Finding out what the suitable retirement age is something that each person is going to want to take as an individual consideration. There are various factors that will change the age in which a person decides to retire. Some people would prefer to wait to retire until they could be eligible for their full retirement benefits, other people will retire when they are only eligible for partial retirement benefits. Then, there are some people that will retire even earlier than that because they either do not need to worry about retirement benefits because they are so well off or because they want to retire younger and have a spouse that still works or need to retire for health issues. There are so many different things that have an effect on the age at which people retire. A person should know what the standard rules are that accompany retirement and the age and what the full retirement age really is and what that entails.
When thinking of retirement planning, a person who was born in 1937 or before then will have a full retirement age of sixty five. This means that a person that falls within this category is eligible for the full benefits that come along with retirement at the age of sixty five. People who were born after 1937 are not eligible for the full benefits that come along with retirement until the age of sixty seven.
For a person who does not want to wait until the age of sixty seven to retire, there are options under which a person could retire earlier, but their benefits would be reduced by a certain percentage which would be contingent on the age at which they retired. For a person who retires at sixty two, the monthly benefit payment that a person receives is reduced by about thirty percent.
A person who retires at sixty three will have a twenty five percent reduction in benefit payments each month. A person who retires at the age of sixty four will have a twenty percent cut in their retirement benefits. A person who retires at the age of sixty five will have about a thirteen percent reduction in their retirement benefits and a person who retires at sixty six will have about a seven percent reduction in the retirement benefits that they receive.
Any spousal benefits that a spouse receives from a retirement benefit fund would be reduced a little bit more than it would for the person who retired for each year earlier than the age of sixty seven that a person retired.