Does it make financial sense to wait until 66 to retire?

I've about 7 years before I'm 62 and have to be 66 before I can retire with a higher income from social security. I have a retirement income besides social security. Does it make financial sense to wait until 66 or should I retire at 62?

Public Comments

1. I'm currently retired from the military and I'm 49, I retired in 1995. The main question is can you live to your satisfaction and desired comfort level on the retirement that you would be personally getting. Remember what you get in pension and the interest you make on your investment take away from the social security you will get also.
2. That's the $64 thousand question. It depends on several factors, such as your ability to work, your saving, and your relative health, not to mention the worry whether or not SS will still be around then. If you are in relatively good health and expect to work a few more years then it may pay to get the full benefit. I opted out at 64, which gives me over about 80% of the full benefits. I mostly think the system is about to falter, so thought I would get in early. Still work part-time, so the income is enough.
3. I retired in 1984 from the Government and I retired again when I turned 62. YES... if you retire at 62, the government won't break even unless you live less than another 10 years.
4. My mom was very sick, and was told she would die with in 3yrs. So we had her take her SS at 62. was only getting 385.00, if she waited to 65, she would have gotten 545.00. In 3yrs she would have lost 13,865.00. To make that up she would need to live over 7yrs. But if you had the benefit of what you can do with the money like invest it. It could add a few more yrs. So if you plan to live lets say 20yrs, then maybe. it might be worth it to waiting. But you will break even around 10-12yrs, because you have to wait another yr.
5. The way the economy is and can only get worse, I think you should hold out and get as much as you can. I'm sure you will need every penny by that time.Things aren't looking too good and in 10 or more years , who knows where we'll be and under whose power.If things go as predicted ,by a reformed Muslim------we will be under the Islam law by 2020 . It scares me half too death. But, being a Christian, I have the hope for Jesus to come back before then and get us out of here.
6. I retired at 63 cause it was best for me...... Figure the financial portion against the value to YOU to retire at a younger age. Everything is relative.
7. If you can afford to survive with whatever income you have at 62,then do so. The longer you have to spend the benefits of a well earned working life,the better. Retirement is not just about higher income,there are more important thing to do with your remaining years than carry on doing what you've done all your working life,counting pennies
8. You are penalized 7% of your full social security for each year you retire early. So, if 66 is your qualified full retirement, and you apply for social retirement earnings at age 62, you will receive 28% less than if you waited. Remember, you will NOT be elgible for Medicare until age 65. Visit www.socialsecurity.gov. I retired at age 64, took a 14% penalty. Many reasons for me to do that.
9. It makes sense to wait..........
10. If you can afford to retire,then go as soon as you are able to.
11. Why not retire at 62, and have a part time job also. Those combined incomes may be better than a full time job and you won't have to push yourself so hard to get to 66 in order to retire. I think the difference is a few hundred dollars a month from retiring at 62 than 66. Eh, I say get the 4 years of SS that you deserve and not wait.
12. I finished work through ill health,at 55yrs old but Retired at 60, as my house was paid for a good amount of savings and a not brill pension,it suited me,I have now had over 11years of freedom from stress ETC,but over the last eighteen months I have been put through the mill with. 1/all teeth taken out infection to gums INDUSTRIAL PROBLEMS) 1/!pair of earing aids,INDUSTRIAL PROBLEMS. 3/Prostrate problems (All clear now just a little weaken of the bladder.) 4/Angina attack, lucky medication is keeping it in check. 5,And only this last week put on more tablets, as I have suspected water on lungs. My advice is ***if you can see your way clear financially DO IT NOW. You do not know what can happen tomorrow,live for today,good luck and a HEALTHY RETIREMENT
13. You should retire at 66. Most IRAs make it mandatory to take your money out by 70 1/2. Plus with the higher income from social security you should live comfortably even if a medical problem should arise. With the way prices are steadily going up up up, I see staying until you are 66 as a better plan. Good luck with your decision.
