Why Do People Retire Early?

Press Release

"Deciding when to retire and claim Social Security benefits can be one of the most important financial decisions older Americans make," according to a report prepared for Sen. Bernie Sanders and released on Tuesday. "Despite higher monthly benefits for those who delay, many people still claim Social Security retirement benefits at age 62, the earliest age of eligibility. In 2014, these early retirees will see their monthly benefits reduced by 25 percent compared to what they would have received if they had delayed retirement until they were 66, the current full retirement age. At the same time, some early retirees do not have access to government or employer-sponsored health insurance."

Sanders requested the Government Accountability Office report in his capacity as chairman of a Senate subcommittee on aging.

The report identified several work-related reasons that may cause people to claim Social Security benefits early. Those who worked in physically-demanding jobs were 55 percent more likely to claim benefits prior to their full retirement age compared to those in all other occupations. Those who were out of the workforce or had longer work histories by age 60-62 were also significantly more likely to claim early retirements under Social Security. Retiring before Medicare eligibility at age 65 may also create affordable health insurance early in retirement.

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