The most popular age at which to start claiming Social Security benefits is the minimum of 62, according to the Bipartisan Policy Center, even though most financial professionals will encourage their clients to hold off on claiming as long as they can, barring any exigent circumstances. A paper from the Center for Retirement Research at Boston College quantifies the impact that raising the age has on retirement behaviors.
Increasing the full retirement age for Social Security decreased the early retirement rate by about 30% for men and 20% for women, according to the paper published in January. The paper, “The Effect of Early Claiming Benefit Reduction on Retirement Rates,” was written by Damir Cosic, senior research associate, and C. Eugene Steuerle, fellow and the Richard B. Fisher chair, at the Urban Institute. They used data from the Current Population Survey to compare the effect of FRA reforms on early retirement rates.
Author: Danielle Andrus
Publication Date: 3 February 2021
Publication Site: 401k Specialist