economy1 hour ago
Economic Shocks and Health Risks Drive Surge in Early Social Security Claims
A recent surge in early Social Security claims contradicts previous trends of delayed retirement. While economists hoped older workers would wait for higher benefits, many are filing early due to job loss, health issues, or financial uncertainty. Claiming at 62 instead of 67 reduces monthly benefits by 30% for those born in 1960 or later, creating a permanent income gap. This decision also creates a three-year gap before Medicare eligibility at 65, forcing retirees to secure alternative health coverage. The trade-off involves immediate cash flow versus long-term financial security, with break-even points often occurring around age 79.