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<!-- #BeginEditable name="sitetitle" -->Social Security Benefits<!-- #EndEditable -->
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<!-- #BeginEditable name="pagetitle" --><h1>Early or Late Retirement?</h1><!-- #EndEditable -->
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<!-- #BeginEditable name="import" -->
<table width="100%" border="0" cellspacing="0" cellpadding="4" summary="formatting">
<tbody>
<tr valign="top">
<td width="25%" class="whiteruled2-td">
<p><a href="http://www.ssa.gov/pubs/10147.html">When To Start
Receiving Retirement Benefits</a></p>
<p><a href="../anypia/index.html">Benefit calculators</a></p>
<p><a href="../COLA/Benefits.html">How we calculate benefits</a></p>
</td>
<td class="grayruled2-td">
<p>
Workers planning for their retirement should be aware that retirement
benefits depend on age at retirement. If a worker begins receiving benefits before
his/her <a href="../ProgData/nra.html">normal (or full) retirement age</a>,
the worker will receive a reduced benefit.
A worker can choose to retire as early as age 62, but
doing so may result in a reduction of as much as 30 percent.</p>
<p>
Starting to receive benefits after normal retirement age may
result in larger benefits. With <a href="#late">delayed retirement credits</a>,
a person can receive his or her largest benefit by retiring at age 70.
</p>
</td>
</tr>
<tr valign="top">
<td width="25%" class="whiteruled-td"><p><a name="early">Early retirement reduces benefits</a></p></td>
<td class="grayruled-td">
<p>In the case of <i>early retirement</i>,
a benefit is reduced 5/9 of one percent for each month before normal retirement age,
up to 36 months. If the number of months exceeds 36, then the benefit is
further reduced 5/12 of one percent per month.</p>
<p>For example, if the number of reduction months is 60
(the maximum number for retirement at 62 when normal retirement
age is 67), then the benefit is reduced by 30 percent. This maximum reduction is
calculated as 36 months times 5/9 of 1 percent <i>plus</i> 24 months times 5/12 of
1 percent.</p>
</td>
</tr>
<tr valign="top">
<td width="25%" class="whiteruled-td"><p><a name="late">Delayed retirement increases benefits</a></p></td>
<td class="grayruled-td"><p><a name="drc"><i>Delayed retirement
credit</i></a> is generally given for retirement after the normal retirement age.
To receive full credit, you must be <a href="../ProgData/insured.html">insured</a> at your
normal retirement age. No credit is given after age 69. </p>
<p><b>If you retire before age 70, some of your delayed retirement credits will not
be applied until the January after you start benefits.</b> The
<a href="#calculator">calculator below</a> gives you the amount with all credits
applied for comparison purposes.</p>
<p>
Delayed retirement credits increase a retiree's benefits.
The <a href="#drcTable">table below</a> shows the delayed retirement credit by
year of birth. </p>
</td>
</tr>
<tr valign="top">
<td width="25%" class="whiteruled2-td"><a name="calculator">
<p>Compute the effect of early or delayed retirement</a></p></td>
<td class="grayruled2-td">
<p>
If you enter your date of birth and the effective month for beginning your benefits,
we will tell you the effect of early or delayed retirement as a percentage of
your primary insurance amount. Please note that benefits are generally paid in the
month following the effective month.
