I'm pretty sure the first rule of thumb for retirement is to have all debt paid off, including mortgage.
College debt is a hot topic around here. If you're serious about retirement, consider having your kids go to affordable schools. Even if "they" take on a lot of debt, and not you, you may wind up with them needing your support later on.
Interesting point about benefits still increasing while working. I suppose this is true even if one is working part time and still paying into the system? Does anyone know what the income limits are for someone working while collecting?
There are not "rules" for when it is best to retire (maybe in a DIY book from the bookstore LOL). People retire for various reasons, some health reasons where they would want to keep working but physically can not. Those individuals may not be out of debt but have very few options. Yes, it is "nice" to be out of debt and retired. I just don't think the average person is fully out of debt when they fully retire.
My husband retired in 2005 after 25 years of military service, but started working as a civilian three desks over. LOL. I retired after 20 years of service and took a civilian job with a private company. As part of my job I speak to people everyday, many retired who are buying and financing houses at age 70+. We both also get VA disability checks. I did mention the kids college, which we will pay for without incurring any debt. That is why I said we will work until they graduate college, because we are paying for it and there will not be any student loans. There will be some GI Bill coverage, 529 plans are in place, and the rest we will pay cash.
It's also about standard of living. I personally like to travel and vacation. I like international travel as well, so working my current job allows that. After the kids graduate, we will reassess our situation. DH does have some health issues and by that point, may want to fully retire while I keep working.
As far as income when taking SS: Google results says:
"Limits on Earned Income If Claiming Early Benefits
Until you reach full retirement age, Social Security will subtract money from your retirement check if you exceed a certain amount of earned income for the year. For the year 2019, this limit on earned income is $17,640 ($1,470 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit."
For us, early SS doesn't make sense based on DH current income, and what he would get under early SS.