The current full retirement age is 66 and 10 months for individuals if you attain age 62 in 2021. The age when retired people can receive full benefits is increasing gradually to age 67. (The age for Medicare eligibility remains at 65.)

Leaving the workplace may be as simple as filling out paperwork with your human resources office, but replacing a paycheck can be more difficult. 

You can begin getting Social Security retirement benefits as early as age 62. But we will reduce your benefits by as much as 30% below what you would get if you waited to retire until your full retirement age. If you wait until your full retirement age (66 for most people), you will get your full benefit. You also can wait until age 70 to start your benefits. Then, we will increase your benefit because you earned “delayed retirement credits.”

Social Security does not count pension payments, annuities, or the interest or dividends from your savings and investments as earnings. They do not lower your Social Security retirement benefits.

If you have not already done so, you should choose your exact retirement date. Afterwards, your benefit can be estimated based on the exact date. The best place to obtain assistance is your agency's local personnel service center.   They can provide personalized assistance and they have your employment records.  They will provide you with information on when your benefit payments can begin based on your proposed retirement date.  You will also find out how this date affects factors used to determine the amount of your retirement benefit, such as your length of service, high-3 average salary, and the proration of cost-of-living adjustments.

In general, section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans (certain employer retirement plans, such as section 401(k) and 403(b) plans, and IRAs) to qualified individuals, as well as special rollover rules with respect to such distributions. It also increases the limit on the amount a qualified individual may borrow from an eligible retirement plan (not including an IRA) and permits a plan sponsor to provide qualified individuals up to an additional year to repay their plan loans. See the FAQs below for more details.     

A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs.

No, you will not receive a penalty or fine if Social Security denies your claim because you do not qualify for benefits.  Likewise, if you appeal that decision or apply again, you will not receive a penalty or a fine. 

No one can answer that but you. However, an AYG advisor can run through a number of what-if scenarios to help a worker determine the best time to retire from a financial perspective. These scenarios can consider whether retiring early could lead to a shortfall of money later.