TITLE

The Effect of Retirement Under Social Security at Age 62

AUTHOR(S)
Muksian, Robert
PUB. DATE
January 2004
SOURCE
Journal of Financial Planning;Jan2004, Vol. 17 Issue 1, p64
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
According to the 2000 U.S. Census, approximately 2.5 million people will turn 62 in 2004. The first eligible age for elective retirement under Social Security is age 62, and those who are eligible to retire with such benefits maybe making a decision as to whether to retire and take Social Security benefits. There are three basic retirement concepts under Social Security--early, normal and delayed. In 1956 and 1961 the Social Security Act was amended to entitle female and male workers, respectively, whose wages are taxed under the Federal Insurance Contributions Act of 1936 to retire at age 62. In 1977, Congress changed the method by which a worker's benefit would be determined from using an average monthly wage to an average indexed monthly wage (AIME). The spouse of a retired worker is entitled to spousal benefits if the spouse has not earned enough quarters of coverage to qualify for his or her own benefit. Unless retirement at 62 becomes mandatory due to disability, the rationale for early retirement is objective. Every year that the primary worker delays past age 62 will, normally, result in an increased AIME, primary insurance amount and final benefit. INSET: Executive Summary.
ACCESSION #
11917845

 

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