Normal retirement age for SS

[old woman]

I keep seeing people talk about the normal retirement age as the age they should retire. To me that seems exactly the worse time to retire. After your NRA you can work and collect SS so the money earned after that age doesn't effect your benefit. Earlier retirement means a smaller check but later up to 70 means a larger check so anywhere between 62-70 is on a scale.
Does anyone see any reason at all to pick normal retirement age as a age to retire? I can see it as a age to keep working and start collecting SS but not a retirement age. What am I missing?

[Dawg52]

I agree to a point. I saw no reason to work to the NRA. I retired at 52.

[Moemg]

If you start collecting Social Security at 62 you are limited to earning $12,000 a year .After that Social Security cuts your benefit by $1.00 for every $2.00 you make .

[kaudrey]

Hi,

Well, I'm not sure what people you are "seeing" talking about this, but it won't be most of the people here.

Many people use the NRA from SS as their retirement age because they don't have enough money to live on without SS, so they can't retire before then.

You say, "I can see it as a age to keep working and start collecting SS but not a retirement age."

This sentence doesn't make sense to me. If you working, you are not retired. I don't get the distinction you are trying to make here. Yes, you can collect SS while working, but if you make too much, you will be penalized.

I don't think you are missing anything except the fact that the majority of the population can't retire early because they don't have the money, and will be relying on SS to fund a significant portion of their retirement.

[Nords]

Quote:

Originally Posted by kaudrey This sentence doesn't make sense to me. If you working, you are not retired. I don't get the distinction you are trying to make here. Yes, you can collect SS while working, but if you make too much, you will be penalized.

If you start taking SS before NRA and while working, SS will take away some of your benefits. Of course that depends on the amount of your income but it's a pretty low threshold.

If you start taking SS after NRA and keep working, SS will no longer take away any of your benefits.

Of course the IRS is a completely separate benefit-taxing authority that will tax any SS benefits when citizens have "too much" income... and whether or not they're actually working.