow. Then it was I/3 of my husbands as I had worked for the school and got my trs check .
Stephen
I pulled the trigger and filed for benefits to start in Oct of this year. I will be 62 years old. My last day at work will be Sept. 25, 2015. I will get one full pay check on Oct. 1 and three days pay (the last few days of Sept.) Oct. 8th. I also will get my vacation, partial sick time and saved holidays pay out on that last check. all earned before my retirement date. It will be about 45000 dollar payout. Is this a special payment or will it count towards my monthly earning limits?
James L.
Stephen, generally, any payments you receive for the work you did before you begin receiving Social Security benefits will not affect your benefit and will be considered a special payment. If your yearly earnings exceed the earnings limit due to a special payment, you should contact us in order to prevent the payment from being included as part of your total earnings for the year. Please visit our publication, Special Payments After Retirement, for further information. Hope this helps.
Stephen
I think your link is broke. I Googled your the title and found this.
http://www.ssa.gov/pubs/EN-05-10063.pdf
C J.
My wife started collecting SS when she reached age 62. She gets about $650 p/mth. I will wait until I am 66 to collect. Let’s say I will collect $2000 p/mth. When I file for SS at 66, does my wife’s spousal benefit go to $1000 p/mth plus my $2000 p/mth making our total SS $3,000 for our household?
Lorenzo D.
Good question, and while we can’t address specifics of your case on this blog, here are some general rules. If your wife qualifies on her own record, we will pay that amount first. But if she also qualifies for a higher amount as a spouse, she’ll get a combination of benefits that equals that higher amount. Find out more on our web page, “Retirement Planner: Benefits For Your Spouse.” For more information, contact us at 1-800-772-1213, Monday through Friday between 7 a.m. and 7 p.m., or you can visit your local office.
Gail C.
Want to sign up November in 2015.