What if I stop working at 62 but delay Social Security?

If you stop working at 62 but delay Social Security, your monthly benefit will increase with each month you wait past your Full Retirement Age (FRA) up to age 70 due to Delayed Retirement Credits, but you'll need other income to cover expenses until then; stopping work before 35 years of earnings or with lower-earning years can lower your benefit unless you have high earners to replace, so waiting to file after FRA can still boost your benefit even without working, but delaying past age 70 yields no extra credit, and you should sign up for Medicare at 65 to avoid penalties.

Can I retire at 62 but delay Social Security?

Retiring at 62 and delaying Social Security means you stop working but wait to claim benefits, allowing your monthly payment to grow significantly (up to 8% annually) until age 70, but you'll need other income to cover expenses during the gap and face risks like overspending or market downturns before claiming. While claiming early (at 62) gives you more years of payments, it reduces your benefit by up to 30%; delaying boosts your monthly amount, potentially surpassing early-claim totals in about a decade. 

What is the break even point for delaying Social Security?

The break-even age for delaying Social Security, where total benefits received from waiting equal those from claiming early, typically falls between ages 78 and 81, but this varies by individual circumstances, especially your full retirement age (FRA) and how long you expect to live. For example, waiting from your FRA (around 67) to age 70 often breaks even in your early 80s, meaning if you live past that, waiting yields more money over your lifetime, acting as a valuable "deferred annuity". 

Is delaying social security benefits still a good deal?

You should generally wait to take Social Security as long as possible (up to age 70) for the highest monthly payout, but the best time depends on your health, finances, and lifestyle goals; claiming early (age 62) provides income sooner but reduces payments, while delaying past your Full Retirement Age (FRA) increases benefits significantly, often making it financially beneficial if you expect to live longer. Consider your health, spouse's survivor benefit, and other retirement income when deciding, but filing by 70 is key for maximizing lifetime income. 

How long can you delay claiming Social Security?

Once you're eligible, you can claim at any time, so deciding to delay is realistically more of a semiannual decision rather than a once-in-a-lifetime opportunity. In fact, once you exceed your full retirement age, you can elect to receive up to six months' retroactive benefits in a lump sum.

What happens to my Social Security if i stop working at 62?

How much do you gain by delaying Social Security?

Delaying Social Security after your Full Retirement Age (FRA) significantly boosts your monthly check, adding about 8% annually (or 2/3 of 1% monthly) in Delayed Retirement Credits until age 70, resulting in potentially 24-32% more than claiming at FRA, which adds up for life, especially for longevity and spousal benefits, though break-even points vary. 

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

What is the smartest age to collect Social Security?

The "smartest" age to collect Social Security varies, but age 70 is often statistically best for maximizing lifetime benefits, as monthly checks grow significantly until then, especially for higher earners and those expecting long lives; however, claiming at Full Retirement Age (FRA) (67 for most) secures 100% of benefits, while taking it as early as 62 provides income sooner but permanently reduces payments, making it ideal for those with immediate financial needs or shorter life expectancies. 

Is $5000 a month a good retirement income?

Yes, $5,000 a month ($60,000/year) is often considered a good, even comfortable, retirement income for many Americans, aligning with average spending and covering basic needs plus some extras in most areas, but it depends heavily on location (high-cost vs. low-cost), lifestyle, and if your mortgage is paid off; it provides a solid base but needs careful budgeting and supplementation with Social Security and savings, say experts at Investopedia and CBS News, Investopedia and CBS News, US News Money, SmartAsset, Towerpoint Wealth. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

What does Dave Ramsey say about drawing Social Security at 62?

Claiming Social Security at 62 can be risky, because if you don't have a lot of savings to supplement your benefits, you could end up short on income.

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

How many hours am I allowed to work if I retire at 62?

You can work as many hours as you want at age 62, but your Social Security benefits might be reduced until you reach your Full Retirement Age (FRA), typically 67; after FRA, there are no earnings limits, and you can work full-time without affecting benefits, though high earnings can make benefits taxable. The key factor is your income relative to the annual limit (e.g., ~$23,400 in 2025), not hours, as earnings over the limit reduce benefits dollar-for-dollar before FRA, but this is temporary and recalculated later. 

How much Social Security will I get if I make $60,000 a year?

If you consistently earn $60,000 annually over your career, you could receive roughly $2,300 to over $2,600 per month at your Full Retirement Age (FRA), depending on the year you retire and the exact formula used (around $2,311 using 2025 bend points for an AIME of $5,000), but this can vary, with lower amounts if you claim early and higher if you delay, with official estimates from the SSA Social Security Administration (SSA) being most accurate. 

What is the big retroactive check from Social Security?

Many beneficiaries will be due a retroactive payment because the WEP and GPO offset no longer apply as of January 2024. Most people will receive their one-time retroactive payment by the end of March, which will be deposited into their bank account on record with Social Security.

What is the number one mistake retirees make?

The top ten financial mistakes most people make after retirement are:

• 1) Not Changing Lifestyle After Retirement. ...
• 2) Failing to Move to More Conservative Investments. ...
• 3) Applying for Social Security Too Early. ...
• 4) Spending Too Much Money Too Soon. ...
• 5) Failure To Be Aware Of Frauds and Scams. ...
• 6) Cashing Out Pension Too Soon.

What is a decent monthly retirement income?

A good monthly retirement income is often considered 70-80% of your pre-retirement income, but it truly depends on your lifestyle, location, and expenses, with benchmarks ranging from $4,000-$8,000+ monthly for a comfortable life, factoring in needs like housing, healthcare, and travel. Financial planners suggest calculating your specific "income gap" by subtracting guaranteed income (like Social Security) from your estimated needs to see what you need from savings. 

Why is delaying Social Security bad?

Delaying Social Security might not make sense if you need the income sooner, have a shorter life expectancy, risk depleting investments to bridge the gap, or want to enjoy retirement's active years, as waiting forces reliance on portfolios that can suffer market losses, while early claiming provides flexibility and avoids underspending in your prime years. The decision involves balancing guaranteed future income against present needs and lifestyle, considering factors like portfolio health and personal well-being over just maximizing the monthly check. 

How many people have $1,000,000 in retirement savings?

Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.

What is the best age to retire?

“Most studies suggest that people who retire between the ages of 64 and 66 often strike a balance between good physical health and having the freedom to enjoy retirement,” she says. “This period generally comes before the sharp rise in health issues which people see in their late 70s.

What is the number one regret of retirees?

Here are the four most common regrets I've encountered over the years.

1. Waiting too long to retire. This regret comes up over and over. ...
2. Not spending more earlier in life. ...
3. Not tracking their progress earlier. ...
4. Lack of tax diversification.

What does Dave Ramsey say about Social Security?

Dave Ramsey views Social Security as a supplement, not a primary retirement income, emphasizing that relying on it is a "dumb" idea; he advocates for claiming benefits as early as 62 if you're debt-free to invest the money for potentially higher returns, while also warning about potential future cuts due to trust fund depletion and urging strong reliance on 401(k)s and IRAs. 

What does Warren Buffett say about Social Security?

Warren Buffett's core message on Social Security is that cutting benefits is a major mistake, as a rich country must care for its elderly, but he acknowledges the system's financial challenges and suggests solutions like raising the taxable income cap for Social Security taxes, slightly increasing the payroll tax, and gradually raising the retirement age, urging Congress to act before trust fund insolvency forces drastic cuts. He sees Social Security as a vital, successful government program that needs responsible adjustments, not benefit reductions.