The percentage of older men and women who claim Social Security benefits at age 62—the earliest possible age to begin receiving retired-worker benefits—has dropped steeply over the past two decades. Behind the decline is the greater labor force participation of older Americans, according to an analysis by Patrick J. Purcell of the Social Security Administration. The labor force participation rate of men aged 60 to 64 grew from 53 to 63 percent between 1995 and 2018, while the labor force participation of their female counterparts climbed from 38 to 52 percent.
Among 62-year-old men, the rate of Social Security claiming fell from 44.1 percent in the 1995–99 time period to just 22.1 percent in 2015–18. Among 62-year-old women, the figure fell from 49.4 to just 24.6 percent during those years. Apparently, older Americans are getting the message—the longer they wait to claim Social Security, the bigger their monthly benefit.
As early claiming has declined, there has been a surge in claiming at age 66—deemed Full Retirement Age (or FRA) by the Social Security Administration for those born between 1943 and 1954. Among 66-year-olds in 2015–18, the rate of claiming was 55.7 percent for men and 48.0 percent for women. These figures are up sharply from the 28.2 and 27.7 percent, respectively, of 1995–99.
Purcell notes in his analysis that "trends in retirement age—and in the age at which individuals claim Social Security benefits—can change substantially in a short time." We're about to see just how rapidly claiming rates can change. As older workers lose their jobs due to the coronavirus pandemic, early claiming of Social Security benefits may become more popular again.
Source: Social Security Administration, Employment at Older Ages and Social Security Benefit Claiming, 1980–2018
No comments:
Post a Comment