Will it affect my Social Security if I stop working before I am 62?

Congratulations on your early retirement! But before you make your final decision, take a look at your Social Security statement and read the fine print on the page with your estimated benefits.

Under Retirement, it says "At your current earnings rate, if you stop working and start receiving benefits at age 62, your payment would be about....." and then lists an amount.

Below that, it says "If you continue working until age 66 (or your full retirement age if different), or until age 70, your payment would be about...." and lists those amounts.

So what happens if you stop work at 55? If you have at least 10 years (40 credits) of work, you will qualify for a retirement benefit but it will be less than if you continued working longer. Since your retirement benefit is based on your highest 35 years of earnings under Social Security, retiring before age 62 will leave you with a lower retirement benefit than shown on your statement.

But there are also other consequences of retiring early. If you become disabled due to a serious accident, injury or illness, you may not be eligible for Social Security disability payments if you have not worked at least 5 years during the 10 years before you become disabled. As long as you have at least 40 credits, you will still be eligible for retirement benefits at 62 but a disability benefit is usually higher because it is not reduced for your age and could entitle you to Medicare before age 65.