As you age and begin to think about the future, you may begin pining for the days when you no longer have to go to work. For most people, retirement is a very exciting time, where new doors open and a chapter in life closes.
But while retirement may be very much looked forward to, many people aren’t sure when they should retire, or may not even know if they are legally allowed to retire, or if they have to wait until reaching a certain age. Here’s what you should know:
There is no “legal” retirement age; whether you are 50 or 65 (or older or younger) you are allowed to retire assuming that your contract permits you to do so. Of course, whether or not you want to retire and whether or not retiring is is in your best financial interests are completely different questions. Retiring too early could jeopardize your economic future, and understanding the consequences of this is important. Before you retire, you need to make sure you are eligible to collect your pension (if you have one) and that you will be able to afford your lifestyle once you quit working.
You may have heard of the full retirement age, which many people in Crown Point confuse with the legal retirement age. The full retirement age is set by the U.S. Social Security Administration, and refers to the age at which you can start receiving 100 percent of your earned Social Security retirement benefit amount. Your full retirement age depends on when you were born, and is 65 for those born before 1937, 66 for those born between 1943 and 1954, and 67 for those born in 1960 or later (for those born in a year between 1937 and 1943, or 1954 and 1960, the full retirement age is between 65 and 66, and 66 and 67, respectively).
Your full retirement age and when you begin to claim Social Security retirement benefits has a significant effect on your benefit amount. Every adult who has earned at least 40 work credits has the right to begin collecting their Social Security retirement benefits at age 62. However, if you collect your benefits before reaching full retirement age, your monthly benefit amount will be reduced.
You can also delay collecting your benefits until after your full retirement age, in which case your benefit amount will increase for every year that you wait, up until age 70. If you want to wait until age 70 to collect benefits in order to maximize your benefit amount, then working as long as possible for the extra income may be within your best interests.
If you are approaching retirement age and want to learn more about when you should retire, we encourage you to sign up for a free Social Security workshop near Crown Point hosted by Harvest Social Security QA. These workshops are designed to help you plan for your future! You can learn more online today.
How did we do?
Note: Your review may be shared publicly.