Middle-Class Retirees Regret Claiming Social Security at 62, Locking in 30% Lower Payments
Updated
Updated · FinanceBuzz · May 22
Middle-Class Retirees Regret Claiming Social Security at 62, Locking in 30% Lower Payments
2 articles · Updated · FinanceBuzz · May 22
About one in five retirees in an NBER study said they would have delayed claiming Social Security if they could do it over, after early claims left them with permanently smaller monthly checks.
At age 62, benefits are roughly 30% below full-retirement-age levels, and that reduction lasts for life; delaying can raise the guaranteed payment further.
Boston College and Hurwitz-Mitchell research tied that regret to underestimated longevity, with many retirees expecting shorter lives and then needing reduced benefits for far longer than planned.
Financial strain also drove early claims: 52% of retirees in one study regretted not saving more, while nearly three in 10 said they were living paycheck to paycheck.
The findings underscore Social Security's role as inflation-adjusted longevity insurance—benefits recently got a 2.8% COLA—making early claims especially costly for retirees who live longer.
With Social Security facing deep cuts, is delaying benefits still the smartest move for your retirement?
Could retiring abroad be the secret to a richer life on a middle-class Social Security check?
Will capping benefits for the wealthy save Social Security for the average American retiree?