When Can You Collect Benefits?

April 13, 2006

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You have a choice of when to begin collecting your social security retirement benefits. You can take early retirement benefits, normal (full) retirement, or hold off for late retirement. At the earliest, social security retirement benefits can begin at age 62. Normal retirement begins at 65, 66, or 67 depending on the year you were born; or you can wait until age 70. The age at which you begin collecting is one of the factors in determining the amount of your monthly benefits.

Early retirement. If you take early retirement, your monthly benefit is reduced depending on the number of months between your early retirement and your normal retirement. The maximum reduction is currently set at 30 percent. The following table can be used to calculate how early retirement will affect your monthly benefit.

How Early Retirement Will Reduce Monthly Benefits
Months Early	% of Full Benefits	Months Early	% of Full Benefits	Months Early	% of Full Benefits
2	98.9%	22	87.8%	42*	77.5%
4	97.8%	24	86.7%	44*	76.7%
6	96.7%	26	85.6%	46*	75.8%
8	95.6%	28	84.4%	48*	75.0%
10	94.4%	30	83.3%	50*	74.4%
12	93.3%	32	82.2%	52*	73.3%
14	92.2%	34	81.1%	54*	72.5%
16	91.1%	36	80.0%	56*	71.7%
18	90.0%	38*	79.2%	58*	70.8%
20	88.9%	40*	78.3%	60*	70.0%
* These percentages apply as full retirement age rises to 67.

Although each monthly check is smaller, you will probably get more of them, so even at reduced levels, amounts collected between 62 and full retirement age may result in greater total benefits. However, you must look at your overall retirement plan. The money you make by continuing to work past 62 may possibly exceed the social security benefits you'd receive during the early retirement years and qualify you for higher benefits later with a bigger payout from another pension or profit-sharing plan.

Normal (full) retirement. You can receive full benefits by waiting until you attain normal or full retirement age. Full retirement age is rising in stages to age 67 for people born between 1938 and 1960.

Age at Which Full Benefits Are Available/th>
Year of Birth	Full Retirement Age
Before 1938	65
1938	65 and 2 months
1939	65 and 4 months
1940	65 and 6 months
1941	65 and 8 months
1942	65 and 10 months
1943 through 1954	66
1955	66 and 2 months
1956	66 and 4 months
1957	66 and 6 months
1958	66 and 8 months
1959	66 and 10 months
1960 and later	67

Late retirement. You also have the option of postponing your retirement, or at least the collection of social security benefits, beyond your full retirement age. Uncle Sam gives you an added incentive to stay in the work force by giving you a bonus for each year you delay collecting benefits. The increase is to compensate for the years you did not receive social security.

For people reaching full retirement age in 2006 or 2007, the rate is 7.5 percent per year. This rate will increase to 8 percent for those reaching full retirement age in 2008. Keep in mind, though, that you will no longer earn this delayed retirement credit after you reach age 70.

Late Retirement Bonus
Year You Were Born	Annual % Increase in Benefits
1917-1924	3.0
1925-1926	3.5
1927-1928	4.0
1929-1930	4.5
1931-1932	5.0
1933-1934	5.5
1935-1936	6.0
1937-1938	6.5
1939-1940	7.0
1941-1942	7.5
1943 or later	8.0

From an actuarial viewpoint, delaying the collection of social security benefits is usually thought to be an unwise financial move. But for women, delaying retirement may be worth it. It depends on a number of factors.

If you haven't worked the full 35 years used in the benefits calculation, working a few more years will add considerably to your earnings base.
If your salary during your last working years is high, this will also raise your earnings base.
Women live longer than men, and thus are likely to receive benefits longer than the average man, even if receipt is delayed beyond age 65.