I retired at 55 and will draw SS at my earliest time; 62.5. The difference between not paying into SS for those 7.5 years and working until 62.5 is only $100 a month on the SS check. Why you ask? Because those last years, while they would be my highest earning years, are also the shortest years SS has to invest that money. You see, SS ranks the years you have been paying in, with the early years being worth more than the later years. So even though you might have not been earning much back in 1970, those dollars have been invested in SS for 40 years or so. Compounding that interest year after year. SS awards you points for the years with a max # of points and a dollar amount based on your income, but capped. So, for most folks who have worked all their lives, there isn't much gain in SS for the last several years before you pull the plug on work. There is a calculator on SS site that will allow you to 'what if' for retiring and it includes the option of telling it that you earn zero dollars after any age you wish.
Also, I know I could better use the money when I'm 62, while I'm able to have fun, then at 70 when I'll be spoon fed my strained peas. Just sayin' I want to enjoy my retirement.
If I have a retirement IRA that already covers me, I still plan to draw my SS early. Reason; by spending my SS, I reserve my own account for any inheritance. My SS stops when I die. My IRA is handed down to my family. I think I'd rather spend the SS dollars first before spending my own savings.
