Early Retirement and Social Security
The federal government has prescribed differing retirement ages based on the year in which you were born. For example, a person born in 1938 can retire at 65 years and 2 months, where as a person born after 1960 can retire at 67 to receive the normal benefits.
However, you can retire as early as 62 and still receive social security benefits. Your monthly payment is likely to be reduced because your payments begin earlier than intended and you will make a less substantial contribution to the pool of funds gathered for Social Security.
Factors to Weigh When Considering Early Retirement
The Federal Government’s Social Security website estimates a person born in 1937’s social security payment would be reduced by 20% if he or she retired early. For an individual born in 1960 or later, the decrease would be more significant, costing them up to 30% of their monthly payments if they were to retire early. The following are some elements for you to consider:
- What is your familial history in terms of life span and how long do you expect to live?
- Would you have health insurance? Employer provided health benefits will most likely stop if you are to quit, and Medicare does not start until 65.
- Would you have other income to support you?
- Might other family members be qualified to receive benefits?
If you or someone you know is considering retiring early, and would like to discuss your options, contact the experienced Indianapolis Social Security attorneys of the Hankey Law Office at (800) 520-3633 to set up a consultation.