| One of the first things that anybody should know | | | | the rest of your life. Should you take this option |
| and understand is that Social Security benefits are | | | | you will find that your benefits will be reduced by |
| based on a person's earnings which are averaged | | | | five ninths of 1% for each of the months if you |
| out over a 35 year period and not as some are | | | | retire up to 3 years before the full retirement |
| led to believe based on their last 5 years of | | | | age. However if you retirement more than 3 |
| employment. In fact social security for early | | | | years before full retirement age then the |
| retirement will only provide a person with a base | | | | reduction each month will be five twelfths of 1%. |
| level income. Also it is important to remember | | | | So what this means is that should you decide to |
| that social security retirement benefits are | | | | retire when you are 62 then for the first 3 years |
| actually based on a person's income earned during | | | | (36 months) will be reduced by 20% and then the |
| their earning life rather than on what they will | | | | following 12 months it will be reduced by 5% so in |
| need when they retire. In order for this to be | | | | total your social security benefits will be reduced |
| calculated properly the Social Security | | | | by 25%. So if for example your full benefit should |
| Administration (SSA) keeps a record of all a | | | | be $1,200 you will in fact only receive $900. It |
| person's earnings over their working life. They | | | | should also be noted that if you do decide to |
| then pay the benefits to this person based on the | | | | retire early your social security benefit will be at |
| average amount that they have earned as long | | | | the reduced rate, plus with the cost of any living |
| as a minimum number of work credits have been | | | | adjustments added on for as long as you receive |
| accumulated during their working life. | | | | social security for early retirement. |
| However you can if you wish start to receive | | | | Hopefully the information provided above will give |
| these benefits from any time between the age | | | | you a better understanding of social security for |
| of 62 and the actual full retirement age of 67. | | | | early retirement and how it affects a person's life |
| However, if you decide to go this route you will | | | | after they have retired. |
| find that your monthly benefits will be reduced for | | | | |