The Age-62 Dilemma: Is Early Social Security Worth the Risk?

Money Explainers

Thinking of claiming Social Security at 62? New research reveals surprising risks, including a potential impact on life expectancy, especially for men. Don't just look at the numbers. The decision to claim early Social Security benefits could have unexpected psychological and health consequences. Before you claim, understand the full picture. Explore why waiting for your full retirement age might be the healthier choice. #RetirementPlanningTips #SocialSecuritySecrets #EarlyRetirementRealityCheck

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00:00For many, turning 62 marks a pivotal moment, the earliest age to claim Social Security benefits,

00:06but think twice before joining the growing number of early claimers.

00:10While appealing, new research suggests profound long-term consequences,

00:14including a potential reduction in life expectancy, particularly for men.

00:18Historically, the decision to claim early was viewed purely through a financial lens.

00:23After all, the Social Security Administration itself calculates that the lower monthly payments

00:27for early claimers are actuarially equivalent over an average lifespan to higher payments for those who wait.

00:33However, a provocative study, The Mortality Effects of Retirement,

00:37evidence from Social Security eligibility at age 62, by Maria Fitzpatrick and Timothy Moore,

00:43reveals an alarming trend.

00:45They found a significant increase in mortality among men in the month they turned 62.

00:49This pattern was not observed.

00:51Before 1961, when early claiming first became an option, while correlation isn't causation,

00:56other studies point to unhealthy lifestyle shifts after retirement for men,

01:01such as increased sedentary behavior and higher tobacco and alcohol use.

01:05The looming prospect of Social Security S-Trust Fund depletion by 2033

01:09certainly makes early claiming seem more attractive financially.

01:12But if it comes at the cost of your longevity, is it truly worth it?

01:17Weighing your options carefully is crucial, as the choice extends far beyond your bank account.

01:21Money expense.

01:22Money expense.

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