In the US, you have to be at least 62 years old to apply for Social Security retirement payments. After that, anyone who has worked for a while can ask for their monthly pay. Of course, there is one clear effect of retiring early: your payment will be forever less.
Even though this is the youngest age you can get benefits, it’s not always the best choice. It makes a lot of workers wonder if it would be better to wait a little longer to get a bigger reward. The Social Security Administration (SSA) has set different ages that directly affect how much money you can get each month. This is why it’s important to know the difference between the minimum age and the “full retirement age.”
In addition to all of this, there is a bonus system that can make your monthly payment much higher if you wait to apply. Because of this, it is important to know all of your choices before making a decision and then think about which choice is best for you.
Chart for Social Security Retirement Age
The SSA has a chart that shows what the Full Retirement Age (FRA) is. This age changes based on the person’s birth year and marks the exact point at which they can get their full monthly benefit without any cuts.
For instance, people born after 1960 become adults at age 67. But for people born in the last few decades, that age can be anywhere from 65 to 66 years and a few months. No matter what time, anyone can go to the official SSA website and look at the whole map. If you apply for benefits before that age, you will automatically have your benefits cut. If you start collecting at age 62, this cut can be as much as 30%.
How old do you have to be to retire?
When a person reaches full retirement age, they can get all of the money they are owed based on how much they have saved. And after that, if you apply early, your monthly check will be less.
This number is reached by using the person’s birth year as a starting point. It is then used to determine whether to lower or raise the amount. Because of this, a lot of people wait until they are 18 before asking for benefits, especially if they don’t need the money right away.
You can also wait to retire until you are older than the full retiring age. If so, the SSA gives you an 8% raise every year for every extra year you work, until you turn 70. After that age, no more bonuses are given.
That way, someone who waits until 70 years old could get up to 24% more in benefits than someone who left at 67 years old. Really, that’s a big difference in the long run.
What age is best to sign up for Social Security?
There is no one perfect age to stop working and retire. It depends on who you are, how much money you have, and how healthy you are. If you don’t have any extra money or don’t think you’ll be living for many more decades, applying for benefits at age 62 might make sense. If you have savings or a second pension, on the other hand, you might want to wait to apply so that you can get a bigger check.
At the full retirement age, which is currently 67 for most people, the income is guaranteed at 100%. Most people choose this choice because it lets them get paid as soon as possible without giving up too much of their monthly payment. If someone wants to make the most money each month, they can wait until they are 70 years old. Taking this method can save a lot of money over time if the person is healthy and has a long life expectancy. You can use the SSA’s official tool to get an idea of your benefits based on your age when you apply.
Even though 62 is the youngest age to start getting Social Security, that doesn’t mean it’s the best choice for everyone. If you apply for benefits before you turn 18, your monthly payments will be lowered permanently. Alternatively, waiting can help you make more money for the rest of your life.
Every case is unique. Before making a choice, you should carefully look at your personal situation, look at your contribution past, and use the official tools to run different scenarios.