Tip of the Day: How to Retire Early

Oct. 25, 2010— -- 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%.