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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Vinny P.
My full retirement is 66 (which I’ll reach in 5 months). My benefit at age 66 is $2657. If I continue working until age 68 and don’t begin receiving benefits while still earning about the same salary I earn now ($119,000), how much will my new benefit be at age 68?
R.F.
Thank you for your question Mr. Vinny. You can use one of our benefit Calculators. Which calculator you choose depends on what you want do. In your case, you may want to use our Early or Late Retirement Calculator. Thanks!
dave b.
I’m about to turn 65 years old and Will be Receiving Social Security Well I’ll make up the difference between 65 and 66 when I turn 66 years old
D.B.
Thanks for your question, Dave B. If you choose to receive Social Security retirement benefits before you reach your full retirement age, your benefits will be permanently reduced. The amount you receive when you first receive benefits sets the base for the benefits you will get for the rest of your life. Click here for more information.
Nora C.
I decide to keep working called social security three months ago but they keep sending the ssecurity check. What do I do? It was two months before I realized they were sending the checks. Do I owe these checks back?
R.F.
Hi Nora. 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, we will reduce your benefit. To learn more, visit our Frequently Asked Questions web page or read our publication “How Work Affects Your Benefits”. In the other hand, if you started receiving Social Security benefits less than 12 months ago and you changed your mind about when they should start, you may be able to withdraw your Social Security claim and re-apply at a future date. You must repay all the benefits you received. To learn more, visit our “Retirement Planner: Suspending Benefit Payments”. For further assistance, 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, or contact your local Social Security office directly.
Reg S.
What happens if, in order to maximize SS benefits, one delays receipt of their social security benefit until age 70. Then, it is decided through “means-testing” that they don’t qualify for social security, because they have too much other income. Will they forfeit what they could have drawn up until the point that means-testing was implemented?
Krissi S.
I am trying to decide to retire at the age of 64. I viewed my SS page which let’s say this as an example:
Age 63: 1229.00 per month
Age 66: 1447.00 per month
However, when I went to estimated calculator it gives a different amount of 200.00 on the 63 yoa retirement..for example.
K
J.Y.
Thanks for your question, Krissi. There are a lot of factors that go into deciding when to retire. You can delay your retirement and receive Delayed Retirement Credits to increase your benefit. But, you can retire at any time after you reach age 62 – depending on your situation. Visit our Retirement Planning page to estimate your retirement benefits and determine the best retirement age for you. In addition, we have a variety of other calculators to help you plan for the future. Which calculator you choose depends on what you want to do. We suggest that you create a my Social Security account. With your personal my Social Security account, you can verify your earnings, get your Social Security Statement, and much more. Happy planning!
Krissi S.
I am not seeing my just posted comment?
Jhon
I am a disabled person and live on SSI and am not married. I had only earned around 10 points. my question is that is SSI the only benefit I am entitled to?
R.F.
Current law requires that an individual earns 40 credits to qualify for Social Security benefits.
Individuals receiving SSI benefits may also be eligible to receive social services from the state in which they live. These services include Medicaid, free meals, housekeeping help, transportation or help with other problems. You can get information about services in your area from your state or local social services or welfare office. Or you can visit the U. S. Department of Health and Human Services (HHS) web page for more information. We hope this information helps!
June
I am eligible to draw social security. I am also eligible to draw from a retirement plan at my work. If I decide to draw my social security at 65, but continue working at the “non social security job”, can I make as much as want(since I am not paying into social security at this time).