Turning 62 unlocks eligibility for early Social Security retirement benefits (though reduced), access to retiree discounts (AARP, travel, parks), and prompts crucial financial/lifestyle planning for retirement, including considering health, hobbies, and how early benefits impact long-term security versus delaying for higher payments. It's a significant milestone for financial strategy and personal life choices, marking the start of potential lifestyle changes like part-time work, travel, or new hobbies, while also raising awareness about health and longevity.
At age 62, you can start receiving reduced Social Security retirement benefits, as it's the earliest eligibility age, but your monthly payment will be permanently lower than if you wait for your full retirement age (typically 67). Other benefits at 62 include potential eligibility for Disability Insurance (DI) or Supplemental Security Income (SSI) if you have a health issue. Health insurance options like Marketplace plans or spouse's plans become available, and you must be mindful of earnings limits if you continue working.
Since you can start claiming Social Security benefits at the age of 62, now is the time to evaluate your needs and think about when you want to start claiming.
To avoid delays due to processing time, SSA encourages workers to contact an SSA office 2-3 months before reaching age 62 (SSA 1997A, paragraph 1503), and workers may file applications before the first month in which they are entitled.
If you want to retire at 62, join the crowd — the thought of so much freedom can be intoxicating. Even though many retirement planning experts recommend waiting until the full retirement age of 67 for Social Security benefits, the average age to retire in America hovers around 62.
Drawbacks of Early Retirement
Claiming Social Security at age 62, the earliest eligibility age, reduces your monthly benefit by up to 30%, depending on your birth year, compared to waiting until your full retirement age (FRA), which is 67 for those born in 1960 or later, with smaller reductions for those born earlier. For someone born in 1960 or after, retiring exactly at 62 means about a 30% cut, while someone born in 1959 would see a 29.17% reduction, as the reduction lessens for each month you wait to claim.
Yes. You can start over in life when you're 60. A lot of people are doing just that. It's a megatrend.
You can apply for Social Security up to four months before you want your retirement benefits to start, with the earliest age being 62, meaning you can apply as soon as you're 61 and nine months old, though payments usually begin the month after you turn 62, so applying in March for a June birthday allows payments to start in July. The actual process involves choosing your start month on the Social Security website, and benefits are reduced for starting before your full retirement age.
The Social Security first year of retirement rule lets people exclude from Social Security's annual earned income limit any pre-retirement wages they earn in the calendar year they start receiving Social Security retirement checks. This helps new retirees avoid the penalty for exceeding the annual earned income limit.
Yes, you can often retire at 62 and start receiving some form of pension, but the amount depends on your specific plan, and for U.S. Social Security, it will be a permanently reduced amount; you'll get your full benefit by waiting until your full retirement age (FRA), which is 67 for most people today, but can be earlier (62) with reduced payments, or you can get more by waiting until age 70. State/Local government pensions have their own rules, often allowing early retirement at 62 with a reduction, or sometimes with no reduction if you have enough service time (e.g., 30 years), notes Quora users and the NY State Comptroller's office.
The 5 Stages of Retirement: Unlocking a Fulfilled Later Life
Many people don't regret being retired. They regret how they got there. “I wish I had saved earlier.” “I didn't think long-term care would matter.”
The primary disadvantage of applying for Social Security at age 62 is a permanently reduced monthly benefit, potentially up to 30% less than what you'd get at your full retirement age (FRA) (around 67 for most), meaning a smaller income stream for the rest of your life and potentially lower survivor benefits for your spouse. You'll also face earnings limits, where working can further reduce your payments until you reach FRA, and you'll have less time to let benefits grow, missing out on delayed retirement credits.
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.
Yes, you can get Social Security benefits even if you never worked, primarily through Spousal/Divorcee benefits, Survivor benefits, or the needs-based Supplemental Security Income (SSI) program, none of which require a work history, though standard retirement/disability (SSDI) does. You can get up to 50% of a working spouse's benefit (spousal), or potentially 100% as a widow/widower (survivor). SSI provides aid for aged, blind, or disabled people with limited income/resources, regardless of work.
The top ten financial mistakes most people make after retirement are:
Finances aren't the only factor in knowing if you're ready to retire. You must also decide if you're emotionally prepared to stop working. “For many people, their job is their identity,” says Erenberger. “You have to determine if you're emotionally ready to give this up.”
Generally speaking, the golden years begin at age 65 and last until age 80 and beyond. However, some experts question whether “golden years” still belongs in our vocabulary because the time span and definition of retirement have changed over the past half-century. “Older Americans live longer now than they did in 1960.