How does 62/70 work?

Part of why the 62/70 solution works is something known as joint mortality. Consider a husband and wife, both born on Jan. 1, 1950. When they become eligible for Social Security at 62, the wife will have a projected life expectancy of 84 years and 8 months.

What if a 62 year old waits for retirement benefits?

If they claim benefits at 62, they get just 75% of their full retirement age benefits. For each year they wait past 66, they get 8% more (plus an inflation adjustment), for a maximum benefit at 70 equal to 132% of the full retirement age payout.

Does 62/70 work if a retiree earns too much?

Although early retirees can lose a portion of their benefits if they earn too much, once you reach 66 you don't incur any penalty for working.) Part of why the 62/70 solution works is something known as joint mortality. Consider a husband and wife, both born on Jan. 1, 1950.