Brian O'Connor at NYT:
The amount of money you get from Social Security each month depends on when you start receiving benefits.
If you were born after Jan. 1, 1960, your full retirement age is 67. Wait longer, and your benefit rises by 8 percent a year until age 70.
But if you claim Social Security “early,” or before your full retirement age, your payment is reduced, often drastically. Claiming at 62 results in your payment being slashed by as much as 30 percent from the full retirement age benefit. The reduction shrinks each year until your full retirement age. Claiming early also means that any income you earn above a set limit results in part of your benefits being temporarily withheld until you reach full retirement age. While there are limited options to withdraw or pause to reset your benefits, you should consider your initial choice to be permanent.There are understandable reasons people cannot wait. Ruth Finkelstein, executive director of the Brookdale Center for Healthy Aging at Hunter College, said many people who claim benefits at 62 have been out of work or underemployed for years.
“The mass of people who ‘retire’ between 50 and 62 were pushed out of the workplace or had to leave because of someone in the family with health concerns,” Ms. Finkelstein said. “They’ve been holding on until 62.”
About 40 percent of retirees get more than half of their retirement income from Social Security, according to the National Bureau of Economic Research. About 13 percent depend entirely on their benefits.
And there’s a fear factor: According to Schroders’ 2025 U.S. Retirement Survey, more than one-third of non-retired Americans say they worry that the Social Security program will run out of money. That worry is based on federal estimates that by 2033, the program trust fund can afford to pay only 77 percent of all scheduled benefits.
