Can I collect Social Security at 62 and a half?
Can I collect Social Security at 62 and a half?
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You can get Social Security retirement benefits as early as age 62. However, we’ll reduce your benefit if you retire before your full retirement age. For example, if you turn age 62 in 2021, your benefit would be about 29.2 percent lower than it would be at your full retirement age of 66 and 10 months.
That will reduced both your average earnings and your resulting benefit rate. And, if you start drawing your benefits at age 62, your monthly rate will be reduced for age. That would cause your benefit rate to be reduced to roughly 70% of the amount you’d receive if you waited until full retirement age (FRA) to start drawing.
Is it better to retire at 62 or 67?
However, just because you can start benefits does not mean that you should. Your monthly Social Security paycheck increases significantly for every month and year you delay starting, up until your full retirement age (around age 67). Waiting to start Social Security can mean up to $100,000 in additional money over your lifetime.
When to apply for Social Security to start benefits at 62?
There is a one-month lag in the benefit payment. If your birthday is Oct. 1 or 2, you qualify for an October benefit and it will be paid in November. If you were born later in October, your first benefit month is November and you will be paid in December.
How are Social Security benefits reduced when you reach full retirement age?
If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age. To find out how much your benefit will be reduced if you begin receiving benefits from age 62 up to your full retirement age, use the chart below and select your year of birth.
What is the full retirement age for Social Security?
- An Older Social Security Full Retirement Age. The full retirement age used to be 65 for those born in 1937 or earlier.
- A Bigger Reduction If You Claim Social Security Early.
- Less of a Benefit for Delaying Claiming Social Security.
- The Medicare Eligibility Age Remains the Same.
- Carefully Determine the Optimal Age to Start Social Security.
Why do people retire at 62?
Reason #5: Retire at 62 if You Want to Learn New Things If you devoted your education and life to a focused career, there might come a point when you want to try something completely new. Taking retirement at 62 means you have time to pursue education in a different direction, and still have time to use and enjoy it.
What age is considered early for retirement?
Social Security Early Retirement Age. The Social Security Administration defines early retirement as age 62. If you begin taking Social Security benefits at age 62, you will receive a reduced benefit.
Do Social Security benefits increase if you continue to work?
Continuing to work can also increase your overall benefit amount. Social Security looks at your highest 35 years of annual earnings to compute your benefit. If the years you are working and receiving benefits are among your highest paid, this will increase your overall benefit.