The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.
41-45 years old is the optimum retirement age range because you've put in your dues and still have enough energy to do something new.
The earliest you can start Social Security benefits is age 62. However, just because you can start benefits does not mean that you should. Your monthly Social Security paycheck increases significantly for every month and year you delay starting, up until your full retirement age (around age 67).
Age 62 (Early Retirement)
And, for some retirees, this is the best choice. If you have few other sources of income, for example, and Social Security will put food on the table, then you might have little choice than to claim early. Others choose age 62 because they want to get checks for as long as possible.
If you want to retire in your 50s, it is perfectly legal. It's important to remember that 55 is not the average age for retirement—Social Security's normal retirement age is 66 and four months — or 67. The higher age means you have to wait until then to start receiving Social Security benefits.
When they looked at the sample of 2,956 people who had begun participating in the study in 1992 and retired by 2010, the researchers found that the majority had retired around age 65. But a statistical analysis showed that when people retired at age 66 instead, their mortality rates dropped by 11%.
But if you can supplement your retirement income with other savings or sources of income, then $6,000 a month could be a good starting point for a comfortable retirement.
The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.
Live it up.
As you undoubtedly already are well aware, most financial planners recommend that—so long as you can afford to do so—you should wait until age 70 to begin receiving your Social Security benefits. Your monthly payment in such an event will be 32% higher than if you begin receiving benefits at age 66.
At age 66: $3,240. At age 70: $4,194.
Yes, you can! The average monthly Social Security Income check-in 2021 is $1,543 per person. In the tables below, we'll use an annuity with a lifetime income rider coupled with SSI to give you a better idea of the income you could receive from $500,000 in savings.
That adds up to $2,096.48 as a monthly benefit if you retire at full retirement age. Put another way, Social Security will replace about 42% of your past $60,000 salary. That's a lot better than the roughly 26% figure for those making $120,000 per year.
If you're below your full retirement age but are age 62 or older, you can work and receive Social Security benefits at the same time. If you achieved full retirement age in 2021, you could have earned up to $18,240 in 2020 and still received your normal benefit amount without any penalty.
A 65-year-old can expect to live another 19 to 21.5 years, on average, according to the Social Security Administration. What's more, the government agency says a third of 65-year-olds will hit age 90, and 1 in 7 will live beyond age 95. Those numbers show a significant improvement in life expectancy over time.
From 1983 to 2000, the rules changed to gradually increase the Social Security full retirement age to 67. Currently, the Social Security full retirement age is 66 for those born between 1943 and 1959, and 67 for anyone born 1960 or later. And the Social Security age requirement is not the only thing that's changed.
SSA limits the value of resources you own to no more than $2,000. The resource limit for a couple is only slightly more at $3,000. Resources are any assets that can be converted into cash, including bank accounts.
When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment.
If you retire at 62, you'll need to make sure you can afford health insurance until age 65 when your Medicare benefits begin. 5 (If you have a disability, you can qualify early.) With the Affordable Care Act, you are guaranteed to get coverage even if you have a pre-existing condition.
Key takeaways. If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8% increase in your benefit.
How much you can expect to get from Social Security if you make $75,000 a year. The first monthly Social Security check was cashed in 1940 for a grand total of about $23. Fast forward to 2019, and the average retired worker gets almost $1,500 a month from Social Security.
Average Retirement Expenses by Category. According to the Bureau of Labor Statistics, an American household headed by someone aged 65 and older spent an average of $48,791 per year, or $4,065.95 per month, between 2016 and 2020.
You feel like work is “in the way”
You might want to start a business, travel more, or spend time with your family. Feeling like work is getting in the way of your personal goals is a clear emotional signal that you're ready to retire. It's a sign that your priorities and values are beginning to shift.
That means that even if you're not one of those lucky few who have $1 million or more socked away, you can still retire well, so long as you keep your monthly budget under $3,000 a month.
“Continuing to work for as long as possible will absolutely give you more choices and financial freedom in retirement,” Duran explains. “Working for a longer period of time not only gives you more savings and builds your safety net, but it also provides health benefits which you don't have to pay for personally.”