With proper financial planning, you should be able to retire based on the U.S. superannuation age.
Work provides much in terms of financial stability, a sense of accomplishment and camaraderie. However, as people grow older, they typically want to retire and take more time for themselves, particularly if they are not as physically capable of doing their jobs. Most Americans associate age 65 with retirement, but retirement does not automatically happen at this age.
Superannuation and Retirement
Importantly, when most people refer to retirement, what they really mean is superannuation. Superannuation is cessation of work at a predetermined age, which usually is set by a governing body. Retirement also is cessation of work, but it doesn't require a set age -- you could retire at 20 if you had the financial means to do so. Retirement thus doesn't have to occur at 65. Although superannuation used to occur at age 65 in the U.S., as of 2011, superannuation now occurs at age 67 for those born in 1960 or later.
Application
To collect Social Security superannuation benefits, you must apply for the benefits through the Social Security Administration. The administration does not assume that you will want to get your superannuation benefits when you reach the age for superannuation, because many people continue working past this age. You may apply online or in person at your local SSA office. The earliest you can apply for superannuation is age 62, and your benefits are lower if you apply early. Many workers provide their own retirement savings, including money from 401(k) or other retirement plans and investments. People typically combine their retirement funds and superannuation benefits into one general "retirement" package. Depending on the funds you have acquired for retirement, you may also need to apply to access your retirement funds through your bank, broker or former employer. Unlike SSA superannuation benefits, you may get to keep your full benefit amount if you apply early for retirement funds, but this depends on the fund/account type.
The Need to Continue Working
Even though the superannuation age set by SSA is 67, unexpected life events like needing to move or an employer going bankrupt, as well as poor financial planning, often prevent people from claiming benefits. The typical SSA superannuation benefit is only about $1,000 a month, which may not cover your expenses. If a person hasn't been able to save or set aside enough money to make up the difference in what they need, they may have to keep working beyond age 67. Employers are prohibited from terminating employees based only on their age, so legally you can work as long as you want, provided you fulfill your employer's requirements.
Credits
SSA determines whether you can collect superannuation benefits based on the number of credits you have earned. If you were born in 1929 or later, you must have 40 credits, or 10 years of work, to apply for benefits. If you don't have enough credits, you have to keep working to get the credits necessary to collect superannuation benefits. This may mean you have to work beyond age 67.
