Deciding when to claim social security benefits takes strategy. Anyone born in the 1960’s or later won’t be eligible for full retirement benefits until the age of 67, but is 67 the ideal age to retire? When many of our parents were planning for retirement, it made sense for them to retire at age 62. People didn’t live as long thirty of forty years ago so it would not have made sense for them to wait to take full retirement benefits when the average life expectancy was 68. Today, we live longer so we need to carefully decide when to begin claiming social security. 

For those nearing age 62 and still working, consider your health and your ability to continue in your current position. If your health is great and you can physically manage your job, waiting to retire at age 67 or 70 would be financially beneficial. Working full-time for an additional 5 or 8 years over the minimum retirement age would mean more time to save and invest and prepare for life after retirement. Not to mention, waiting to claim full or delayed social security benefits means a larger monthly payment. After retiring at age 67 or 70, you can choose to continue working full or part-time and your income will not affect your benefits. 

If you are nearing age 62 and of ill health and can’t imagine keeping up with your current position in the coming years, retiring early makes sense. Taking early retirement will reduce your monthly benefits but those willing and able can choose to work part-time can, for 2024, can earn up to $22,320 before benefits are withheld. The Social Security Administration will deduct $1 from your benefit payments for every $2 you earn above the annual limit.

The best way to find your ideal retirement age is to work with one of our fiduciary financial advisors who will create your written retirement plan to show you how much money you’ll have in retirement, where it will come from, and how long it will last. If you have questions or would like to make an appointment, call Alloy Wealth at 800-689-3935.