Understanding the Impact of Early Retirement on Social Security Benefits Calculation
Retirement is a significant milestone in one’s life, marking the transition from years of hard work to a period of relaxation and fulfillment. Many individuals dream of retiring early to enjoy more leisure time and pursue personal interests. However, the decision to retire early can have implications on various aspects of one’s financial well-being, including Social Security benefits. In this article, we will explore how early retirement affects Social Security benefit calculations and what individuals need to consider when planning for their retirement.
1. Early Retirement Age and Full Retirement Age
The Social Security Administration (SSA) has defined the full retirement age (FRA) as the age at which individuals are eligible to receive their full Social Security benefits. For most individuals, the full retirement age is between 66 and 67, depending on the year of birth. However, individuals can choose to retire early and start receiving benefits as early as …
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