Many people approaching the early Social Security retirement age of 62 wrestle with whether they should apply for early retirement. If a person is suffering from impairments that they believe limits their ability to work they also may consider applying for Social Security disability. This is brief article about making the decision is bit easier.
First of all, anyone who decides to apply for early retirement is only eligible to do so at age 62. And, if someone decides to apply for early retirement, they should be aware that they will pay a penalty for collecting retirement payments early.
Anyone who collects early retirement beginning at age 62 will only get about 80 percent what their full retirement amount would be if they wait until full Social Security retirement age. Even when that person reaches their full retirement age they will still only receive 80 percent of the full amount in all future payments. This is the penalty people pay for collecting early.
There is one exception though.
If a person begins to collect early retirement at age 62 and files a Social Security disability claim they could recoup the remaining 20 percent of payments they forfeited for collecting early if they are found disabled prior to turning age 62. This is because someone who is found disabled by Social Security, who has worked long enough and more recent enough, is entitled to a monthly benefit amount comparable to what their full Social Security retirement amount would be.
Another thing to keep aware of is Social Security’s rules about full retirement, which is now based on the year of birth.
Anyone born in 1937 or earlier reaches the full retirement age at 65. Anyone born in 1960 or later does not reach full retirement age until 67. All of those who were born between 1938 and 1959 reach full retirement age at some point when they are either 65 or 66 based on the year they were born.
JK
