What happens to your Social Security income if you retire early at age 62 instead of 65?

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

At what age can you earn unlimited income on Social Security?

You can earn any amount and not be affected by the Social Security earnings test once you reach full retirement age, or FRA, which is 66 and 2 months if you were born in 1955 and will gradually increase to 67 for people born in 1960 and later.

Can you collect Social Security at 62 and still work?

You can get Social Security retirement or survivors benefits and work at the same time. But, if you’re younger than full retirement age, and earn more than certain amounts, your benefits will be reduced. The amount that your benefits are reduced, however, isn’t truly lost.

What are the benefits of retiring at 62?

If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect up to a 30\% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8\% increase in your benefit.

What is the penalty for retiring at 62?

If your full retirement age is 67 and you claim Social Security at 62, your monthly benefit will be reduced by 30 percent — permanently. File at 65 and you lose 13.33 percent. If your full retirement benefit is $1,500 a month, over 20 years that 13.33 percent penalty adds up to nearly $48,000.

What is lowest amount of Social Security?

That minimum gets changed every year based on inflation. For 2019, a person would have to earn at least $14,805 to get credit for the year for special minimum benefit purposes….The basics of Social Security’s minimum benefit.

How soon after I turn 62 Can I collect Social Security?

You can apply up to four months before you want your retirement benefits to start. For example, if you turn 62 on December 2, you can start your benefits as early as December. If you want your benefits to start in December, you can apply in August.