<form name="age">
<blockquote><p>Enter your date of birth
(<label for="month">month</label>/<label for="day">day</label>/<label for="year">year</label> format):<br />
<input type="text" name="month" size="1" maxlength="2" id="month" value="6">/
<input type="text" name="day" size="1" maxlength="2" id="day" value="15">/
<input type="text" name="year" size="3" maxlength="4" id="year" value="1960">
</p>
<p>Enter the effective month and year for which you would like to begin receiving benefits:<br />
<input type="text" name="drawmon" size="1" maxlength="2" id="drawmon" value="12">/
<input type="text" name="drawyr" size="3" maxlength="4" id="drawyr" value="2025">&nbsp;
<b><small>You must be at least age 62 to begin receiving benefits.</small></b>
<p><input name="button" type="button" onclick="calc();" value="Compute">
</blockquote>
<p><label for="new">The month you will reach your normal retirement age</label>
is <input type="text" readOnly size="14" maxlength="14" name="nrastring" id="new">.<br />
Effect of your retirement choice on your benefit:<br /><label for="output">
<textarea readOnly rows="6" cols="60" name="textoutput" wrap="virtual" id="output">
</textarea></label>
</form>
<script language="JavaScript">
var message = '';
var birthyear = 0;
var birthmonth = 0;
var birthday = 0;
var drawmonth = 0;
var drawyear = 0;
var months = ['January','February','March','April','May','June','July',
'August','September','October','November','December'];
function calc() {
message = '';
var check1 = birthCheck();
var check2 = true;
if (check1) {
check2 = drawCheck();
}
if (check1 && check2) {
if (birthday == 1) {
birthday = 30;
birthmonth--;
if (birthmonth == 0) {
birthmonth = 12;
birthyear--;
}
}
var nra99 = nra(birthyear,birthmonth); // # of months after 1999 when attains NRA
var desire99 = desire(); // # of months after 1999 for specified retirement month
var age62mon = nra99 - (birthmonth + (birthyear + 62 - 1999)*12);
var minage = 62;
if (birthday != 2) {
age62mon--;
minage = '62 and one month';
}
var age70mon = birthmonth + (birthyear + 70 - 1999)*12 - nra99;
var delta = desire99 - nra99;
var nummon = Math.abs(delta); // number of months relative to NRA
var correction = '';
var str1 = 'You choose to receive benefits ';
var str2 = ' you reach your normal retirement age. ';
var str3 = ' Your benefit will be ';
var str4 = ' percent of your primary insurance amount.';
var change = 0;
var relative = 'when';
if (delta < 0) {
relative = nummon + ' months before';
if (nummon > age62mon) {
nummon = age62mon;
correction = ' However, you can not retire before age '+minage;
correction += ', when your benefit will be reduced for '+age62mon;
correction += ' months of early retirement. ';
}
if (nummon > 36) { change = 20 + (nummon - 36) * 5 /12; }
else { change = nummon * 5 /9; }
change = 100 - Math.floor(change * 100 + .5) / 100;
change = Math.floor(change * 100 + .5) / 100;
} else if (delta > 0) {
relative = nummon + ' months after';
var drc = (Math.floor((birthyear-1924)/2-.1) + 1) / 2 + 3;
if (birthyear < 1924) { drc = 3 }
else if (birthyear > 1942) { drc = 8 }
if (nummon > age70mon) {
nummon = age70mon;
correction = ' However, because delayed retirement credits do not apply after ';
correction += 'age 70, your benefit will be increased only for ' + age70mon;
correction += ' months of delayed retirement. ';
}
change = nummon * drc / 12 + 100;
change = Math.floor(change * 100 + .5) / 100;
} else {
change = 100;
}
message = str1 + relative + str2 + correction + str3 + change + str4;
}
document.age.textoutput.value = message;
}
function birthCheck() {
var date_format = /^(\d{1,4})$/;
var matchArray = document.age.year.value.match(date_format);
if (matchArray == null) {
message = 'Your birth year is entered in a wrong format. Please check to make sure you ';
message += 'have not entered any extra spaces or symbols.';
return false;
}
birthyear = parseInt(matchArray[1], 10);
if (birthyear < 100) {
birthyear += 1900;
}
matchArray = document.age.month.value.match(date_format);
if (matchArray == null) {
message = 'Your birth month is entered in a wrong format. Please check to make sure you ';
message += 'have not entered any extra spaces or symbols.';
return false;
}
birthmonth = parseInt(matchArray[1], 10);
matchArray = document.age.day.value.match(date_format);
if (matchArray == null) {
message = 'Your birth day is entered in a wrong format. Please check to make sure you ';
message += 'have not entered any extra spaces or symbols.';
return false;
}
birthday = parseInt(matchArray[1], 10);
if (birthyear < 1917) {
