Should I retire at 62 or 65?

With the retirement age steadily drifting lower—most people now retire in their early 60s—here is a radical thought: Wait to retire.

As you know, Congress has raised the age at which you can receive full Social Security benefits. If you were born after 1937, you must now wait past your 65th birthday; the date continues to increase the more recently you were born. And if you were born after 1960, you must wait until you are 67 to get full benefits.

You still can apply early, but you’ll get less per month. For example, someone 43 or younger today who applies for Social Security benefits at age 62 will only get 70% of what they would have received at age 67.

The good news is, it can pay to wait. And the younger you are, the more you will benefit from putting off applying. The following table tells the story. Increases For Delayed Retirement Year of Birth Yearly Rate of Increase for waiting 1919—1924 3% 1925—1926 3.5% 1927—1928 4% 1929—1930 4.5% 1931—1932 5% 1933—1934 5.5% 1935—1936 6% 1937—1938 6.5% 1939—1940 7% 1941—1942 7.5% 1943 or later 8%