No matter what your "full" retirement age is, you may start receiving benefits as early as age 62. However, if you start your benefits early, they are reduced five-ninths of one percent for each month before your "full" retirement age. For example, if your full retirement age is 65 and four months and you sign up for Social Security when you're 64, you will receive 91.1 percent of your full benefit. At age 62, you would get 80 percent.
The reduction will be greater for people born after 1938 as the full retirement age increases. For example, a person retiring at age 62 in the year 2003 will see a reduction of 23 percent. A person born in 1960 whose full retirement age will be 67 will see a 30 percent reduction when retiring at age 62.
There are disadvantages and advantages to taking your benefit before your full retirement age. The disadvantage is that your benefit is permanently reduced. The advantage is that you collect benefits for a longer period of time. Each person's situation is different, so make sure you contact Social Security before you decide to retire.
