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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Larry
I will turn 67 on February 9, 2017 I want to start my benefits after that date. I am trying to figgure out do I put in the application in October or November of 2016 or does it make a difference? When should I, what date, should I file for my Social Security Benefits?
Evelyn N.
someone told me yesterday that I will not receive my SS any more when I reach the age of 90, is this correct?
J.Y.
Hi Evelyn, thank you for your question. Your Retirement Benefits will not stop until you are deceased.
scalrtn
My question concerns whether I’d receive a larger distribution if I begin to receive it on a later vs. earlier DAY within a given MONTH…For example, I’m already aware that the monthly distribution would be slightly larger if I began to receive SS payments in October rather than April of a given year for which I was eligible to receive benefits…but is there any advantage to begin taking distributions on the 30th or 31st day of a given month vs. the 1st day of the same month? Or would the distribution be the same in dollars and cents for ALL days within the same month? Thank you.
..
Hello Scalrtn. Social Security benefit amounts are not determined based on days of a month. In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before your normal retirement age up to 36 months. Delayed retirement credits are given for each month you delay filing beyond your normal retirement age up to age 70. The annual delayed retirement credit percentage varies from 3% to 8% by year of birth but the increase is monthly. You can use the Early or Late Retirement Calculator to determine the benefit percentage.
elizabeth l.
question-I currently am 58 years old. If I stop working at age 60 or 62 and delay collecting social security until age 65, how will that effect the amount of social security I get. Does the amount change since I will not be putting into social security after age 60. what if I continue working until age 62 and stop and wait until I get to 65 to collect? I do have retirement from my job and a 401 that I can use in the meantime.
R.F.
Hi Elizabeth, you may find our Early or Late Retirement Calculator helpful. For retirement benefits, we use the individual’s highest 35 years of earnings to compute monthly benefit amount. You can start receiving retirement benefits as early as age 62, but if you decide to get benefits before your full retirement age, they will be reduced. In the other hand, starting to receive benefits after normal retirement age may result in larger benefits. We have a variety of other benefit-calculators to help you plan for the future. Which calculator you choose depends on what you want to do. To help you plan for the future, you can use our Retirement Planner and create a my Social Security account to verify your earnings; get your Social Security Statement, and much more. Happy planning!
Texconsin
Since you haven’t updated the Mac app for El Capitan (hopefully when you DO update, it won’t be outdated for the upcoming OS Sierra) and I haven’t installed the Windows version, I created an Excel worksheet using my top 35 years and your tiered calculation, coming within about 10 buck a month of what My Social Security estimates. Two things…it would be nice if we could download our earnings records in .csv, .xls and/or .xlsx, instead of .xml (which is absolutely USELESS to the average user) and, although it makes no difference with my top 35 years, why don’t my earning records show earnings for 1970? I turned 16 in April 1970 and worked the summer at McDonald’s, making nearly $1,000. One never forgets their first job and how much they made.
R.F.
To make corrections on your earnings record, you will need to contact your local Social Security office.
Cinthia
If you retire at age 62 and take the discounted monthly rate. At age 66 (my fully retirement age), does your monthly increase to the fully retirement age? Or do you stay locked at the age 62 rate for the rest of your social security life.
R.F.
Good question Cinthia. The reduction factors are permanently applied to all benefits an individual may qualify for once they opt to start benefits at age 62 or at any time prior to their full retirement age.
Stanley
I am planning on filing for SS on my 67th birthday. My wife began collecting at 63. I am eligible for a larger payment than she is because I had higher earnings. Will her monthly benefit increase when I file?
Glenda
If the amount to draw at 66 is $2500 a month, and you decide to draw at 65, what would the monthly amount be?
R.F.
Hi Glenda. When you use our Retirement Estimator you can get estimates based on your actual Social Security earnings. Or you can use our online calculator where you can test various scenarios and retirement ages to estimate your benefits. You can also create a my Social Security 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.
Stu S.
Turning 66 tomorrow. The way I understand it is if I want until age 67, i would receive 8% more. So (considering that I could have applied 3 months prior to my birthday), would receive 3/12 of 8% (or 2%) more if I apply for SS tomorrow. What I am really asking is when the numbers in your table increase month by month or do they suddenly jump every year.
R.F.
Happy Birthday Mr. Schwartz! Social Security retirement benefits are increased by a certain percentage (depending on date of birth) if you delay your retirement beyond your full retirement age (currently age 66). To see the yearly or monthly rate increase based on your year of birth, visit our Retirement Planner: Delayed Retirement Credits. When you are ready, you can complete your application for retirement benefits online. We hope this information helps
Howard
If my wife files for her own benefit at FRA and I wait until 70 to file for mine, can she switch to the spousal benefit without any reduction?
R.F.
Thank you for your question Howard. Reduction factors are permanently applied to all of the benefits the person may qualify for, if they choose to begin receiving benefits at age 62 or prior to their full retirement age. The spouse’s benefit your wife can receive on your record cannot exceed one-half of your full retirement amount, if she applies at her full retirement age. The benefits for your spouse do not include any delayed retirement credits you may receive. However, she can earn delayed retirement credits automatically if she delays getting benefits on her own record up until age 70. Please visit our Retirement Planner: Benefits For Your Spouse for more information.