You can collect Social Security retirement benefits as early as age 62. Historically, that meant receiving a benefit 80% as large as your age-65 benefit. That changed for people who turned 62 last year because their full retirement age is 65 years and two months. Retiring at 62 meant collecting a check worth 79.17% of your “normal” benefit.
If you turn 62 in 2001, your full retirement age would be 65 years and four months. Therefore, taking a benefit at 62 means receiving only 78.33% of your normal benefit. Nevertheless, it pays to take Social Security benefits at age 62, if you’re no longer working. Your Social Security benefits are taxed no more than 85%; for many beneficiaries, only 50% is subject to tax while some low-bracket retirees will owe no tax at all.
By taking tax-advantaged Social Security benefits early you may reduce the amount you have to withdraw, fully-taxed, from your IRA.
