Will stopping work 5 years before claiming Social Security at 62 reduce my retirement benefits?

Thanks for explaining! So since I've only worked 30 years, I'd have those 5 zeros counted whether I stop working at 57 or not? Is there any way to estimate how much those zeros will reduce my benefit compared to if I worked until 62?

That could be because she claimed early at 62 though, not just because she stopped working. Each year you wait after 62 increases your benefit by like 8% until 70. So claiming at 62 versus 65 makes a big difference too.

This is incredibly helpful, thank you! I didn't realize the timing of the zero years doesn't matter - that makes me feel better. I'll definitely set up that SSA account to run some calculations. I understand I'm taking a reduction by claiming at 62, but I've factored that into my overall retirement plan. My main concern was those 5 years of zeros potentially causing an additional unexpected reduction.

That's a really good point about the indexing stopping at age 60! Many people miss this detail. However, if the poster's earnings have plateaued and they're not expecting significant raises beyond inflation in those final years, the impact may be minimal. But absolutely something to consider in the calculations.

But did you work for 35+ years before stopping? That's the key factor here. If someone already has 35+ years of good earnings, then stopping 5 years before claiming won't affect the calculation much since they're only using the top 35 years anyway.

No, I only worked about 28 years total because I stayed home with kids for a while. So I had 7 zeros in my calculation. You're right that's probably why mine was so low compared to what I expected.

I'm actually divorced after a 15-year marriage, so I think I might qualify for ex-spousal benefits. My ex will probably wait until FRA to claim though, so I'm not sure how that affects when I could get those benefits. Something else I need to research!

does that actually work?? i tried calling SSA like 5 times last month and kept getting disconnected after waiting forever

Yes, it worked for me. I was skeptical too but was desperate after multiple disconnects. The SSA rep I finally spoke with was actually really helpful and ran different retirement scenarios for me showing exactly how my benefit would change based on when I stopped working and when I claimed.

Your cousin is incorrect. Social Security uses your highest 35 years of earnings (adjusted for inflation), not just the last 5 years. This is a common misunderstanding. Some people confuse Social Security with certain pension plans that might use your last few years or highest few years of earnings.

Thanks for mentioning this! I was actually planning to be completely retired with no work at all after 57, but this is good to know in case I change my mind and want to pick up some part-time work after claiming benefits.

This is such a helpful way to think about it! I hadn't considered calculating the actual break-even point in terms of total lifetime benefits. You're absolutely right about the healthcare costs too - I've been so focused on the Social Security piece that I may have underestimated what health insurance will cost me from 57-65 before Medicare kicks in. That could be a significant expense that affects whether I can actually afford to stop working at 57. Do you have any suggestions for estimating those healthcare bridge costs?

For healthcare costs between 57-65, you'll likely need to look at ACA marketplace plans since you won't have employer coverage. Depending on your state and income level during those years, you might qualify for premium subsidies - but this gets tricky if you have significant retirement savings that generate income. A rough estimate is $800-1500/month for decent coverage for a single person in their late 50s/early 60s, but it varies wildly by location. Some states have much higher premiums. You'll also want to factor in higher deductibles and out-of-pocket maximums compared to typical employer plans. One strategy some people use is working part-time just for health benefits, or looking into healthcare sharing plans (though those have their own risks). Definitely run some quotes on healthcare.gov to get a realistic picture for your area before finalizing your retirement timeline.

For healthcare costs from 57-65, you'll likely need to look at ACA marketplace plans since you won't have employer coverage. Depending on your state and income during those years, premiums can range from $400-1200+ per month for decent coverage, plus high deductibles ($3000-8000+). If you have significant retirement savings generating income, you might not qualify for premium subsidies. Also consider COBRA from your employer for the first 18 months - sometimes that's cheaper than marketplace plans. I'd suggest getting quotes now from healthcare.gov using different income scenarios to budget accurately. This could easily add $50,000-100,000 to your 5-year bridge costs.

For healthcare costs from 57-65, you'll likely need ACA marketplace coverage which can be pricey. Based on my research when I was planning something similar, expect $800-1500+ per month for a decent plan depending on your state and health status. Some strategies to consider: 1) COBRA from your last employer (up to 18 months), 2) ACA marketplace plans (may qualify for subsidies if your retirement income is low enough), 3) Healthcare sharing ministries (cheaper but limited coverage), or 4) Short-term medical plans (gaps in coverage). Also budget for dental/vision separately since many plans don't include comprehensive coverage. I'd recommend getting quotes from healthcare.gov for your zip code to get realistic numbers for your planning.

For healthcare costs from 57-65, you'll likely need ACA marketplace coverage since COBRA typically only lasts 18 months. Depending on your state and income level, premiums can range from $400-1200+ per month for decent coverage, plus high deductibles. At 57, you might also want to budget extra for potential health issues that become more common in your late 50s/early 60s. I'd suggest getting quotes from healthcare.gov using your projected retirement income to get realistic numbers. Also consider that if your early retirement income is low enough, you might qualify for premium subsidies, but you'll need to be careful about asset withdrawal strategies since those count as income too.

