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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Kim
If I retire from my career at age 62, and stop working altogether, but do not claim my social security benefits at that time, what percent does my social security benefit increase with each passing year to the full retirement age of 66? I would be no longer contributing, so the social security statement estimate of my retirement benefits at full retirement age (based upon my current income) would not be correct.
R.F.
Hi Kim. Our Retirement Estimator gives estimates based on your actual Social Security earnings record. Another great source of information for you: our Retirement Planner. Thanks for using our blog!
Bel
If my mom sells her home would her social security (retirement) be discontinue, she is 81 years old.
Bel
Thank you for your help.
R.F.
Thank you for your question, Bel. Your mother’s benefits are paid based on her previous years of work and her contributions to the Social Security program. Other income or resources will not affect her retirement benefits.
Benefits paid under the Supplemental Security Income (SSI) program, on the other hand, are subject to other income and resources.
Victor
Are there any other requirements to be met other than 40 credits (10 yrs of work period) for a USA citizen ? I have worked for 22 yrs, paying into the SS system (most of the time I’ve reached the maximum amount to be paid every year). Now retired at age 46 and living on my savings. I know that 35 yrs of SS paid is used for calculating benefits + claiming benefits @ 62 vs 66 or 67 vs 70. Question is – any other requirement such as – having to work during my 50’s (or during the last 5 yrs), in order to claim benefit at 62 yrs (even though it ay be reduced) ?
R.F.
Hi Victor. 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. When you apply for retirement benefits, we base your benefit payment on your highest 35 years of earnings and your age when you start receiving benefits. Higher lifetime earnings result in higher benefits. If there were some years you didn’t work or had low earnings, your benefit amount may be lower than if you had worked steadily. See our Retirement Planning page for more information.
To qualify for Disability Benefits, you must have worked and earned the required number of credits within a certain period ending with the time you become disabled. Generally, you need to have worked for five of the last ten years before you become disabled. Credits are the “building blocks” we use to find out whether you have the minimum amount of covered work to qualify for each type of Social Security benefits.
Victor
Thank you Ray. Bottom line – As long as 40 quarter credits have been earned, there is no other requirement such as needing to work in the last 5 years before 62, etc to claim (reduced due to the 35 yrs avg being reduced) benefits – right ? I’m not talking about disability benefits, etc ; just regular SS benefits, albeit at a lower level – since 12 or 13 yrs of 0 income will bring down my 35 yrs avg ??
BILL
I medically retired and am on $1600 a month SS at 62 I’m receiving VA total disability for Parkinson’s that has just started this month. My wife of 45yrs wants to know what effect her retiring at 65 instead of 66 will do to her check? Will she collect 7% less at 65 than at 66 and because I’m already on SS retirement what does this do to her SS ck? INPUT PLEASE
R.F.
Hi Bill, if your wife is under full retirement age and 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.
If she begins receiving benefits prior to attaining her full retirement age, the amount will be permanently reduced by a percentage based on the number of months up to her full retirement age. Use our “Benefits By Year Of Birth Chart” to find out how much your and your wife’s benefit can be reduced prior to full retirement age.
joanne
My question is.. I took social security at age 64 because I had retired. I was told since I wasn’t earning any more wages my benefit amount would stay the same even if I waited to 66 to retire. Now a friend said she was told even though she is no longer working that the amount would go up. Who’s right?
R.F.
Hi Joanne, the benefit amount that you’re receiving, is established at the time you applied for retirement benefits. It is based on the amount of your average lifetime earnings, and your age at the time you applied. Generally there are two ways that your benefits can increase: If you continue to work while receiving retirement (or survivors) benefits, your monthly benefit amount could increase. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. The other way your monthly benefit amount could increase is based on the annual Cost-of-Living Adjustment (COLA).
edf
im 62, already retired from work, have 37+ years FT work history but will wait to claim SS when i’m 66-70. will my benefit increase by the stated 8% or so per year. thank you for any comment.
R.F.
Thank you for your question. Social Security retirement benefits are increased by a certain percentage (depending on your date of birth) if you delay your retirement beyond your full retirement age. If you delay your retirement benefits until after your full retirement age, you also may be eligible for delayed retirement credits. The yearly rate of increase for those born in 1943 or later is 8%. If you decide to delay your retirement, remember to sign up for Medicare at age 65.
David M.
Trying to reckon the difference b/w taking it next April at 69 or waiting till April of ’17.
Lines crossing above age 83 or whatever it is exactly look like a pretty modest increase out to one’s late 90s. Thoughts or comments?
R.F.
Thanks for your question David. 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.
Our system is set up to take applications three months in advance, and when you’re ready, you can apply for your benefits online. 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!
Nishi
I plan on taking SS at age 62. I’ll be lucky if I make to age 72 so it makes no sense to wait. Luckily, I’ve saved up enough to “retire” now so I can enjoy at least 20 years before I kick the bucket.
Wanda
I will be 66 in August 2016. Can I start drawing full retirement in January
Mary
I am 64 and plan on receiving Social Security benefits soon. If my benefit start date is December 2015 and will not receive payment until January 2016 will my wages and bonus for December which would be over $1310.00 cause me to have a reduced check in January?
If I wait until January 2016 to apply and my first check would be February could I work for 3 months and make over $1310.00 per month but less than $15720 per year (for example $4000.00 per month) would that affect my monthly payment?
R.F.
Great question Mary. In 2015, at age 64, the monthly earnings allowed are $1,310 or less. If you make more than $1,310 in December, you cannot receive a payment in January. A person younger than full retirement age for the entire year will be considered retired if he or she earns $1,310 or less in a month. We will apply the annual limit amount beginning in January 2016.
Please read our publication: “How Work Affects Your Benefits” for more information.