Early Retirement: Is Receiving Social Security Early Worth It?

When you are dealing with Social Security, early retirement may not always be in your best interests. Here are a few things to consider about when you should start taking Social Security benefits.

Social Security Benefits

When you retire, you should be able to start receiving Social Security benefits. Not everyone is going to receive the same payment when it comes to getting Social Security benefits. The Social Security Administration uses a formula in order to determine how much money you have earned over the course of your working years and then calculates your payment.

Age

Depending on when you decide to start taking Social Security benefits, this is going to impact the amount of the payments that you receive. The earlier that you start taking payments, the smaller your monthly payment is going to be. Technically, you can start taking Social Security payments as soon as you turn 62 years old. However, the system is designed based upon people retiring at "full retirement age" which is 65 according to the Social Security Administration. If you can wait longer and live off of your other retirement assets, you are going to be able to get much larger monthly payments when you start taking Social Security benefits.

 

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