Are Early Claimers Making a Mistake?

TitleAre Early Claimers Making a Mistake?
Publication TypeReport
Year of Publication2016
AuthorsMunnell, AH, Sanzenbacher, GT, Webb, A, Gillis, CM
Series TitleCenter for Retirement Research at Boston College Working Paper Series
Document NumberWP#2016-5
InstitutionCenter for Retirement Research at Boston College
CityChestnut Hill, MA

Using Health and Retirement Study (HRS) data and Latent Class Analysis for three cohorts (those born in 1931-1936, 1937-1941, and 1942-1947), this paper explores: 1) who claims Social Security benefits at age 62; 2) what percentage of households claiming at 62 are unprepared for retirement; and 3) whether the unprepared early claimers were pushed into claiming through job shocks and/or poor health or simply decided to take benefits early. Looking across three cohorts makes it possible to see whether these patterns have changed as the average claim age has increased and pension coverage has shifted away from defined benefit (DB) plans. That is, have those who have moved out of age-62 claiming been educated, financially prepared households or unprepared households that have recognized the need to delay claiming?

Citation Key9028