Yes, you can retire at 62 and get a state pension (Social Security), but your monthly payment will be permanently reduced compared to waiting for your Full Retirement Age (FRA), which is 67 for those born in 1960 or later, and you'll need to meet eligibility requirements, typically 40 work credits (about 10 years of work). You'll get a lower, but consistent, monthly benefit at 62, while waiting for your FRA (or even up to age 70) yields a higher, permanent monthly payment.
You can receive Social Security retirement benefits as early as age 62. However, we'll reduce your benefits if you start receiving them before your full retirement age. For example, if you turn age 62 in 2026, your benefit would be about 30% lower than it would be at your full retirement age of 67.
You permanently reduce your benefit by 30% by taking your Social Security at age 62 rather than waiting to age 67. By waiting from age 67 to 70 you gain another 24%. These are inflation adjusted returns. If you have any IRA money, use that during your early retirement years.
To access your State Pension, you need to: Be at least 66 years old (which will rise to 67 between 2026 and 2028, and eventually 68) Have made at least ten years' worth of National Insurance contributions.
The full rate of new State Pension is £230.25 a week. Your amount could be different depending on: if you were contracted out before 2016. the number of National Insurance qualifying years you have.
Normal Retirement (at age 65): Your annual benefit equals the total pension credits accrued on your retirement date. Early Retirement (age 55 to 64): If you retire any time after age 55 but before age 65, your monthly benefit is lower because it is likely that you will receive benefits for a longer time.
If you retire at 62 and keep working, you can collect Social Security but your benefits will be reduced by the Earnings Test until you reach your full retirement age (FRA), with $1 withheld for every $2 earned over the annual limit (e.g., $24,480 in 2026). Once you hit FRA, the limit disappears, your benefits increase to account for withheld amounts, and working further can boost future benefits by replacing lower earnings years in the SSA calculation. You'll also pay taxes on your benefits and potentially fall into higher tax brackets due to combined income.
While you currently have to wait until you reach 66 to get your State Pension, you can start drawing your workplace and private pensions from the age of 55 (increasing to 57 from April 2028) – typically recognised as early retirement age.
Yes, you can generally collect a pension and Social Security at the same time, thanks to the recent Social Security Fairness Act (2024/2025) that eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), meaning a non-covered public pension won't reduce your full Social Security benefit anymore. You'll receive your pension (from government or private work not paying Social Security tax) and your Social Security benefit (from work where you did pay taxes) as separate payments, with planning crucial to maximize both, especially waiting on Social Security to earn higher amounts.
Types Of Health Insurance For Early Retirees
The $1,000 a month rule is a retirement guideline suggesting you need about $240,000 saved for every $1,000 per month in desired income, based on a 5% annual withdrawal rate (5% of $240k is $12k/year, or $1k/month). It's a simple way to set savings goals, but it doesn't account for inflation, taxes, or other income like Social Security, so it's best used as a starting point, not a complete plan.
People retire at 62, the earliest age for Social Security, to gain freedom, pursue passions, simplify life, or because of health issues or job loss, but it means accepting permanently reduced Social Security benefits and needing a solid financial plan to cover a potentially long retirement and the gap before Medicare eligibility at 65. It's a strategic choice balancing immediate lifestyle benefits (more time for hobbies, family, travel) with financial trade-offs, often involving lower monthly Social Security checks.
You can get Social Security retirement or survivors benefits and work at the same time. But, if you're younger than full retirement age, and earn more than certain amounts, your benefits will be reduced. The amount that your benefits are reduced, however, isn't lost.
When can I take money out of my pension? You can usually only take money out of a workplace or personal pension once you're 55 or older (rising to 57 from April 2028). You can't start claiming your State Pension before you reach State Pension age. That's 66 right now, rising to 67 and then finally to 68 by 2028.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
Early retirement and State Pension
You'll have to wait to claim your state pension if you retire before you reach that age. You may receive less when you reach State Pension age than if you'd continued working. This is because you get a State Pension by building up enough 'qualifying years'.
The "pension 5-year rule" refers to different IRS rules for retirement accounts (like Roth IRAs needing 5 years for tax-free earnings), beneficiary rules (requiring heirs to empty inherited accounts within 5 years), and specific employment pensions (like Federal or Congressional plans requiring 5 years of service for vesting or benefits). It can also relate to UK pension rules for overseas transfers (QROPS) or breaks in service for public sector workers, preventing tax avoidance or loss of benefits.
Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some pension benefits grow with inflation. Other pension benefits can be passed on to a spouse or dependent. But pensions aren't the only financial route to guaranteed lifetime income after you retire.