For healthcare bridge costs from 57-65, you'll likely be looking at ACA marketplace plans since you won't have employer coverage. Depending on your state and income during those years, premiums could range from $400-1200+ per month for decent coverage. Since you'll have no earned income from 57-62, you might qualify for premium tax credits that could significantly reduce costs - but this depends on your other income sources (retirement account withdrawals, etc.). I'd suggest using healthcare.gov's plan finder tool and plugging in different income scenarios to get realistic estimates. Also factor in that without employer contributions, you'll be paying the full premium yourself. COBRA from your last employer might be an option for 18 months but is usually expensive since you pay the full premium plus admin fees.

For healthcare bridge costs, I'd recommend checking healthcare.gov to get quotes for ACA marketplace plans in your area - premiums can vary wildly by state and income level. Since you'll have no employment income from 57-62, you might actually qualify for substantial subsidies that could make coverage much more affordable than you think. Also look into short-term COBRA from your employer if available, and consider Health Savings Account funds if you have an HSA. Some people also explore part-time work specifically for health benefits during this bridge period. The key is to get actual quotes rather than guessing - I was shocked at how much lower the subsidized marketplace premiums were compared to what I expected to pay.

For healthcare costs between 57-65, you'll likely need to look at ACA marketplace plans since you won't have employer coverage. Premium costs vary widely by location and income, but you could easily be looking at $800-1500+ per month for decent coverage, plus deductibles and out-of-pocket costs. Since you'll have no W-2 income during those years, you might qualify for premium subsidies based on your modified adjusted gross income (which would include things like 401k withdrawals, investment income, etc.). I'd recommend using the healthcare.gov calculator to get estimates for your area and expected income level. Also consider that if you're doing Roth conversions or taking large distributions from retirement accounts during those gap years, it could push you over subsidy thresholds. COBRA from your last employer might bridge you for 18 months, but that's usually expensive since you pay the full premium plus administrative fees.

For healthcare bridge costs, I'd suggest getting quotes from your state's ACA marketplace (healthcare.gov) to see what individual plans would cost at your expected income level during those gap years. Since you won't have employer coverage, you'll likely be looking at $800-1500+ per month depending on your state and the plan you choose. Also consider COBRA from your current employer - you can extend your current coverage for up to 18 months after leaving, though you'll pay the full premium plus a 2% admin fee. This might be more expensive than ACA plans but could provide continuity with your current doctors. Don't forget to factor in that your lower income during those 5 years might qualify you for premium tax credits on ACA plans, which could significantly reduce your costs. You can use the Kaiser Family Foundation's subsidy calculator to estimate this.

For healthcare bridge costs from 57-65, you'll likely need ACA marketplace coverage which can be expensive without employer subsidies. In my area, decent coverage for someone in their late 50s runs $800-1,200+ per month. A few things to research: 1) Look up ACA marketplace plans in your state to get actual premium estimates for your age bracket, 2) Consider if you qualify for any subsidies based on your retirement income level (this gets tricky with asset withdrawals), 3) Factor in higher deductibles and out-of-pocket maximums compared to employer plans, 4) Some people use short-term medical or healthcare sharing ministries as cheaper alternatives, though coverage is more limited. You might also want to look into whether your current employer offers COBRA continuation - it's usually expensive but sometimes less than marketplace plans. Healthcare.gov has a cost estimator tool that might help with initial planning.

For healthcare bridge costs from 57-65, you'll likely be looking at ACA marketplace plans which can range from $400-1200+ monthly for decent coverage depending on your area and income level. Since you won't have employer-sponsored insurance, you might qualify for premium tax credits if your income is low enough during those years. COBRA from your last employer could be an option for 18-36 months but is usually expensive. Some people also consider short-term medical plans or healthcare sharing ministries, though these have coverage limitations. I'd recommend getting quotes from healthcare.gov for your zip code and projected income to get realistic numbers for your planning.

For healthcare bridge costs from 57-65, here are some ballpark figures to help with your planning: ACA marketplace plans typically run $800-1,500/month for a single person depending on your state and income level. Since you'll have no earned income, you might qualify for premium tax credits that could significantly reduce this cost - potentially down to $200-400/month for a silver plan. COBRA from your employer might be an option for the first 18 months, but it's usually expensive (often $600-1,200/month) since you pay the full premium plus admin fees. Some people use short-term medical plans or healthcare sharing ministries as cheaper alternatives, but these have significant coverage gaps and aren't ACA-compliant. Don't forget to budget for out-of-pocket costs too - even with insurance, you might face $3,000-8,000 annually in deductibles and copays depending on your health needs. I'd recommend getting quotes from your state's ACA marketplace and seeing what subsidies you'd qualify for based on your projected retirement income. Healthcare.gov has a subsidy calculator that can help you estimate costs more precisely.

For healthcare bridge costs from 57-65, here are some ways to estimate: 1) Check ACA marketplace plans in your area - premiums for someone in their late 50s can range from $600-1500+/month depending on coverage level and subsidies. 2) Look into COBRA from your current employer if available (usually 18 months max). 3) Consider short-term medical or healthcare sharing ministries as temporary options. 4) Factor in that you'll likely pay full price without employer subsidies. A rough estimate might be $8,000-18,000 per year just for premiums, plus deductibles and out-of-pocket costs. Definitely get actual quotes before finalizing your timeline!

