Q. I'm going to retire early at 52. I wasn't planning on taking Social Security until my age will be 70. Will my benefit increase because I'm retiring early? Or how will it take to grow from time to time?
He still works hard still observing at work.
Congratulations on your early retirement.
They are excellent questions to consider especially when it comes to retiring when young people are older.
There are some potential trade-offs you must agree upon when you retire young, said Michael Cohen, a retirement specialist with Certainty Retirement Advisors in Belvidere.
He said it's important that the biggest concern is usually the healthcare sector.
Medicare doesn't kick in until age 65, so you'll get to pay on the premium if you don't have any other circumstances, said he.
Lets go about how Social Security works.
The year you can get to the first age you can collect is 62 the highest number of free ages for you to earn, in terms of Social Security, is 67 and the longest time you have to earn to collect is 70.
Don't make the mistake of waiting over the age of 70 because you don't benefit, said one.
You can check Social Security for your estimates.
You can see as you know when you can receive in your full retirement age at age 67 or your full retirement age, and you can see the estimated benefits at age 62 and 70.
If you wait until the age of 70, you will earn up to 8 % per year on your money for each year you wait, thus your monthly income can be reduced by 24% by waiting until the age of 70, Cohen said.
Lets look at how your early retirement plays out.
Social Security gives you an estimate of your benefits. One can look back on your current work history.
They look at your top 35 years of earnings, then adjust that number for inflation to determine what your benefit will be, he said. This is the complex mathematical formula that the government uses to research primary insurance or full-retirement age benefit.
Go to www.SSA.gov and set up an account. At the bottom of the page, if you have estimates of benefits and work history, to see your statement as a total and if you have a valid Social Security number, and to the bottom of your list you should see your Statement. - as well as your estimated benefits and your working history. For further information, visit www.SSA.gov and set up an online account.
What is your report, what is your actual estimation?
Because you will never be earning between 52 and collect, your estimated Social Security benefit almost certainly will reduce over time, Cohen said. Because you are still pursuing jobs until the age of 62, 67 or 70, and continue to make the same income as the previous year.
If you stop working at 52, that change everything, because you can't contribute to Social Security anymore.
Cohens said that it will be tough to determine what your benefit is at age 67 or 70 today for several reasons.
Your early retirement is a big factor, but in addition, social security is always changing," he said.
As it is stating, your estimated benefits are based on current laws. Congress has made changes in the past and can at any time do it. This law could change if the tax collected will be enough to only pay 79 percent of expected benefits by 2035.
Why would this mean, do you pay for a pension?
Then you should expect a change before or after the time you're considering collecting it.
Cohen said that if the government slash the benefits, it would unlikely that the tax bill was slashed by 21%, but other action would likely be more likely.
When full retirement begins, perhaps it could change. Indeed, it used to be 65, then went to 66 now - for everyone born in 1960 or in those born after it, full retirement age is 67, Cohen said.
The state rate can rise, which is 6.2% now for W-2 employees and 12.4% for self-employed.
He said. While borrowing 8% less than the simple interest credit, he could lower the cost of living adjusted by the year.
There are three or six years between retirement and the date of the end of your retirement period. They have a lot of options and will have to act because Social Security isn't going anywhere, he said. All of these factors make determining your future benefits very difficult when there is so much gap of potential 18 years between the retirement date and the date of your begin collecting.
Karin Price Mueller writes an article called 'The Night of Things' for NY Advance Media and founded NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook.