Last week’s blog post argued that Social Security’s real retirement age is 70. Monthly benefits are highest at age 70 and are actuarially reduced for each year claimed before that age. Claiming at 62 instead of 70 lowers a hypothetical monthly benefit from $1,000 to $568. Age 70 became Social Security’s retirement age with the maturation of the Delayed Retirement Credit, which now provides an actuarially fair adjustment for benefits claimed after 66 (the current full retirement age). That means, assuming average life expectancy, people who take a lower benefit early would expect to receive about the same total amount in benefits over their lifetimes as those who wait for higher monthly benefits but start receiving them later.
Read the full article at MarketWatch.