Though it is almost always a mistake to take your Social Security retirement benefits before full retirement age (FRA), people still do it. Retiring as early as 62 could cost you a large amount of money for the rest of your life. So, why do people continue to make this error? One common reason I hear is that retirees are worried that Social Security will either disappear before they can collect or that Social Security will reduce the benefits that they pay retirees.
A new article in Forbes looks at the issue of Social Security reducing benefits as a risk for waiting until FRA. The results are startling. You can read the numbers yourself in the article. But, the takeaway is this: Congress would have to reduce Social Security retirement benefits by 80% before retiring at 62 is a better option than waiting. Yes, 80%.
Seen Any Brave Politicians Lately?
Before applying for Social Security retirement at age 62, ask yourself: How likely is that politicians would reduce the income of the people most likely to
vote (the elderly) by 80%? If you are convinced that this sort of political courage exists in Washington, go ahead and retire. Otherwise, be patient, be smart, and wait as long as possible to collect your retirement benefits.