Social Security retirement benefits are available to you as early as age 62, but the amount you receive will be less than your entire retirement benefit amount.
We will reduce your benefits based on the number of months you receive benefits before you reach your full retirement age if you begin receiving them before that time.
Your benefit amount will be higher if you wait until you are 70 years old to begin receiving benefits because you will accrue delayed retirement credits for each month that you wait to file. After you turn 70, there is no further benefit increase, even if you keep delaying receiving benefits.
Navigating your retirement journey can be a complex process, especially when it comes to understanding the intricacies of Social Security benefits. One of the most common questions individuals have is whether they can retire at 60 and still receive Social Security benefits. The answer is yes, you can start receiving benefits at 60, but there are certain factors to consider that will impact the amount you receive.
Eligibility for Social Security Retirement Benefits at 60
To be eligible for Social Security retirement benefits at 60, you must meet the following criteria:
- You must be at least 62 years old.
- You must have worked and paid Social Security taxes for at least 10 years.
Impact of Early Retirement on Benefits
While you can start receiving benefits at 60, it’s important to understand that doing so will result in a reduced benefit amount compared to waiting until your full retirement age. Your full retirement age depends on your birth year, but for those born in 1960 or later, it is 67.
Calculating Your Reduced Benefit Amount
The Social Security Administration (SSA) uses a formula to calculate your reduced benefit amount. For each month you claim benefits before your full retirement age, your benefit amount is reduced by a specific percentage. This reduction can significantly impact your overall retirement income.
Example:
Let’s say your full retirement age is 67 and you decide to retire at 60. Your benefit amount would be reduced by 30% for each month you claim benefits before your full retirement age. This means your monthly benefit would be 70% of what you would receive if you waited until age 67.
Maximizing Your Social Security Benefits
If you are considering retiring at 60, there are steps you can take to maximize your Social Security benefits:
- Work for at least 35 years: The SSA uses your highest 35 years of earnings to calculate your benefit amount. Working for a longer period can increase your average earnings and, consequently, your benefit amount.
- Delay claiming benefits: As mentioned earlier, delaying claiming benefits until your full retirement age or even later can significantly increase your monthly benefit amount.
- Consider spousal benefits: If you are married, you may be eligible for spousal benefits based on your spouse’s work record. This can supplement your own retirement income.
Additional Considerations
- Health insurance: Medicare eligibility typically begins at age 65. If you retire before 65, you will need to find alternative health insurance coverage.
- Retirement savings: Social Security benefits are not meant to be your sole source of retirement income. It’s crucial to have additional savings and investments to supplement your Social Security income.
Retiring at 60 and receiving Social Security benefits is possible, but it’s essential to understand the implications of early retirement on your benefit amount. Carefully consider the factors mentioned above and consult with a financial advisor to create a comprehensive retirement plan that meets your individual needs and goals.
Examples of the percentage of your full retirement benefit amount that you and your spouse would receive from age 62 to your full retirement age are shown in the chart below.
Social Security retirement benefits can begin as early as age 62, but the amount you receive will be less than the total amount of retirement benefits.
Working While Receiving Benefits
After you begin receiving benefits, you might work, which could result in a future benefit increase for you. If your yearly earnings exceed the cap, we might withhold part of your benefits. People who retire in the middle of the year occasionally have incomes that exceed the annual earnings cap. However:
- One year’s earnings are subject to a special rule that we apply, usually the first year you start receiving benefits. This means that, regardless of your yearly earnings, we are unable to withhold benefits for any month in which we deem you to be retired.
- We will recalculate your benefit amount after you reach full retirement age to account for any months in which your earnings were too high to qualify for benefits.
Payment for Social Security benefits occurs the month following the due date.
Your first benefit check will arrive in June if you indicate that you would like your benefits to begin in May. (You must be eligible for benefits in April AND notify us that month if you would like to start receiving benefits in order to receive your first check in May.) ).
Can I Retire at 60 with $500,000 & Claim Social Security Benefits Early?
FAQ
What happens to my Social Security if I retire at 60?
Can I legally retire at 60?
What is the minimum age to retire on Social Security?
How much can you earn while on Social Security at age 60?
Should I retire at 60?
To retire at age 60, you need to evaluate your current financial situation and determine if you have enough saved. Retiring at 60 means you will need to wait two more years before you can start collecting Social Security benefits; these benefits can be a big boost to your income.
How much benefits do I get if I reach full retirement age?
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age. If you will reach full retirement age in 2023, the limit on your earnings for the months before full retirement age is $56,520.
How does age 62 affect retirement benefits?
At Age 62 3. The retirement benefit is reduced by 4. The spouse’s benefit is reduced by 5. If you were born on January 1 st, you should refer to the previous year. If you were born on the 1 st of the month, we figure your benefit (and your full retirement age) as if your birthday was in the previous month.
How much does a 66 year old retire a month?
Say that your monthly benefit at a full retirement age of 66 is $1,000. Starting retirement benefits early at 62 or late at 70 can mean the difference between $750 and $1,320 a month. The graph on this page gives you an example. Your Social Security Statement provides your personalized retirement benefit estimates.