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
Comments
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Phyllis C.
I am retiring from my job at 62.5. I want to collect SS benefits the month I retire. I will not be getting another job. If I wait until full retirement age (66.0) will my benefits increase even tho I will not be contributing to Social Security?
HW
Mr Fernandez, Mr Dickerson, or others here from SSA:
Is it true that on an actuarial basis, it does not matter when you take your retirement after 62 or perhaps after FRA? In other words, the years you lose (on average) by retiring AFTER 62 are balanced off (on average) by the increased amount of retirement benefits received (at least until age 70)? This publication http://www.ssa.gov/pubs/EN-05-10147.pdf implies so when says on page 1 “Let’s say your full retirement age is 66 and your monthly benefit starting at that age is $1,000. If you choose to start getting benefits at age 62, we’ll reduce your monthly benefit 25 percent to $750 to
account for the longer period of time you receive
benefits.” Does this mean it EXACTLY offsets the longer period of time (on average), or something else? From the recipient’s point of view, the time value of money to take into account as well as taxes and uncertainty about future benefits.)
Answering this question would go a long way to solving the perpetual problem folks seem to have in figuring out what is better financially. I THOUGHT the answer was “it doesn’t matter much”; that is, if you are perfectly average, it doesn’t matter at all in terms of the lifetime benefit you will receive whether you take the benefit between 62 and 70. Actuary’s point of view — True or False? Or, perhaps, is it the case that it doesn’t matter (in those terms) when you begin taking benefits, but only between FRA and 70? True or False? Your actuaries can tell you. Please share it with the public.
If we can get a clear “yes” or “no” from SSA, I would be most grateful. It would be better than being told that “this is a personal decision.” I need information to make that decision. Thank you.
TomL
Yes and no. All they need to know in order to answer your question is the exact age you will be when you die. ……… What? You don’t know that? Then how do you expect them to give you an answer?
Florian
Nooit meer betalen als u het zich niet kunt veroorloven om het bedrag dat de verzamelaar biedt u.
. Sommigen van hen communiceren op dagelijkse basis
waarmee van dat ze niet bijgewerkt. . Een verzameling agentschap ‘ of evaluatie van de ene die je ‘
kunt verbeteren resultaten terwijl u uw professioneel imago.
. Acties, zoals een rechtszaak, zal tegen u, wanneer
dergelijke maatregelen juridisch kan niet worden genomen, of
wanneer ze niet van plan zijn dergelijke maatregelen te nemen. .
In ruil daarvoor zal zij altijd verwachten dat hun klanten waarheidsgetrouw
en respectvol. . Vele malen deze bureaus kunnen dingen doen die overheidsinstanties niet.
. Dit kan volledig uitlaat uw geduld en tijd te beslissen. .
Het is beter niet te lenen bij uw bedrijf nog niet te
voldoen aan de fiscale jaar bruto winst, maar schulden en leningen zijn onvermijdelijk bij je samengewerkt met leveranciers en klanten belangrijk de normale activiteiten. .
Het bedrijf heeft meestal geen kosten geen kosten als de verzameling inspanning
niet succesvol is. . IK heb meerdere accounts wordt verzameld op:
moet dit de eerste account om gezaagd. . Bijvoorbeeld op een $5.
000 kaart evenwicht, de creditcard maatschappij kunnen overeenkomen om de schuldsanering van twee tot zes maanden. .
Via dit netwerk, kredietverleners worden geserveerd in hun eigen taal via hun ‘eigen’ incassobureau, en financiële verplichtingen worden verzameld via de lokale partner in het buitenland.
. In de overall dish, het ding om te doen is besparen op uw verliezen en begrijpen dat er een keuze moet worden gemaakt
tussen er geen geld op alle, of bijna alle voor terug.
. De National Association of Consumer Advocates vertegenwoordigt deze represaillemaatregelen en leed van consument dit soort oneerlijke handelspraktijken en heeft meer dan 1500 advocaten. .
