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Can the Actuarial Reduction for Social Security Early Retirement Still Be Right?


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  • Alicia H. Munnell
  • Steven A. Sass


The option to claim Social Security benefits earlier than the program’s Full Retirement Age, in exchange for receiving an actuarially reduced benefit, is a key feature of the nation’s Social Security program. This principle remained in place when Congress increased the Full Retirement Age from 65 to 67. Most workers choose to claim early and retire on the reduced benefits. The option to claim early was enacted over 50 years ago, when Congress set 62 as the program’s Earliest Age of Eligibility. To make up for the extra three years of benefit payments, those claiming at 62 received 20 percent less in monthly benefits than if they had claimed at 65. Despite a significant increase in life expectancy in the intervening years, benefits claimed at 62 today are still about 20 percent less than benefits claimed at 65. This brief asks whether this actuarial reduction is still correct...

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Bibliographic Info

Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2012-6.

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Length: 5 pages
Date of creation: Mar 2012
Date of revision: Mar 2012
Handle: RePEc:crr:issbrf:ib2012-6

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Cited by:
  1. John Shoven & Sita Slavov, 2013. "Recent Changes In The Gains From Delaying Social Security," Discussion Papers, Stanford Institute for Economic Policy Research 13-019, Stanford Institute for Economic Policy Research.


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