Study Shows Fewer Claiming Social Security Early
In 2013 the Social Security Administration determined more than a third of insured workers claimed Social Security benefits as soon as they became eligible at age 62.
However, the tide seems to be turning and more people are claiming retired-worker benefits at later ages. This new pattern parallels an increased participation in the labor force at older ages and the rise in the national average retirement age which has increased over the last 25 years to 60 from 66.
According to the Center for Retirement Research at Boston University, vanishing traditional pensions, longer lifespans and lower Social Security rates find many people needing to work longer than anticipated in order to ensure financial security in retirement. In doing so, 401(k) contributions increase, current income rises and a 30 year retirement decreases to 28 or 25 years after spending an additional three to five in the workforce.
There are many long term implications to the decision of when an individual should take Social Security, including considerable impact on income for a surviving spouse. The Bedminster Group provides a comprehensive analysis using advanced software to assist our clients in understanding their Social Security alternatives.