As the baby boomer generation approaches retirement, the question for many becomes when is the ideal time to retire?
This is maybe the most common question asked to Social Security representatives because of the amount of benefits they can receive from Social Security. Jack Myers explains the earliest you can draw your retirement benefits is age 62.
If you chose to draw from retirement at age 62, there is an annual earnings tax. Myers says if you are working, earnings are limited to just over $14-thousand. If you are over the limit, there is a chance part of that money would have to be paid back to Social Security.
Another big factor of deciding when to retire is having benefits reduced. Myers explains drawing benefits before the full retirement age of 62 reduced your benefits permanently. Reductions can be up to 30%.
Myers says though each case is different and it all depends on each individuals situation. Myers encourages individuals considering retirement to visit their website and use their retirement estimator to get a rough idea of what they could receive for benefits. He also notes it is never a bad idea to sit down with a Social Security representative and listen to some of the details they have. Ultimately though it is the decision of each individual based on their circumstances.