WELFARE
What is the maximum benefit for someone retiring at 62?
If someone chooses to retire at 62, they can still receive Social Security benefits, but the benefits will be reduced.
The maximum benefit for someone retiring at 62 depends on several factors, including their earnings history and the year they were born. The full retirement age (FRA) is the age at which individuals can receive their full Social Security retirement benefits. For people born between 1943 and 1954, the full retirement age is 66 but for most people it is 67.
If someone chooses to retire at 62, they can still receive Social Security benefits but the benefits will be reduced. The reduction is based on the number of months they claim benefits before reaching their full retirement age. The maximum reduction for individuals retiring at 62 is typically around 30 percent of their full retirement benefit.
According to the SSA, the maximum Social Security benefit for someone who retires at full retirement age is $3,627 per month. However, if you retire in 2023 at age 62 your maximum benefit would be $2,572. On the other hand, waiting until age 70 to claim increases the maximum benefit to more than $4,555.
How to calculate the Social Security early retirement penalty
The SSA has a calculation for just how much your monthly Social Security payments will be permanently reduced from the primary insurance amount accumulated over the years you contributed depending on just how early you retire.
During the first 36 months, for every month that a beneficiary signs up to receive Social Security prior to full retirement age the primary insurance amount will be reduced by 5/9 of 1 percent, or around 0.55 percent. For each additional month beyond 36 months, the reduction is 5/12 of one percent, or a little less than 0.42 percent.