Als je wilt of meer informatie nodig hebt over FAMS,
hun website heeft tabbladen kunt u klikken op waarmee u
meer materiaal over alles wat ze kunnen doen en hebben gedaan. .
U kunt sue de NCO schuld verzamelaar voor deze overtreding.
. Incassobureaus kunnen ervoor zorgen dat je je houdt aan wat u het beste kent.
. De opmerkelijke schuldverlichting is gebaseerd op reële
getallen en gemiddelden zoals je wilt zien. . Verzameling gesprekken wetten bepalen dat deze
gesprekken worden verondersteld zachte herinneringen aan debiteuren die ze zijn vergeten om de betalingen te verrichten wanneer zij opeisbaar is geworden. .
Achtervolgende vereffenen en inning van schulden van ze is een tijdrovend proces dat kunnen kosten voor verdere financiële gevolgen hebben voor een bedrijf.
. Als de account is niet voldaan op dat moment wordt omgedraaid tot collecties.
.
My weblog Amsterdam Deurwaarder
Fern
I am 68 years old currently collecting half of my husbands SS $1,100 a month and delayed my own SS. I am thinking of taking my own before I reach 70 based on some of the comments on your blog. I will be 69 in Feb 2016. When should I apply to receive my SS? Is it prudent to take now or stick it out and wait? Also if I apply now but don’t want a check until 2916 do I receive the amount the month I apply or the month I receive my check. The difference in the amount between now and February of 2017 when I turn 70 is 260.00 a month. Thanks.
Ray F.
You have great questions Fern! The decision on when to file is a personal one. However, there are a lot of factors that go into deciding when to apply and start receiving benefits on your own record. As you know already – you are currently earning Delayed Retirement Credits on your record, and can continue to earn them 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.
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 October, you will receive your first benefit payment in November. If you need further assistance call our toll free number, 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with one of our representatives, who are available Monday through Friday between 7:00am and 7:00pm. We hope this helps!
M.Boyle
When estimating my Social security between age 66 and 67 on the Estimator it estimates less than 8 % more like 2%. I don’t understand I realize it is only an estimate but why would it be different from the other years?
Ray F.
We apologize for any confusion. Unfortunately, but for your security, we do not have access to your personal information in this venue. To better assist you, please contact your local field office, or call our toll free number, 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with one of our representatives, who are available Monday through Friday between 7:00am and 7:00pm. Thanks!
Roland
I’m seeing the same thing. Below is the calculations from ssa.gov, for each age, monthly amount, percentage change from the previous year.
65 $2312 .076
66 $2488 .076
67 $2531 .017
68 $2742 .083
69 $2952 .076
70 $3330 .128
frank
i am retiring in june, at age 62,which means i will only pay into social security until march. will be benefit be decreased since i am only paying in for 3 months ,i guess what i am asking does it matter in what month i retire,
Ray F.
Hi Frank, everybody must pay Social Security taxes while working, so you will pay taxes until the last day you work. You can start receiving retirement benefits at age 62, but if you decide to get benefits before your full retirement age, they will be reduced no matter what month you choose to retire. There are a lot of factors that go into deciding when to retire, so for more information on when and how to apply for retirement benefits, visit our Retirement Planner. 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. We hope this helps!
Mary
I will be 70 next year (August 2016). By then I will have worked for 10 years and earned 40 points. At 65 I claimed social security on my husband’s record and I got just over $500 a month. I also got medicare on my husband’s record. My husband divorced me last year and I am dependent on what I earn in my job and that social security. Next year I can claim SS on my own record and hopefully retire. Will the SS on my husband’s record be taken away from me? I am not sure how much I will receive next year but I feel sure I will not be able to live on it if it is going to be taken away. I cannot work indefinitely. Someone told me that it will be taken away once I claim on my own but I was told by the dept. that the only way it can be taken away is if I get married again which I do not intend. My husband does not pay me alimony. Can you advise?
