FRA - is an age that Social Security removes any restrictions on income that you can earn. In addition you can keep on working and collect even more until you reach the mandatory retirement age which at that point you will start collecting whether you like it or not.
The following is my personal thoughts on one of the most discussed topics full of misinformation and "expert" opinions. I mean, "the people" need something to debate right? We over complicate things though.
I see it this way.
1. You can afford to retire or not at age 62 if retirement is on your mind
2. You enjoy working and dont really want to retire yet
Everything else is just "static" in my view of things. Trust me, I did go through the same thought process of all thoughts and forums and research and after all is said and done it comes down to the first two questions #1 & #2 above.
Me? I retired at age 63, took a part time 25 hour job in a bank because I love working with people, I just didnt want to work so hard plus my wife has a few years to go until the same age.
In addition I didnt want the drain of paying health insurance for two years. So, the bank paid all my health insurance, paid holidays and PTO which equaled 5 weeks PTO with weekends off, 5 hours a day, got to meet and talk with the public. Perfect for me.
On top of that, I didnt need the money really and did the maximum bank 401k contributions every week. I cant remember how much it was but I THINK almost or at 50%. IN addition because I broke the SS earning threshold they started taking $1 for every dollar I made. Big deal. What some do not realize is you get that money back. I will be honest and have not examined exactly how, I didnt care. But I do know once fully retired SSA contacted me through the mail, reformulated my SS monthly SS income check to a higher amount than I was receiving because of working longer.
I mean, you either can retire, want to retire or cannot retire is all that needs to be thought about. Social Security is NOT a retirement account it is SUPPLEMENTAL INCOME to what you should have saved.
Forget the static of people, advisors, the media saying your leaving money on the table, baloney I say. Everyone wants to be famous and get their name in print. You're not leaving anything on the table anymore than when you gave up your job to retire. The only way to leave money on the table is if you die. Then you, your family misses out on all that income. Start collecting 5 years early (If you can) and that is 5 years of income that you could be banking or enjoying life at a time that you can still enjoy it or wait until 67 and hope you live to 80 before you start to break even in the money you got out of Social Security because you didnt start collecting at 62.
Think about that in numbers, the average check is $1,770 a month and many of us are above that amount but lets use $1770.
That is $106,200 that you collected from Social Security if you retired at age 62 vs $0.00 if you retired at age 67. Pick and choose, options are great!
You can do it or not.
Retire at 62 or 67 what is the difference? to me just one difference. Paid for health insurance through Medicare that kicks in at 65. Other than that. Start collecting at 62 (in my case 63) AND big deal, someone who waits to 67 will not break even in Social Security payments with the person that retires at 62 until they get close to 80 years old. SO bottom line you either want to or can afford to retire or not. If money was the subject, why not just keep working, bank the money and not worry about the Social Security payout.