What if we abandoned our out-of-the-norm early retirement option in Social Security? Published by Jane the Actuary View all posts by Jane the Actuary
3 thoughts on “Forbes Post, “Putin’s Russian Retirement Age Hike And U.S. Social Security””
It would depend upon (1) one’s life expectancy, (2) the number of years (if any) between the early retirement age (ERA) and the full retirement age (FRA), (3) the percent reduction in benefits for early retirement compared to retirement at the FRA, (4) whether one has other income sources or savings to bridge the gap between the ERA and the FRA, (5) whether benefits, if taken early, are invested or spent, and (6) if they are invested, the expected rate of return. Relatively healthy individuals who are financially well off would need to consider whether the lifetime reduction in benefits for taking early retirement might be offset by the expected rate of return from investing the benefits, or at least a significant portion of them. However, individuals who are not healthy, financially secure, or employable may have to claim their benefits early. Their incentive, if any, to delay claiming would depend upon whether the benefit reduction for early retirement stays at 30%, in which case it would probably be better for them to delay claiming and take their chances, if possible.