Then at age 65, our retiree would start collecting Social Security and withdrawing 4 percent of the remaining nest egg each year. By taking the entire population of respondents who consider themselves retired, here's the breakdown of when they became early retirees: (We include 'Don't Know' and 'Refused' here because there is no easy way to assign them to a category.). Social Security's full-benefit retirement age is increasing gradually because of legislation passed by Congress in 1983. For every entry in the 2017 SHED, the Federal Reserve classified the respondent as: As we discussed in our post on how Americans pay for retirement, some folks take exception to "self-labeled" forms of retirement. The maximum retirement benefit in 2017 for someone who waits until age 70 to collect benefits is $3,538 a month. If you have $225,000 saved, the answer is: Probably. This section's classification is the survey's strictest – and is reflected by only 3.71% of 55 and youngers being early retirees. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Our experts have been helping you master your money for over four decades. Number Retiring by Age … But you have to plan well. Bankrate asked Scott and two other financial planners to make recommendations for a hypothetical worker with the following profile: This individual would live off his savings for three years. Note that although the numbers above are accurately portrayed, this probably isn't the best measurement. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. Here are those results based on Federal Reserve classification: Data for this post comes from the 2017 Federal Reserve Survey of Household Economics and Decisionmaking (SHED). Our editorial team does not receive direct compensation from our advertisers. We are an independent, advertising-supported comparison service. So, you can retire early at virtually any age you want — once you’re financially ready! Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age… Early retirement benefits will continue to be available at age 62, but they will be reduced more. A Red Ventures company. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Another way to gauge early retirement is to look at how old retirees are today. Delaying Social Security”, Anna Rappaport: "Understanding Mortality Improvement”, Eric Kingson:  “Social Security and the Vanishing 401(k)”. Read on to learn how to reach this goal and retire at 62. how we make money. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Currently, the full benefit age is 66 years and 2 months for people born in 1955, and it will gradually rise to 67 for those born in 1960 or later. Consider: A 90 year old may recall retiring at 45 – but that scenario doesn't speak to one's ability to retire early in the current economy. Our goal is to give you the best advice to help you make smart personal finance decisions. With delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70. COVID-19 Impact: Social Insurance Responses. Other interesting numbers that stand out: Due to the timing of commonly available government benefits, early retirement (usually) requires considerable resources or alternative streams of income to stop working. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. An individual reaching the full-benefit age in 2017 (66 years and 2 months old) receives a monthly benefit that is 8 percent higher for each year he or she delays collecting benefits until the latest claiming age of 70, at which point benefits are 132% of what they would have been at the normal retirement age. In a recent post, we argued that 55 years old as the early retirement age cutoff in America. Actual retirement age … What is the Social Security Retirement Age? Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. © 2020 Bankrate, LLC. As we mentioned, economic conditions change. The offers that appear on this site are from companies that compensate us. We maintain a firewall between our advertisers and our editorial team. As a preview, 24.29% of current living retirees report retiring before age 56. It significantly changes the results; there are enough (super?) We do not include the universe of companies or financial offers that may be available to you. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. We value your trust. As a preview, 24.29% of current living retirees report retiring before age 56. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Have you seen “Social Security: Americans Agree?” Click here to learn more. Here’s an explanation for Goal: Retire with $500,000 in 10 years. It may not be enough, How to make your retirement money last a lifetime, Privacy policy / California privacy policy. Even with the categories counted, roughly a quarter of all retirees recounted retiring at age 55 or before. Traditionally, the full benefit age was 65, and early retirement benefits were first available at age 62, with a permanent reduction to 80 percent of the full benefit amount. A mere .47% and .79% of retirees retired in their early and late 30s, respectively. In a recent post, we argued that 55 years old as the early retirement age cutoff in America. Taking an early retirement is not one of the exceptions to the 10% penalty for early withdrawals from a traditional or Roth IRA. There is a financial bonus for delayed retirement. COVERED: a week-by-week look at the political and legislative developments that led to the creation of Medicare and Medicaid 50 years ago. In this post, we'll look at how rare early retirement is in the US. A fairer view of early retirement might come from people who are living as early retirees today. INFOGRAPHIC: Can You Wait to Receive Social Security Benefits? When you reach your late 40s or early 50s, it’s natural to start wondering whether you could retire in the next decade. Bankrate.com does not include all companies or all available products. You have money questions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Get insider access to our best financial tools and content. Have you seen, “Social Security: Just the Facts?” Click here to learn more. Those numbers don't match the current snapshot, so the economic stories (and health?) So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The Role of Benefits in Income and Poverty, Social Security as a Share of the Economy, Options to Balance Social Security Finances, Social Security for Widowed Spouses in Retirement. 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