Not so fast!! Doing so may significantly impact your retirement lifestyle.
Retiring at 62 instead of 67 (full social security retirement age for many of us) reduces:
- your social security benefits by 25%.
- spousal benefits by 35%
- cost of Living Adjustments (COLA) thereafter
- spousal death benefits
Additionally, once you leave your pre-retirement employer, you may never be able to regain the same level of pay and benefits. In addition to losing the direct compensation, you may give up the ability to further save on a pre-tax basis (including potential catch up contributions) and lose healthcare benefits at a point in your life where your costs are likely to be their highest. The average cost of healthcare for those aged 55 – 64 has been estimated at nearly $12,000.
If you and your spouse wait until age 67, the cash value could be worth hundreds of thousands to you in retirement.
Click here to estimate Social Security benefits at different ages.