Tip of the Day: How to Retire Early

Most people would love to retire early, but how do you know what the right age is for you? Congress modified Social Security benefits in 1983. Now, if you were born after 1937, you won't receive full Social Security benefits at age 65. For full Social Security benefits, you must now wait until you reach the following age:

Full Retirement Age:

Year of Birth: 1938
Full Retirement Age: 65 and 2 months

Year of Birth: 1939
Full Retirement Age: 65 and 4 months

Year of Birth: 1940
Full Retirement Ag e65 and 6 months

Year of Birth: 1941
Full Retirement Age: 65 and 8 months

Year of Birth:1942
Full Retirement Age: 65 and 10 months

Year of Birth:1943 - 1954
Full Retirement Age: 66

Year of Birth: 1955
Full Retirement Age: 66 and 2 months

Year of Birth: 1956
Full Retirement Age: 66 and 4 months

Year of Birth: 1957
Full Retirement Age: 66 and 6 months

Year of Birth: 1958
Full Retirement Age: 66 and 8 months

Year of Birth: 1959
Full Retirement Age: 66 and 10 months

Year of Birth: 1960 or later
Full Retirement Age: 67

You can begin receiving your retirement benefit as early as age 62. But, if you retire on your 62nd birthday, your monthly benefit will be reduced as follows:

1938: 20.83%
1939: 21.67%
1940: 22.50%
1941: 23.33%
1942: 24.17%
1943 - 1954: 25%
1955: 25.84%
1956: 26.66%
1957: 27.50%
1958: 28.33%
1959: 29.17%
1960 or later: 30%

You aren't limited to retiring early at just age 62. If your Full Retirement Age: is 66 and you retire early at age:

63, your monthly benefit will be reduced by 20%.
64, your monthly benefit will be reduced by 13.33%.
65, your monthly benefit will be reduced by 6.67%.

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