How Can the Actuarial Reduction for Social Security Early Retirement Be Right?
AbstractTraditionally Social Security's Normal Retirement Age has been 65, but for the last 45 years both men and women have had the option to claim benefits at the Early Eligibility Age (EEA) of 62. In exchange for claiming early, individuals receive a smaller monthly benefit. The legislation that established the EEA reduced benefits by 5/9 of 1 percent for each month before age 65, so that a person claiming at age 62 would face a 20 percent [(5/9)*36] reduction. This publication explains the factor of 5/9 and why it has remained constant since the establishment of the EEA.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0407009.
Length: 4 pages
Date of creation: 12 Jul 2004
Date of revision:
Note: Type of Document - pdf; pages: 4
Contact details of provider:
Web page: http://188.8.131.52
Other versions of this item:
- Natalia A. Jivan, 2004. "How Can The Actuarial Reduction For Social Security Early Retirement Be Right?," Just the Facts jtf11, Center for Retirement Research.
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H - Public Economics
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John Shoven & Sita Slavov, 2013.
"Recent Changes In The Gains From Delaying Social Security,"
13-019, Stanford Institute for Economic Policy Research.
- John B. Shoven & Sita Nataraj Slavov, 2013. "Recent Changes in the Gains from Delaying Social Security," NBER Working Papers 19370, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.