Whether or not you may receive your retirement benefits early depends on the specifics of the benefits you are to receive. For information about your employer's plan, examine the rules set forth by your company for pensions. Regarding social security, you may be able to receive benefits before your 65th birthday, but those retirement benefits are likely to be reduced if you are retiring prior to the standard retirement age.
Will my employee pension benefits be affected by my retirement age?
If you are lucky enough to have pension benefits through your employer, whether or not you are able to retire before 65 will depend on the provisions in your plan. If your plan is a defined benefit plan, you may not be able to start receiving benefits until age 65. Many plans provide for payment of pension benefits at an earlier age, but these plans frequently reduce the amount of the monthly benefit to reflect the fact that you are receiving the benefits sooner.
How will my retirement age affect my social security benefits?
Social security retirement benefits may also be available to those who are not 65 years of age at the date of retirement. To calculate your standard social security benefit, you will generally use a formula to calculate your Primary Insurance Amount, or PIA. You will then use the best 35 years of income and average out the monthly earnings for the 35 years. The final formula typically results in a monthly benefit amount reflective of 25 to 45% of the monthly average after adjusting for inflation.
However, if you are planning to retire before the age of 65, these benefits will be reduced. The amount of the reduction will depend on your specific age at retirement as well as several other factors, so you should consult with a lawyer prior to retiring early in order to get a complete understanding of what benefits you may have.