Claiming Social Security early may mean receiving income sooner in life, but also seeing less when you’re older and may need it more.
Since the law changed in 1961 to allow Americans to claim Social Security benefits at age 62, the average age of claiming benefits has dropped 1.4 years. Total Social Security income for those at the bottom of the income distribution dropped as well, according to a recent report circulated by the National Bureau of Economic Research. This also dovetailed with an increase in elderly poverty and income inequality.
