Americans all over the country claim Social Security benefits each month, which is appealing if you’re looking to retire as soon as possible.
It’s important to remember that the age you choose to retire has a direct impact on your benefits.
The earliest you can retire is age 62, but doing so could have major consequences.
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Collecting Social Security at age 62
You’re entitled to collect Social Security benefits at the age of 62. Doing so will lower your benefits for life.
You only get your full benefits if you can wait until your full retirement age which is between 66 and 67.
Your benefits are based on a history of 35 working years as well.
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Every month before you reach your FRA you will see your benefits lowered.
For example, if your FRA is 66 and you retire at 62, you lose 25% of your monthly benefits.
If your FRA is 67 and you retire at 62, you can lose 30%.
If your age is between 66 and 67, you’ll lose between 25% and 30%.
When you should claim benefits at age 62
In some situations, it may make the most sense to claim benefits at age 62.
If you’re in poor health and do not expect to live much longer, it’s probably best to claim the benefits as early as you can.
When you have a multi-million dollar savings, you are probably safe to retire early because you’re covered financially.
If you’re in good health, it may be worth it to wait as long as you can for the biggest benefit possible.
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