For healthcare costs from 57-65, you'll likely be looking at ACA marketplace plans since you won't have employer coverage. Premiums can range from $400-1200+ per month depending on your location, income, and coverage level. Don't forget about deductibles and out-of-pocket maximums too - even "bronze" plans can have $6000+ deductibles. A rough estimate is to budget $8,000-15,000 per year for healthcare costs during those bridge years, but it varies hugely by state and health status. You can get actual quotes on healthcare.gov by entering your projected retirement income to see what subsidies you might qualify for. Some early retirees deliberately keep their income low enough to get substantial ACA subsidies, which is another planning consideration.

For healthcare bridge costs, I'd suggest getting quotes from your state's ACA marketplace (healthcare.gov) to see what individual plans would cost at your projected income level during those gap years. Since you won't have W-2 income from 57-62, your modified adjusted gross income might be low enough to qualify for premium tax credits, which could significantly reduce costs. You might also want to look into short-term medical plans or healthcare sharing ministries as alternatives, though they have different coverage rules. Don't forget to factor in dental and vision coverage too - those are often separate. A rough estimate I've seen is $800-1500/month for decent coverage for someone in their late 50s, but it varies wildly by state and your health status. The ACA marketplace calculator can give you a more accurate picture based on your specific situation.

For healthcare bridge costs from 57-65, I'd suggest getting quotes from your state's ACA marketplace (healthcare.gov) to see what individual plans would cost at your income level during those years. Also look into COBRA from your current employer - you can usually extend it for 18 months, sometimes 36 months in certain situations. Another option many early retirees use is short-term medical plans or healthcare sharing ministries, though these have more limited coverage. Some people also consider moving to states with lower healthcare costs or even overseas for part of their early retirement. I'd budget at least $800-1500/month for decent coverage during those gap years, possibly more depending on your health needs and location. Don't forget about dental and vision coverage too since those are often separate. This could easily add $50,000+ to your early retirement budget, so definitely factor it in!

For healthcare bridge costs, I'd suggest getting quotes from healthcare.gov for ACA marketplace plans in your area. Since you'll have no income from 57-62, you might qualify for premium subsidies that could significantly reduce costs. Also look into short-term health plans and COBRA if you're leaving an employer with benefits. Many people are shocked to find individual health insurance can cost $800-1500+ per month for decent coverage. Don't forget to factor in higher deductibles too - you might want to build extra savings specifically for medical expenses during those gap years.

For healthcare bridge costs, I'd suggest getting quotes from your state's ACA marketplace (healthcare.gov) to see what individual plans would cost at your expected income level during those gap years. Also look into COBRA from your current employer - you can usually extend that for 18-36 months depending on circumstances. Some people also consider short-term medical plans, though these have limited coverage. Don't forget to factor in potential premium increases over those 8 years (ages 57-65) since healthcare costs typically rise faster than general inflation. A rough estimate might be $800-1500/month for decent coverage, but it varies hugely by state and health status.

For healthcare costs from 57-65, you'll likely be looking at ACA marketplace plans since you won't have employer coverage. Depending on your state and income during those years, premiums could range from $400-1200+ per month for decent coverage, plus deductibles and copays. Since you'll have zero income from 57-62, you might qualify for significant premium subsidies through the marketplace - possibly even free coverage if your income is low enough. However, you'll need to be careful about how you structure withdrawals from retirement accounts, as those count as income for subsidy purposes. Some people do Roth conversions during low-income years to take advantage of lower tax brackets, but that could affect your healthcare premium subsidies. I'd recommend using the healthcare.gov calculator with different income scenarios to get a better estimate for your specific state.

For healthcare costs from 57-65, you'll likely be looking at ACA marketplace plans since you won't have employer coverage. Costs vary widely by state and income level, but you could be looking at $800-1500+ per month for decent coverage, especially at that age. The good news is that if your retirement income is low enough, you might qualify for premium subsidies. I'd suggest using healthcare.gov's cost estimator tool and plugging in your expected retirement income to get a realistic estimate. Also consider whether your current employer offers COBRA continuation coverage - it's usually expensive but sometimes cheaper than marketplace plans for the first 18 months. Don't forget about potential out-of-pocket costs too, not just premiums!

For healthcare bridge costs from 57-65, I'd suggest checking healthcare.gov to get ACA marketplace quotes based on your expected retirement income. Without employer coverage, you're looking at potentially $800-1500+ per month for decent coverage, depending on your state and income level. Also factor in that ACA subsidies are based on your current year income - so if you have low income in retirement but high assets, you might still qualify for premium tax credits. COBRA from your last employer might be an option for the first 18 months too, though it's usually expensive. Don't forget dental and vision coverage either since those often aren't included in basic health plans. I'd budget at least $12,000-18,000 per year just for health insurance, and that's before any actual medical expenses.