Retiring early has its pros and cons. According to official data from the Social Security Administration (SSA) as of December 2024, a person earning an average salary who applies for early retirement at age 62 receives approximately $1,342 per month. This represents a 30% reduction in the total benefit.
U.S. citizens can retire at age 67 and receive the full payment of $2,000
Each case is different; circumstances vary regarding the total income that can be received at the end of the month, whether due to the type of work, hours worked, withholding percentages, etc. U.S. citizens can retire at age 67 and receive the full payment of two thousand dollars. If they decide to remain in the workforce until they reach age 70, they will accumulate a larger pension benefit, and if they retire early, at age 62, the amount will be lower.
For example, citizens born in 1959 are the last retirees who can reach full retirement age before turning 67. For example, if you delay your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit.
The increase in the Full Retirement Age (FRA), which will now be 67
By 2025, if a person is 67 years old, they will receive $4,018, the maximum benefit. If they retire early, at age 62, it will be approximately $2,831, which represents 30% less than the full benefit, and if they are 70, it will be $5,108. Social Security is an economic pillar for millions of older adults. According to the Center on Budget and Policy Priorities (CBPP), it keeps approximately 16 million people age 65 and older out of poverty. This is why many families are concerned about the new increase in the retirement age.
As we’ve previously reported, the changes to the United States Social Security program that will be implemented in 2025 are especially relevant for those born in 1960 or later. The most notable measure of this evolution is the increase in the Full Retirement Age (FRA), which will now be 67. The idea is to increase the retirement age exponentially until reaching that figure.
New York is among the most expensive states in the United States to retire
A 2025 study revealed that American adults believe they need around $1 million to retire and have a comfortable life at age 65. New York is among the most expensive states in the United States to retire without suffering financial setbacks. The cost of living index in this jurisdiction is 123.4, which means the price level is 23.4% higher than the national average.
How to apply for the retirement income, step by step
To properly apply for retirement income, the best way is to go to the SSA website. According to their details, applications can be made entirely online or by appointment at the office nearest the applicant. Hours are Monday through Friday, 8 a.m. to 7 p.m., and they can arrange for follow-up by phone.
The documents required are: a Social Security card or a record of the number; proof of U.S. citizenship or legal status in the country if the applicant is a non-U.S.-born immigrant; an original birth certificate and a certified copy from the issuing entity, or any document proving the petitioner’s age; a copy of a military discharge if the applicant served before 1968; and a copy of a W-2 form or prior year’s self-employment tax return.
It’s important to remember to be well-informed to make the decision that best suits your needs. It’s also important to keep in mind that enrollment in the Medicare health program must be completed at least three months before turning 65, regardless of whether you intend to retire at that time. Failure to do so may result in surcharges on monthly premiums for both insurance and prescription drug coverage.
