If I decide to retire before my normal retirement age, should I file for Social Security early at the reduced rate? What is the reduction?
For individuals born in 1937 and prior, normal retirement (the age at which recipients are entitled to 100% of his or her SSI benefits) is 65 years of age. For each month you choose to collect social security income before the “normal” retirement age, your payment is reduced by .5556%. The earliest you can collect is age 62 and the benefit would be 80% of your “normal” SSI. For individuals born after 1937 the reduced benefit is 70% at age 62, and the normal retirement age increases from 65 and 2 months to 67 years of age, depending on the year of birth.
Related Questions
- I understand that early retirement is age 55 with 5 years of service, however what if I would like to retire at age 62. Can I do that or can I only retire at ages 55 or 65?
- If I decide to retire before my normal retirement age, should I file for Social Security early at the reduced rate? What is the reduction?
- I want to retire before age 59. How do I avoid the 10% early distribution penalty on retirement payments from my 401k?
