What is the diference between working from 62 to 67 to not working ?

[MarkQ40246]

I can see my benefit is about $3000 at age 67 if I keep earning around $128000 annually.

What if I stop working at 62 and just wait (not working) until 67: how can I caculate the benefit at 67?

thanks

[WebWiseWoman]

Here's the difference: we now have boomers through xers eligible.

Eligibility is based on birth year and retirement age. I wish I had been able to wait a couple of years for "full" benefit for my birth year (1954) but since then have had to make do.

That aside, I recommend save, save, then consider non-US retirement location so as not to be impacted by administrations who don't appreciate who made America strong... and only their rich friends and family (in that order) have safety nets (also out of the US, btw).

[JANMB]

Difference is dying before you collect.  

[fffred]

There is the reduction in benefits as mentioned by Gail. However, another effect you will be subjected to is the possibly smaller base benefit if your considered income for 35 years of highest earnings is smaller if you stop working at 62.

You can search the SSA site about how your benefit is calculated for more info. You may have to do some extra calculations to get your benefit amount.

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@MarkQ40246 wrote:

I can see my benefit is about $3000 at age 67 if I keep earning around $128000 annually.

What if I stop working at 62 and just wait (not working) until 67: how can I caculate the benefit at 67?

thanks

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[GailL1]

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@fffred wrote:

. . . . . another effect you will be subjected to is the possibly smaller base benefit if your considered income for 35 years of highest earnings is smaller if you stop working at 62.

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You are right.  I missed that in the question.

[GailL1]

Social Security.gov - Early or Late Retirement Quick Calculation 

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

For example, if the number of reduction months is 60 (the maximum number for retirement at 62 when normal retirement age is 67), then the benefit is reduced by 30 percent. This maximum reduction is calculated as 36 months times 5/9 of 1 percent plus 24 months times 5/12 of 1 percent.

You can set up your own personalized account with Social Security.gov and see your future benefits estimation.

https://www.ssa.gov/myaccount/ 

[MarkQ40246]

I still don't get the idea. All the caculation on SSA page is assuming that I keep working and earning what I am currently earning until a certain age not for stop working but waiting until centain age....

[GailL1]

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@MarkQ40246 wrote:

I still don't get the idea. All the caculation on SSA page is assuming that I keep working and earning what I am currently earning until a certain age not for stop working but waiting until centain age....

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Maybe this will help - at least an estimation.

Social Security.gov - Retirement Estimator 

I am not for certain but I thought that the (early) amount was shown on your benefits statement on your individualized "mysocialsecurity" page, i.e. what's my benefit if I draw at age 62. 

If not, here is the way that it is figured, estimate it as close as you can since maximum earnings have only been publicized for 2019 + 2020 but if you don't make more than what you posted, use that figure.

2019 maximum earnings . . . . $132,900. 

2020 maximum earnings . . . . $137,700

Social Security.gov Publication: Your Retirement Benefit: How It’s Figured