I am planning to retire by age 50 to 52 (I'm currently 43). I will live off the interest from my investments for about a decade, then I will start to receive my partial pension from my job at age 62, and also Social Security.
I spoke to a co-worker the other day about this, and he said that I have not thought my retirement through very well, because if I retire early, and don't contribute to Social Security for more than 5 consecutive years, they will cut my benefits when I go to collect at age 62. Is this true?
This just sounds wrong to me. Why should I be penalized for not contributing in the future, when I have already been vested in the system and earned my benefits? I understand that I will not be earning credit towards additional SSI benefits for the 10+ years that I will be retired, but to actually have benefits cut that I have already earned credit for, is unconscionable.
Am I missing something here?