Many people who retire could end up depending on their Social Security benefits more than they expected.
It is important to know that the age at which you choose to retire plays a large role in what you will receive each month.
The amount you get is based on a number of things.
The salary you earned in your top 35 paid years is used to determine how much you will receive.
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After that, the age at which you choose to retire affects what you receive.
In order to receive your full monthly retirement benefits, you must retire at your full retirement age.
The earlier you retire, the less money you will see each month.
Some people do not know the age of their full retirement because it depends on the year of their birth.
The earliest you can apply for benefits is at age 62 and the later it will continue to increase before you apply is age 70.
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The year of your birth determines the age of your full retirement
- 1943 to 1954: 66 years
- 1955: 66 years and 2 months
- 1957: 66 years and 6 months
- 1958: 66 years and 8 months
- 1959: 66 years and 10 months
- 1960 and after: 67 years
Each month that you choose to claim benefits before reaching full retirement age, benefits decrease.
If you apply for retirement at 62, the earliest age you are allowed, you’ll see up to 30% less per month than if you had retired at 67.
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If you wait until you reach full retirement age, you can increase your benefits up to 24% within 70 years.
Once you turn 70, there is no benefit to waiting around and your monthly payment will not increase any further.
What age is the best age to decide to retire at
There are reasons why it is better for people to retire before full retirement age or wait until after it is over.
Your health is a factor. If you’re not feeling well and don’t know that turning 70 is possible, it may be better to retire early.
If you already have a lot of retirement savings, you may be able to retire earlier knowing you have the money to rely on.
The best thing to do is to keep these numbers in mind until you reach retirement age, so that you can make the best choice for you and your spouse.