14. It really depends on you and what makes you feel comfortable. No two financial situations are the same. Everyone is different. I retired at age 61.5 and have been living on my pension and interest from my savings ever since. Decided not to receive social security benefits early. My plan is to wait until I'm 70 to start receiving social security benefits. I was born in 1940, and my full retirement age in terms of social security is 65.5 years of age. At age 62, I would have paid a penalty of 24.5% (7% per year for 3.5 years) and received only 75.5% of my 100% benefit amount. At age 65.5, I would have received 100% of my benefits. At age 70, I will receive a bonus of 31.5% of my 100% benefits (7% per year for 4.5 years) or 131.5% of my 100% benefit amount. I'm now 68, and have 2 more years to wait. At age 70, I will be receiving 31.5% more than I would have at age 65.5. That represents a nice little raise. Also, the percentage gap (75.5% to 131.5%) between age 62 and age 70 amounts to 56%. Looking at it that way makes the increase seem even nicer. To me, the choice was clear. Those percentages were just too good to pass up. But that's because my particular situation allowed me a choice. Some people's financial circumstances don't allow them the opportunity to make a choice. In other words, they may need the social security money right away, so they can't wait. I didn't need the social security money right away, so I could wait, and I decided to do so. And by that I mean my pension and the interest I earn from savings is more than enough to meet my current expenses. Don't want to give the impression that I'm rich. Cuz I'm not. It's simply that I can live on a very modest amount because I have no debt, have a new and already-paid-for low-maintenance car (2008 Toyota Corolla), and a very nice completely refurbished one-bedroom rental apartment available at 25% less rent than one of the new ones I had considered earlier. I'm the kind of person who doesn't need to be flashy to be happy. Others might find my choices embarrassing. They might have a strong need for the big car, big house, and flashy life style. To each his own, and that's why I say that no two situations are the same. So, by assessing my situation, I was able to determine what I could do and might want to do. I chose to wait and receive social security benefits as late as possible: that is, at age 70. I did so because I'm healthy and don't see why I wouldn't live way beyond my break even age of 84. And by break even age, I mean the age at which I've earned enough money from my much larger social security benefit payments to make up for all the money I lost by not starting to receive benefits earlier. I fully expect to become a centenarian, so for me it will have been worth it. But that's assuming I make it to the centenarian status (or at least my break even point of age 84). It's all a big gamble. I could die tomorrow and never receive a dime from the Social Security people. I just looked at my situation and made a decision. You need to look at your particular situation, and weigh the factors that apply to you. If you'll have enough money to live comfortably until age 70 without the help of social security benefits, and you think (based on your health) that you have a good chance of making it beyond your break-even point, then you might want to consider waiting too.
15. Try to keep a balance between having an adequate income in your retirement years and in having retirement years to enjoy. I retired at 62 because I felt that I would be healthier if I lived a slower paced life. I had also worked with several people who had worked many years and died suddenly, without receiving any retirement. None of us knows how long we have. I say, take the money and retire, enjoy what remains of your life.
16. It depends on several things. If you like what you are doing, why retire early? You not only loose the income, but you cut some off you're SS by starting payment early. I started drawing SS about 6 months earlier than when I was fully vested and kept on working for 6 months. I lost about 40 dollar a month doing this but was no great loss. If you can keep working till (or close to)time you get full SS retirement, why not?
17. Yes, it makes good sense to wait & retire at 66 years of age, which I understand is becoming the norm for those facing retirement before long. If you can live comfortably by retiring at the age of 62 yrs. then do so, otherwise, wait four more years. :)
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19. Talk with a good financial adviser and she/he can calculate things for you. You can retire at 62 (or earlier) and not apply for SS if you choose, but if you do take the SS benefits you are locked in for life with the smaller benefits. And SS is not truly inflation proof. It was changed recently and now the annual cost of living adjustments don't keep up with inflation as well as they used to. In a few years we will all have less buying power with what we get compared to right now.