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Percentage Deduction for Early Retirement
According the the annual social security statement I just received, the estimated benefit at age 63 is only 15.9% less than the estimated benefit at age 66. I would have expected a 20% deduction.
I then went on line and used the benefit calculator to double check the numbers. In this case, the age 63 benefit was only 15.4% less than the full benefit amount. Further, I ran scenarios starting benefits at 64 and 65. The deductions were 14.3% and 7.7% versus the expected 13.3% and 6.7%.
What am I missing? Have others observed similar discrepancies?
I will be turning 64 in November and am trying to decide when to begin collecting my social security benefit.
Updated : September 10, 2012 by Guest
- Estimated Retirement Benefit
- Amount of Retirement Insurance Benefit
- Adjustment of Reduction Factor at FRA
- Excess Income
- Disability Insurance Benefit Reduced for Age
- Spousal Benefits
- Entitlement to Retirement or Disability Insurance Benefits and Another Benefit
- Spousal Benefit
- Number of Additional Benefits Lost for Failure to Report on Time
- Does collecting survivor benefits affect my own account?
- How is the reduction amount computed?
- Survivor Benefit for spouse already receiving benefits
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