There are a few things you should know about before you claim your social security benefits at age 62. When people claim social security at age 62 they tend to have a lower amount of household income throughout their 60s and 70s compared to those who retire at a later age. They also tend to have less liquid wealth than retirees who claim at a later age. Finally, there is no measurement that shows a correlation between financial hardship and/or mortality rate when it comes to claiming at an earlier age.
Key Takeaways:
- The study shows than people who cash out at Age 62 tend to have lower household income throughout the rest of their life.
- When you claim at age 62, you most likely will have less liquid wealth than you would have if you claimed later.
- There is no measure of financial hardship or mortality rate that has any type of difference between the two groups.
“As the current study shows, this could have significant implications for the financial security of a whole cohort of retirees in the coming decades given the penalties associated with early claiming.”
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