Age Matters - Social Security Retirement

Your age at retirement has a substantial impact on the amount of Social Security retirement money you can collect.  If you were born between 1943 and 1954, your full retirement age is 66 years old.  If you retire at this age, you will receive the full benefit to which your work history entitles you.  You have the option of choosing early retirement as early as age 62.  Early retirement means a reduction in your monthly benefit amount for the rest of your life (unless you are disabled).  Retiring at 62 may result in a full 30% cut in your retirement stipend.  The lower sum (not including cost of living raises) will be fixed for the duration of your life.  It does not go up when you reach full retirement age.  Of course, you may decide to wait another year or two and retire at 63 or 64.  The Social Security Administration will calculate the number of months remaining before you reach full retirement age and reduce your payment by a percentage per month.  Again, this modified sum will be your permanent retirement stipend.

If you defer retirement until age 70, you can earn delayed retirement credits. You must be paying Social Security insurance after age 66, however, to get these credits.  That is, you must continue to work and pay into the program after reaching full retirement age.  In short, the longer you wait to retire, the better your monthly payment will be.  You should talk to an estate planning attorney for advice on how best to arrange your retirement schedule.

Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.