Please ensure Javascript is enabled for purposes of website accessibility What is early retirement? | Brown & Brown Absence Services Group

The Social Security Administration (SSA) offers a wide variety of benefits and services to individuals of all ages. One of those benefits is the opportunity for workers to collect their retirement benefits beginning at age 62, in what is more commonly known as “Social Security Early Retirement,” or, “Reduced Retirement.” If benefits are elected to be received early, Social Security will reduce the payment amount based on the number of months benefits are received prior to full retirement age being reached.

The chart below, taken directly from Social Security’s website, shows a wide range of benefit amounts, including an individual with a full retirement age of 66 receiving a 25% reduction in benefits should they chose to retire early at age 62. In this example, the retired worker would only receive 75% of the monthly benefit they would have received had waited until their full retirement age.

Primary and spousal benefits at age 62
(benefits based on a $1,000 primary insurance amount)
Year of
birth
Normal (or full)
retirement
age
Number of
reduction
months
Primary Spouse
Amount Percent
reduction
Amount Percent
reduction
1937 or earlier 65 36 $800 20.00% $375 25.00%
1938 65 and 2 months 38 791 20.83% 370 25.83%
1939 65 and 4 months 40 783 21.67% 366 26.67%
1940 65 and 6 months 42 775 22.50% 362 27.50%
1941 65 and 8 months 44 766 23.33% 358 28.33%
1942 65 and 10 months 46 758 24.17% 354 29.17%
1943-1954 66 48 750 25.00% 350 30.00%
1955 66 and 2 months 50 741 25.83% 345 30.83%
1956 66 and 4 months 52 733 26.67% 341 31.67%
1957 66 and 6 months 54 725 27.50% 337 32.50%
1958 66 and 8 months 56 716 28.33% 333 33.33%
1959 66 and 10 months 58 708 29.17% 329 34.17%
1960 and later 67 60 700 30.00% 325 35.00%

If you currently have an open SSDI claim and are considering early retirement, you may also be wondering how this would affect your SSDI claim. In most cases, you may be able to receive reduced retirement benefits while you are waiting for a decision on your disability claim. Your monthly SSDI benefits are likely to be higher than the early retirement benefit because it will not be subject to the same benefit reduction. If your disability claim is awarded, SSA will pay you whichever benefit is higher.

If you have questions about your SSDI benefits, and how electing retirement benefits may impact them, please do not hesitate to contact our office or reach out to your local Social Security office for assistance.

Nothing in this post is intended as advice or a suggestion to elect or not elect to claim benefits of any kind, including Social Security benefits, nor is it intended as financial advice in any way. The decision to claim benefits is a personal one that is contingent upon each individual’s unique circumstances.