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.
