Claiming Social Security early, and the risk of late-life poverty
Age 62 – the minimum age for claiming Social Security – is clearly the most popular age at which people claim their Social Security benefits. But by claiming at that early age, they are taking a significant cut in what they would otherwise get by waiting until their full retirement age or beyond, and that reduction in benefits will last for the rest of their lives. With many beneficiaries now collecting benefits for decades, that lower benefit – as much as 30% lower for those born after 1959 – might mean that they will be struggling financially in the later years of their lives, perhaps even falling below the Government’s “poverty line”. In this MarketWatch article, columnist Alessandra Malito explains that those who claim their Social Security early could very well end up regretting it. Click here to read more.