I unfortunately receive SSD benefits at age 56 due to a muscle disease, muscular dystropy.  I worked for 30 years.  Social Security has given a cost of living raise only a few times in the last 10 years, depends on the economy.  We have NOT received a cost of living raise in 2 years due to the economy, yet Medicare Part D has raised its monthly amount.  Medicare has not risen in the last 2 years, but in 2012 Medicare it going to cost alot more.  Currently it is a little less that $100.00 a month, and Medicare Part D is about $50.00 a month, depending on the plan you choose to enroll in.  So Medicare Part D has risen to about $50.00 a month and Medicare Part A & B is now about $100 a month and is going to go up quite a  bit, but as of now, whatever amount you are looking at for Social Security and retiring early at age 62, which you get quite a bit less than if you work until age 65, you can look at least $150.00 less taken out for Medicare Part A & B and Medicare Part D.  So look at what you think you are going to retire on at age 62, then deduct at least $150.00 from that for Medicare Part A & B and Medicare Part D.  Medicare part D rose quite a bit for 2012, looking at my information I just received.  And every year they adjust prescriptions into Tiers.  Generic Tiers used to all be Tier 1, cheap, but now Generic Tiers are Tier 2 and Tier 3, and the copays on Tier 3 is $38.00 a month for one prescription. In 2011 this certain prescription was a Tier 1 and cost $7.00 a month, now in 2012 it went to a Tier 3, and cost $38.00.  If you are like  me you are taking about 7 or 8 prescriptions.  One prescription for Levothroxin, for thyroid, over the counter full price is $13.00, but my plan put it into a Tier 2, and will cost me $8.00.  So those of you that think we get such a good deal on prescriptions, think again.  Just on that one prescription alone, I am saving $5.00.  So look at what your Social Security amount will be at age 62, then figure out the deductions, you have to enroll in a Medicare D plan.  And they will deduct Medicare A & B from your Social Security check.  What is so scary for me and my husband, is each year our prescriptions keep getting put into a higher Tier, and the copays for both of us are over $200.00 a month.  If you are healthy, not taking alot of prescriptions, and you want to retire at age 62, just remember the deductions that will be taken out of that check even before you get it.  They take Medicare out of your check before you even get it.  Even if you are healthy at age 62, look at me,,, I worked for 30 years and was never sick, then bam!!! You never know what will happen, and that is the thing I would look at very carefully if you want to retire at age 62 and do not have an IRA or pension plan from the company you are working for to supplement you Social Security.  I had no idea this could happen to me and did not have much in my IRA, which was spent on medical bills anyway.  If I had not gotten sick, I would work until age 65 and get more money, but it all depends if you will get a pension to supplement your Social Security if you retire early at 62, and if you have alot of money in savings, or stock (I would not trust my stock at all, I saw a special on TV where a couple in Florida were millionairs one day, and the next day they had NO MONEY due to the Madoff scheme).  There are alot of things to think about if you want to retire at age 62, depends on if your home is paid for, house insurance, car insurance, personal property taxes all have to be paid, and copays on medications, then the rest you have to live on, which is not much.  We ate so poorly for 5 years, until we got our home paid for finally, I am having to take prescription supplements like FOLBIC (Folic Acid, Vitamin B6 and B12-due to not eating alot of leafy greens), homosteine levels so high causes hardening of the arteries, we did not purchase much produce due to the high cost, no salads.  Depends on your expenses you have if you want to take the leap and retire at age 62, but hope I have given you alot to think about.  What you see to retire on for Social Security at age 62, is not what it will be once they deduct for Medicare Part A&B and Medicare Part D, which is mandatory to enroll in within 6 months of retiring.  And then you usually will want a Supplement for Social Security, since Medicare pays so little.  Regular Social Social Security Supplement Plans are under $200 a month, but since I am on SSD, my supplement went up to $400.00 a month several years ago, and I could no longer afford it, I had been Paying $250 a month from my check for a Supplement to Medicare.  So I hope I have given you some insight as to what you may have to prepare for if you want to retire early at age 62, if you have alot of money saved and your home is paid for, it might be easy for you to do.  For those unfortunate sould like me, totally unprepared to be so sick, and on SSD it is a curse!!
Posted by pattyasm