Sometimes an individual must elect one among an array of available options, where one option can provide better value than another even though both alternatives achieve a person's objectives. This is the case when a retiree decides the date to start receiving Social Security benefits. Should he elect such benefits at the full retirement age (currently 65 for those born in 1937 or earlier, but scheduled to increase gradually to age 67 for those born in 1960 or later) or at an earlier age? The earliest age a person is eligible to receive Social Security benefits, at a reduced level, is age 62. This paper will establish a framework to help people understand the financial implications of these decisions.
Spousal and Survivor Elections of Normal Versus Early Retirement Benefits is another paper written by Thomas G. Walsh that discusses the issues facing a spouse who is trying to decide whether or not to receive Social Security retirement benefits early.
For additional related reading, go to Choosing Early or Normal-Age Social Security Benefits: Factors to Consider, an article published in the Journal of Retirement Planning that summarizes both papers.
