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How Retirement Age and Social Safety Claiming Age Are Associated

Frequency of Retiring and Claiming Social Safety on the Similar Age

Supply: EBRI 2024 RCS, Creator’s Calculations

About 75% of individuals declare Social Safety retirement advantages at their retirement age (amongst these retiring between the ages of 62 and 70), though the frequency is highest for youthful retirees. For instance, about 90% of people who retired at 62 claimed Social Safety at 62, whereas about 40% of people that retired at 70 claimed at 70.

Whereas solely 50% of respondents who claimed advantages at 62 retired at that age, a good portion of retirees declare Social Safety advantages at 62 however retire earlier. For instance, 92% of people that claimed Social Safety advantages at 62 retired at or earlier than 62. In different phrases, retirees who declare at 62 overwhelmingly retire at comparatively youthful ages.

The next chart contains extra details about the distribution of retirement ages and is offered for 3 claiming ages: 62, 66 (the approximate common full retirement age) and 70.

Retirement Ages for Sure Social Safety Claiming Ages

Supply: EBRI 2024 RCS, Creator’s Calculations

Amongst those that claimed advantages at age 66, 53% reported retiring at age 66 (when contemplating retirement ages from 50 to 80 inclusive, though the chart contains solely ages 55 to 70). In distinction, 31% of people that declare at 66 retired earlier than 66, whereas 16% retired later. Claiming Social Safety retirement advantages at 70 appears to be the least associated to respondent retirement age.

The choice to delay claiming advantages past retirement age is predicted to narrate to family monetary belongings. Due to this fact, the next chart explores the proportion of retirees who declare Social Safety retirement advantages later than their retirement age for 3 ranges of whole family monetary belongings: these with lower than $100,000, these with between $100,000 and $500,000, and people with $500,000 or extra.

Retirees Who Claimed After Retirement Age by Whole Monetary Property

Supply: EBRI 2024 RCS, Creator’s Calculations

Whereas retirees with increased ranges of monetary belongings usually tend to delay claiming Social Safety advantages past their retirement age, the person knowledge is considerably inconsistent. Solely 8% of respondents with lower than $100,000 in whole monetary belongings claimed after their retirement age, in comparison with 18% for these with $100,000 to $500,000 in monetary belongings, and 36% of these with greater than $500,000 in belongings. That is according to expectations, whereby households with increased ranges of monetary belongings usually tend to delay claiming since they’ve the means to resolve when to assert advantages.

David Blanchett is managing director, portfolio supervisor and head of Retirement Analysis for PGIM DC Options, a worldwide funding administration enterprise of Prudential Monetary.

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