The Impact of Retirement Age on Social Security Benefits

The full retirement age is the age at which a person is eligible to receive their full Social Security retirement benefits. It varies based on the year you were born. For those born in 1960 or later, the full retirement age is 67. For those born before 1960, it ranges from 65 to 66 years old.

Yes, you can retire as early as age 62, but your monthly benefit amount will be permanently reduced. The reduction amount is based on the number of months you receive benefits before reaching your full retirement age.

Yes, you can delay retirement and receive an increased monthly benefit amount. For each year you delay retirement past your full retirement age, your benefit amount will increase by 8% up to age 70.

If you are below full retirement age and continue working while receiving Social Security benefits, your benefits may be reduced if you earn above a certain amount. For 2021, the earnings limit is $18,960. If you earn above this amount, your benefits will be reduced by $1 for every $2 earned above the limit. Once you reach full retirement age, there is no earnings limit and you can work and receive your full Social Security benefits.

If you are married, your spouse may be eligible for spousal benefits based on your work history. If your spouse claims benefits before their full retirement age, their benefits will be permanently reduced. If they delay retirement past their full retirement age, their benefits will increase by 8% per year up to age 70.