Some Americans retire early and delay Social Security. Here’s the secret (and why it could work for you)

Core Insights - Retirement is closely linked to Social Security, with the typical retirement age being 64 for men and 62 for women as of 2024 [1][2] - Nearly 45% of retirees claim Social Security benefits around this age, indicating its significance as a primary income source for many [2] Group 1: Early Retirement and Social Security - Some individuals opt to retire before claiming Social Security, creating a gap between their income and benefits, which can offer financial advantages [2] - Delaying Social Security benefits can significantly increase monthly payouts, with an 8% increase for each year delayed beyond the full retirement age of 67, potentially leading to a 24% higher benefit by age 70 [3][4] Group 2: Benefit Calculation - Social Security benefits are calculated based on the highest 35 years of inflation-adjusted earnings, influencing the average indexed monthly earnings (AIME) [5] - Years without earnings are counted as zeros only if there are fewer than 35 years of recorded earnings, allowing those with sufficient earnings to retire early without drastically reducing their benefits [5]