Ray F.
Hi Mary and thank you for your question. We cannot be sure how much you will receive on your own record once you attain your 40 credits, until you officially apply. You can continue to receive divorced spouse’s benefits, but if your benefit as a divorced spouse is higher than your own retirement benefits, you will get a combination of benefits equaling the higher amount. Remember that you must report changes and update your records by calling our toll free number at 1-800-772-1213 Monday through Friday, from 7 a.m. to 7 p.m. Hope this helps.
Mary
Thank you Ray, Just one little question.. an easy one. I am 70 next August. When is the best time to apply for social security assuming my 40 points are up by then.. I want to hang on til I’m 70. I was told as long as I am within 6 months of my 70th birthday. I want to make sure just in case I get more due to being 70. Well that would be nice.
Ray F.
Hi Mary, Our system is set up to take applications up to three months in advance of the month in which you want your benefits to start. In your case, we suggest you call us as soon as you think you have attained your 40 credits and speak to a representative about applying. You can call us at 1-800-772-1213 Monday through Friday, from 7 a.m. to 7 p.m. Thanks!
Mary
Hello again Fernandez,
I know it sounds crazy but I only recently found out that I can claim a pension from the work I did in the UK. I had mistakenly thought that once you got citizenship in the States you couldn’t get it from the UK. How does that work presuming I apply in the UK for it. I have found out the US has an agreement with the UK, but how do they do it? Is it lumped with the US SS or will it be sent to me separately. In this small town where I live it appears that they have no idea how to go about it. Really! They couldn’t even find the correct UK gov website. So I looked it up myself. Can you enlighten me as to how the SS deal with this. It could apply to any alien from any country. Thank you in advance.
Ray F.
Hello again Mary ! The United States has bilateral Social Security agreements with 25 countries.
International Social Security agreements, often called “Totalization agreements,” help assure continuity of benefit protection for persons who have acquired Social Security credits under the system of the United States and the system of another country. These type of claims require special processing between your local office and our Office of International Operations.
For your security, we do not have access to your personal information, in your situation it’s best to continue working with your local U.S. Social Security office. Please see “Totalization Agreement with the United Kingdom” for more information. You can also read our publication: “How International Agreements Can Help You”. We hope this information helps!
Ron
My wife and I have looked at our pending retirement and have a few questions. My wife will turn 70 in January 2017, she plans to keep working until late in 2018. She has not started her SSI yet but we anticipate starting this when she turns 70, they would be about $2800/mo. As we are both still working are the SSI checks subject the “excess earnings” criteria and thus taxed as such or are they exempt given her age, I am almost 9 years younger if that is a factor? A separate but related question; in late 2018 when we both retire I will be 63. I will receive a state defined retirement benefit of $1900/mo, if I collect my SSI then is it subject to “excess earnings” based in part on the state defined income and/or other investments we can collect?
Lorenzo D.
Thanks for your questions Ron, and for communicating with us using our blog. Although you mentioned “SSI” in your message, we assume you are talking about Social Security retirement benefits and not “Supplemental Security Income (SSI).”
Your wife has already attained full retirement age, so she can apply for benefits at any time without having deductions made to her benefit amount because of earnings.
She can wait to start receiving her retirement benefits, but can only earn Delayed Retirement Credits up to age 70.
As far as your own situation, since you plan to begin your benefits before you reach your full retirement age, your benefits may be reduced due to your earnings if you continue to work. Please see our publication, How Work Affects Your Benefits. Your “state defined retirement benefit” will not count as earnings, but it may cause a reduction in your benefit due to the Windfall Elimination Provision.
If you each don’t already have one, you and your wife can create mySocialSecurity accounts to review estimates of your retirement benefits, earnings record, and the estimated Social Security and Medicare taxes you’ve paid.
For income tax-related questions, you will need to contact the IRS. Their toll free number is 1-800-829-1040. We hope this information helps!
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