Fewer people are claiming Social Security benefits at age 62. Factors, including the elimination of the earnings test, have contributed to people deciding to work longer and claim benefits later, according to the Center for Retirement Research.
When comparing claiming ages in 2019 and 2023, the number of people claiming benefits at age 62 and full retirement age (FRA) dropped, the research showed. At the same time, the number of people claiming first-time benefits at age 65, and after age 67 increased.
The age people first claim Social Security benefits has been rising
There has been a long and sustained change in the number of people who claim Social Security benefits at age 62, and that number is shrinking. This trend persisted during the pandemic, and both women and men are waiting longer to collect Social Security benefits.
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The number of people claiming benefits at age 62 in 1985 was over 50%, but it had declined to just over 25% by 2020, the research showed.
The Center also analyzed more recent Social Security Administration data, tracking the number of people filing for benefits at age 62, and then specifically comparing years 2019 and 2023.
The number of people who claimed benefits at age 62 dropped for both men and women from 2019 to 2023. There were 5% fewer claims filed by men and a 7% drop in claims from women. At the same time, the number of those claiming benefits at age 67 and over increased by 7% for men and 5% for women.
Interestingly, there was a dip in men and women filing claims at their full retirement age and an increase in those filing at age 65.
Age | 2019 | 2023 |
|---|---|---|
62- Men | 31% | 26% |
62- Women | 34% | 27% |
| Row 2 - Cell 0 | Row 2 - Cell 1 | Row 2 - Cell 2 |
63- Men | 7% | 7% |
63- Women | 7% | 8% |
| Row 5 - Cell 0 | Row 5 - Cell 1 | Row 5 - Cell 2 |
64- Men | 7% | 8% |
64- Women | 8% | 8% |
| Row 8 - Cell 0 | Row 8 - Cell 1 | Row 8 - Cell 2 |
65- Men | 13% | 16% |
65- Women | 13% | 16% |
| Row 11 - Cell 0 | Row 11 - Cell 1 | Row 11 - Cell 2 |
66 (FRA)- Men | 23% | 17% |
66 (FRA)- Women | 17% | 15% |
| Row 14 - Cell 0 | Row 14 - Cell 1 | Row 14 - Cell 2 |
67+ Men | 19% | 26% |
67+ Woman | 20% | 25% |
Factors contributing to a rising average age
A companion piece from the Center tracking the rising retirement age showed that the average age for men has increased by about three years to 64 since the 1990s. The study cited several reasons why people work longer, although the trend isn't likely to continue. "Increased participation of older workers may well be exhausted, suggesting further increases in the average retirement age are relatively unlikely," the report noted.
- Changes to Social Security. Elimination of the earnings test, increase in the FRA from 65 to 67, thereby reduced benefits for those claiming early, and the enhanced delayed retirement credit increased incentives to keep working between the FRA and age 70.
- Shift from pensions (defined benefit retirement plan) to 401(k) plans or defined contribution plans and improved health and longevity. The demise of pensions eliminated built-in incentives to retire. 401(k) participants bear investment risk, And worker may feel they need to work longer to save more to account for longevity and market risks.
- Better-educated workers and less physically demanding jobs. Between 1985 and 2015, the share of older workers with college degrees increased and these workers have more employment opportunities, are paid more and work longer. The decline in manufacturing and rise of a knowledge based economy has resulted in jobs that put less strain on the body.
- Decline of retiree health insurance. Staying in the workplace is one way to maintain access to health insurance before Medicare eligibility kicks in at ag 65.
When to claim your benefits is a highly personal decision
We've already seen an uptick in people claiming benefits earlier than planned due to the anxiety about possible benefit cuts due to insolvency of the Social Security trust fund and the impact of service changes driven by DOGE.
It might be best to consult with a professional, such as a registered Social Security analyst, before acting in haste. Getting a clear picture as to where you stand with respect to how much you'd likely collect at different claiming ages will go along way in helping you decide the best time for you and your retirement plans.
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