What are my retirement options?
Retiring at full retirement age - To retire, you must have earned 40 credit. See the table below to determine your full retirement age.
Year of Birth |
Full Retirement Age |
1937 or earlier |
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 |
1943-1954 |
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 or later |
67 |
* Refer to the previous year if you were born January 1st.
Retiring early - If you’ve earned 40 credits, you can start receiving Social Security benefits at 62 or at any month between 62 and full retirement age. However, your benefits will be permanently reduced based on the number of months you receive benefits before you reach full retirement age.
If your full retirement age is 66, they will be reduced:
25% at age 62;
20% at age 63;
13 ½ % at age 64; or
6 2/3 % at age 65.
Receiving retirement benefits while you work - You can work while receiving monthly benefits. And it could mean a higher benefit that can be more important to you later in your life and increase future benefits your family and survivors could receive.
The SSA will review your record each year to see whether the additional earnings will increase your monthly benefit. If there’s an increase, the SSA will send you a notice of you new benefit amount. Earnings in or after the month you reach full retirement age won’t reduce your Social Security benefits. However, if you receive benefits before reaching your full retirement age, your benefit amount will be reduced, unless you have been determined disabled by the SSA.
* In the year you reach full retirement age $1 in benefits will be deducted for each $3 you earn above the annual limit ($36,120 in 2008) until the month you reach full retirement age. After that, your benefits will not be reduced, no matter how much you earn.
* In the years before you reach full retirement age, $1 will be deducted for each $2 you earn above the limit ($13,560 in 2008).
If you lose benefits because of work, your benefit will be increased later to account for the months you didn’t receive benefits before reaching full retirement age.
Delaying Retirement - You may decide to continue working beyond your full retirement age without choosing to receive benefits. If so, your benefit will be increased by a certain percentage for each month you don’t receive benefits between your full retirement age and age 70. This table shows the rate your benefits will increase if you delay retiring.
Year of Birth |
Yearly Increase Rate |
1937-1938 |
6.5% |
1939-1940 |
7.0% |
1941-1942 |
7.5% |
1943 or later |
8.0% |
Applying for Social Security Retirement Benefits and Medicare - It’s best to contact Social Security three months before the month in which you want to receive benefits to discuss the options that are available to you. In some cases, your choice of retirement month could mean additional benefits for you and your family.
Even if you don’t plan to receive benefits because you’ll continue working, or if you have filed for disability you should sign up for Medicare three months before reaching age 65 regardless of when you reach full retirement age. Otherwise, your Medicare medical insurance (Part B) could be delayed and you could be charged a higher premium.



