It's also a myth that people are "living longer." That isn't really true at all. Life expectancy at birth has gone up, but that doesn't translate into people "living longer." One's health starts to fall apart as early as 50, and many jobs are off limits as a result.
Drawing Social Security early has repercussions that will be hard to overcome even if the economy — and her work prospects — improve. By collecting four years shy of her full retirement age, Ms. Keany will receive a reduced monthly benefit for the rest of her life. Those who collect early get 20 to 30 percent less a month than they would get if they waited until full retirement age, which varies by year of birth. People in Ms. Keany’s age bracket are expected to live an average of close to 23 more years.
“The most potent lever that individuals can pull in trying to get themselves a secure retirement income is to postpone claiming” Social Security, said Alicia H. Munnell, director of the Center for Retirement Research at Boston College.
As recently as a decade ago, half of those eligible claimed Social Security at 62. But that share has been falling because people are living longer and still want to work as well as shore up retirement funds. That makes it even more galling for those who are forced to claim early because of unemployment. Several people interviewed mentioned blows to their self-esteem along with abandoned dreams of a more comfortable old age.
Congress ought to change the law so that people can claim full SS at 62 or 60. Of course they never will do it.
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