message = "Birth year must be 1917 or later.";
return false;
}
if (birthday < 1 || birthday > 31) {
message = 'Birth day must be between 1 and 31.';
return false;
}
if (birthmonth < 1 || birthmonth > 12) { // check month range
message = 'Birth month must be between 1 and 12.';
return false;
}
if (birthday == 31 && (birthmonth == 4 || birthmonth == 6 ||
birthmonth == 9 || birthmonth == 11)) {
message = months[birthmonth - 1] + " doesn't have 31 days!";
return false;
}
if (birthmonth == 2) { // check for february 29th
if ((birthday == 29 && !isleap(birthyear)) || birthday > 29) {
message = "February " + birthyear + " doesn't have " + birthday +
" days!";
return false;
}
}
return true;
}
function drawCheck() {
var date_format = /^(\d{1,4})$/;
var matchArray = document.age.drawyr.value.match(date_format);
if (matchArray == null) {
message = 'Your retirement year is entered in a wrong format. Please check to make ';
message += 'sure you have not entered any extra spaces or symbols.';
return false;
}
drawyear = parseInt(matchArray[1], 10);
if (drawyear < 100) {
drawyear += 2000;
}
matchArray = document.age.drawmon.value.match(date_format);
if (matchArray == null) {
message = 'Your retirement month is entered in a wrong format. Please check to make ';
message += 'sure you have not entered any extra spaces or symbols.';
return false;
}
drawmonth = parseInt(matchArray[1], 10);
if (drawyear <= birthyear) { // check year range
message = 'Retirement year must be after birth year.';
return false;
}
if (drawmonth < 1 || drawmonth > 12) { // check month range
message = 'Retirement month must be between 1 and 12.';
return false;
}
return true;
}
function isleap( year ) {
return (year % 4 == 0 && (year % 100 != 0 || year % 400 == 0));
}
function desire() {
return drawmonth + (drawyear - 1999)*12;
}
function nra(yob,mob) { // computes number of months of early or late retirement
var nrayr = 65;
var nramon = 0;
if (yob >= 1943 && yob <= 1954) { nrayr = 66 }
if (yob > 1959) { nrayr = 67 }
var transition = [1938,6502,1939,6504,1940,6506,1941,6508,1942,6510,1955,6602,1956,6604,1957,6606,1958,6608,1959,6610];
if ((yob > 1937 && yob < 1943) || (yob > 1954 && yob < 1960)) {
var index = 1;
for (var i = 0; i < 20; i+=2) {
if (transition[i] == yob) { index = i + 1 }
}
var tmp = String(transition[index]);
nramon = Number(tmp.substr(2,2));
nrayr = Number(tmp.substr(0,2));
}
nrayr += yob;
nramon += mob;
if (nramon > 12) {
nramon -= 12;
nrayr++;
}
document.age.nrastring.value = months[nramon - 1] + ' ' + String(nrayr);
return nramon + (nrayr - 1999)*12;
}
</script>
</td>
</tr>
<tr valign="top">
<td width="25%" class="whiteruled-td"><a name="drcTable"></a>
<p>Annual delayed retirement credit percentage
varies from 3% to 8% by year of birth</p></td>
<td valign="bottom"class="grayruled-td" align="center">
<table width="80%" border="0" cellspacing="0" cellpadding="0" summary="DRC table">
<caption><b>Delayed retirement credit</b></caption>
<tr><th align="left" scope="col" class="blackruled-td">Year of birth</th>
<th scope="col" class="blackruled-td">Credit per year</th></tr>
<tr align="left" valign="bottom">
<td>1917-24</td><td align="center">3.0%</td></tr>
<tr align="left">
<td valign="bottom">1925-26</td><td align="center">3.5%</td></tr>
<tr align="left">
<td valign="bottom">1927-28</td><td align="center">4.0%</td></tr>
<tr align="left">
<td valign="bottom">1929-30</td><td align="center">4.5%</td></tr>
<tr align="left">
<td valign="bottom">1931-32</td><td align="center">5.0%</td></tr>
<tr align="left">
<td valign="bottom">1933-34</td><td align="center">5.5%</td></tr>
<tr align="left">
<td valign="bottom">1935-36</td><td align="center">6.0%</td></tr>
<tr align="left">
<td valign="bottom">1937-38</td><td align="center">6.5%</td></tr>
<tr align="left">
<td valign="bottom">1939-40</td><td align="center">7.0%</td></tr>
<tr align="left" valign="bottom">
<td>1941-42</td>
<td align="center">7.5%</td></tr>
<tr align="left" valign="bottom">
<td class="blackruled-td">1943 and later</td>
<td align="center" class="blackruled-td">8.0%</td></tr>
<tr align="left">
<td colspan="2"><small>Note:
Persons born on January 1 of any year should refer to the credit percentage
for the previous year.</small></td></tr>
</table></td>
</tr>
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<td width="25%" class="whiteruled-td">More information</td>
<td class="grayruled-td">A table illustrates the complex
<a href="../ProgData/ar_drc.html">interaction among normal retirement age,
actuarial reduction, and delayed retirement credit</a>.</td>
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