Why More Workers Are Retiring With Less by Claiming Social Security Early

Core Insights - An increasing number of working Americans plan to claim Social Security benefits early while continuing to work due to inflation, recession fears, and concerns about the future of Social Security [1][2] Summary by Sections Claiming Social Security Early - 42% of Americans intend to file for Social Security before reaching full retirement age, an increase from 36% in 2021 [2] - Workers can claim benefits as early as age 62, but this may result in a monthly benefit that is up to 30% less than what they would receive at full retirement age, which ranges from 66 to 67 depending on birth year [3] Financial Implications - The average monthly Social Security check for retirees is $1,693.88, while a 62-year-old retiring this year would receive an average of $1,247.40, compared to $1,782 at full retirement age [4] - Over a 20-year retirement, the difference of $534.60 per month could total over $128,000 in retirement income, excluding cost-of-living adjustments [5] Reasons for Early Claiming - Many workers opt to take Social Security benefits early due to circumstances such as corporate downsizing, age discrimination, illness, or caregiving responsibilities [6] Break-Even Analysis - The "break-even" point, where total benefits collected at full retirement age exceed those collected by starting early, typically occurs around age 80 [8] - For example, someone starting benefits at age 62 could collect over $254,000 in 17 years before surpassing the total amount received by waiting for the higher full-retirement benefit [9]