Early Retirement Age Minimum

• You can apply for Social Security retirement as early as age 62. To qualify, you must have paid in to the system in the form of payroll taxes, which should have been deducted from your paycheck by your employer (or paid with your income tax, if you are self-employed). Social Security requires a minimum of 40 work credits, which as of 2011 were earned by paying Social Security taxes on $1,120 of earnings. You can earn four credits in a year, meaning, for most people, that you must work 10 years in order to qualify for Social Security retirement.
  
  

Reduced Benefits

• By taking early retirement, you reduce your benefits. At the age of 62, you lose about 25 percent of your full retirement benefit. What's more, that reduced benefit remains at the same level for the rest of your life. Your benefit does not increase when you reach full retirement age; however, you can "opt out" of early retirement if you choose, repay the benefits that you earned, and wait until you reach full retirement age to begin drawing benefits again.
  
  

Early Retirement and Disability

• Social Security also runs a program of disability insurance, which also is paid for with your payroll taxes. If you suffer from a medical condition that has lasted, or is expected to last, at least 12 months (or to result in your death), you may apply for disability insurance. Once you reach age 62, you would be well-advised to apply for disability instead of retirement if you find yourself unable to work. The disability benefit you earn will equal your full retirement benefit; in addition, if you win the claim, you will be entitled to back benefits, up to 12 months before you filed the application for disability.
  
  

Full Retirement

• If you choose not to apply for early retirement, you can wait until you reach full retirement age. Your benefit will increase and will remain at the higher level until your death. Full retirement age depends on the year you were born; the later this year is, the later your full retirement age (it maxes out at 67 years for those born in 1960 or later). The retirement benefit gradually increases the later you wait; if you wait until age 70 to retire, you earn an increased benefit. If you want to continue working and can support yourself comfortably on your wages, waiting for delayed retirement will be worth it. If you were born in 1943 or later, Social Security adds 8 percent for every additional year you work; in addition, the increased earnings will result in a higher calculation of your monthly benefit.