What percentage do you lose if you take Social Security at 62?

Asked by: Herminio Blanda  |  Last update: March 19, 2024
Score: 4.4/5 (28 votes)

If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent.

What is the disadvantage of taking Social Security at 62?

Depending on what someone's retirement age is, the decision to collect Social Security early could result in a monthly reduction of about 20 to 30 percent of what they would have gotten if they waited until full retirement age.

Why retiring at 62 is a good idea?

Filing for Social Security at age 62 could also end up making sense financially if you're worried you won't end up living a very long life. While you'll shrink your benefits on a monthly basis, by getting to collect that money sooner, you might end up with a higher amount of lifetime benefits.

Is it worth drawing Social Security at 62?

There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit will be reduced. Each person's situation is different.

What is the highest Social Security check at age 62?

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.

How much your Social Security benefits will be if you make $30,000, $35,000 or $40,000

45 related questions found

Can I draw Social Security at 62 and still work full time?

You can work while you receive Social Security retirement or survivors benefits. When you do, it could mean a higher benefit for you and your family. Each year, we review the records of all Social Security beneficiaries who have wages reported for the previous year.

Is it better to take Social Security at 62 or 67?

You may be eligible to collect Social Security as early as 62, but waiting until age 70 yields greater benefits for most people.

What are the rules for retiring at 62?

You can receive Social Security retirement benefits as early as age 62. However, we'll reduce your benefit if you start receiving benefits before your full retirement age. For example, if you turn age 62 in 2024, your benefit would be about 30% lower than it would be at your full retirement age of 67.

How do I get the $16728 Social Security bonus?

Beneficiaries are currently searching for information on How Do I Receive the $16728 Social Security Bonus? Retirees can't actually receive any kind of “bonus.” Your lifetime earnings are the basis for a calculation that the Social Security Administration (SSA) uses to calculate how much benefits you will receive.

What is the 5 year rule for Social Security?

The Social Security disability five-year rule allows people to skip a required waiting period for receiving disability benefits if they had previously received disability benefits, stopped collecting those benefits and then became unable to work again within five years.

At what age is Social Security no longer taxed?

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

What is the $1000 a month rule for retirement?

One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.

Can my wife take Social Security at 62 and then switch to spousal benefit?

Whether you can make this switch is determined by whether your spouse is already receiving benefits. If your spouse is not receiving any retirement benefits yet, then you could technically take your regular Social Security benefit as early as age 62.

Can I collect my Social Security at 62 and switch to survivor benefits later?

Can I Collect My Social Security Benefit At Age 62 And Then Switch To Surviving Spousal Benefits At Age 67? Hi. Yes, although you couldn't actually switch from your own benefits to survivor benefits only (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204035).

How much do you lose if you retire at 62 instead of 66?

A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent. Starting to receive benefits after normal retirement age may result in larger benefits.

What is the difference between retiring at 62 and 63?

For people filing at age 62 this year, that results in a total reduction of 25% from their full retirement age benefit, vs. a 20% reduction if they wait until age 63 to file.

What happens if I retire at 62 instead of 67?

Sign up for Fidelity Viewpoints weekly email for our latest insights. If you start taking Social Security at age 62, rather than waiting until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits with lesser reductions as you approach FRA. Remember, FRA is no longer age 65: It's 67.

What is the option 4 Social Security leveling to age 62?

Option 4: Social Security Leveling

The Retirement Systems is not paying your Social Security. We are paying a higher retirement benefit every month until you reach age 62. You receive larger monthly payments than you would otherwise be entitled to receive until you are eligible for Social Security at age 62.

What is the 62 70 Social Security strategy?

An eligible worker can claim Social Security retired-worker benefits based on his or her own earnings record as early as age 62 and can increase the monthly benefit amount by delaying claiming. Until age 70, each additional month of age at claiming entitles the beneficiary to an incremental benefit increase.

How much will I get if I retire at age 62?

(It will settle at 67 for people born in 1960 or later.) If you can wait until 70 to start collecting, you'll receive your maximum monthly benefit. A single person born in 1968 who has averaged a $50,000 salary, for example, would get $1,410 a month by retiring at 62, the earliest age to start collecting.

Can I retire at 62 if I was born in 1960?

For anyone born in 1960 or later, full retirement age is 67. For those born in 1955 through to the end of 1959 (technically, January 1, 19601), full retirement age ranges between 66 and 2 months and 66 and 10 months.

Can I get a tax refund if my only income is Social Security?

You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.