Core Insights - Many retirees depend on Social Security for their expenses, but benefits often fall short of expectations [1] Group 1: Impact of Early Retirement - Claiming Social Security at age 62 can reduce benefits by up to 30% compared to waiting until full retirement age [2][4] - Retiring earlier than planned may result in fewer high-earning years being factored into the benefit calculation, leading to lower overall benefits [3] Group 2: Tax Implications - Approximately 50% of seniors are subject to federal taxes on Social Security benefits, starting at $25,000 for single filers and $32,000 for married couples [6][7] - The income threshold for taxation is not adjusted for inflation, causing more retirees to face tax liabilities over time [6]