Eligibility Requirements

• You must earn at least 40 work credits before you retire early and collect Social Security insurance benefits. The maximum number of work credits the Social Security Administration allows you to receive each year is four. You receive a work credit after you earn gross wages equal to $1,200. Even if you earn $100,000 a year, you can only receive four work credits a year. After you have worked 10 years and/or received 40 work credits you qualify to collect Social Security retirement benefits.
  
  

Early Retirement

• The Social Security Administration reduces your retirement benefits based on the number of months that you retire early. If you retire six months early, your monthly retirement benefits are reduced by about six percent. Should you die, your spouse and dependent children will also receive your benefits at a reduced rate.
  
  

Full Retirement Age

• As soon as you reach full retirement age, you can collect your full benefits. Your full retirement age is based on the year you were born. For example, if you were born in 1937 or earlier, your full retirement age is 65. If you were born between 1943 and 1954, your full retirement age is 66, and if you were born in 1960 or later, you will reach full retirement age at 67. However, if you starting collecting Social Security retirement benefits six months early, your monthly benefits will continue to get sent to you from the Social Security Administration at the reduced monthly rates. Furthermore, if you work until you reach full retirement age, you can increase the amount of monthly benefits you receive by earning higher wages until you retire as your monthly benefits are based on your gross earnings over your work career.
  
  

Working While Collecting Social Security Retirement Benefits

• The most you can earn while you work and collect Social Security retirement benefits if you retire early is $37,680 a year as of April 2011. If you earn above this amount, the Social Security Administration will deduct $1 for every $3 you earn above $37,680 from your monthly retirement check. However, if you wait six months until you reach full retirement age you can earn as much money as you want working a part-time or full-time job. Not only are you not required to report your wages to the Social Security Administration, the administration will not deduct money from your monthly benefits, regardless of how much additional income you earn.