Retirement can have multiple meanings. Scaling back full-time work, applying for social security benefits, or drawing on your savings can occur at different times. And retirement can mean continued part or full-time work. Creating a plan that fits your needs is important.
The timeline of when you retire and when you elect to receive benefits can affect the size of your monthly social security benefit. Thus, as you create your retirement plan, its important to consider how your timeline, work plans, and income needs are interrelated.
Facts
Working while collecting benefits: If you are younger than retirement age, receiving benefits, and working, your earnings may reduce your available benefits. However, when you reach full retirement age, your continued work may bring a higher monthly rate--increasing the value of your lifetime benefits. Learn more in this Social Security publication: How Work Affects Your Benefits.
Retirement age: The retirement age, for those born between 1943 and 1954, is 66. Others can find their retirement age on their Social Security Statement.
Retiring early: If you are eligible to retire early, you can retire at 62. Your Social Security Statement explains your eligibility. However if you retire early, your benefits will be reduced by a set percentage.
Delaying retirement: If you elect to delay receiving Social Security benefits beyond age 66, your monthly benefit will be increased a set percentage per year you delay.
Links
Retirement planning, in terms of Social Security, starts by visiting socialsecurity.gov. The site offers a range of services, assisting you with Social Security planning and actually requesting benefits. The retirement benefits calculator helps you assess your benefits and how they may change over time. The site also has a helpful discussion of how your decision of when to retire may affect your benefits.
Planners: http://www.socialsecurity.gov/planners/
Benefit calculators: http://www.socialsecurity.gov/estimator/
When to retire: http://www.socialsecurity.gov/pubs/10147.html