If you stop working and start receiving benefits

At age 62, your payment would be about $1,400 per month.

At your full retirement age (67 years), your payment would be about $2,000 per month.

At age 70, your payment would be about $2,480 per month.

These numbers represent a reduction of 30% for early retirement (age 62) and an increase of 24% for delayed retirement (age 70).

This couple also learned that it is possible for a spouse to take spousal benefits at the time that one of them is at full retirement age. In other words, if Sheryl starts her $2,000 benefits at age 67, Brad can receive a benefit equal to 50% of hers. Then, when Brad reaches 70 years of age, he can discontinue spousal benefits and start his own. In the meantime, his benefits will have increased by 24%. Of course, this strategy could be switched with Brad taking his benefits and Sheryl receiving spousal benefits until age 70.

All these options let them to define four alternative plans.

A: Each takes early benefits at age 62 with a 30% reduction to $1,400 per month.

B: Each takes full benefits at full retirement age of 67 and receives $2,000 per month.

C: Each delays benefits until age 70 with a 24% increase to $2,480 per month.

D: One person takes full benefits of $2,000 per month at age 67, and the other person receives spousal benefits ($1,000 per month at age 67) and switches to delayed benefits of $2,480 at age 70.

They realize, of course, that the numbers will change over time, base on their respective salaries and number of years of contribution to the social security system by them and by their employers.