From Are Social Security’s Actuarial Adjustments Still Correct? by Alicia Munnell and Anqi Chen of the Center for Retirement Research at Boston College:
- People can claim Social Security from 62 to 70, with adjustments to keep lifetime benefits the same, on average, regardless of claiming age.
- The question is whether the adjustments, set decades ago, are still correct, given the decline in interest rates and increase in life expectancy.
- For the average worker, the analysis shows that the reduction for claiming early is currently too large while the increase for claiming late is about right.
- Higher earners – who live longer and claim later – get a really good deal under the current system.
This is asking questions that have not been asked in quite some time. The study suggests lowering the early retirement penalty which might increase the already high rate of early retirement as well as decrease the viability of the retirement trust fund if not accompanied by an increase in revenues. I doubt that's happening.