Workers should change their minds and not apply for Social Security early.
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The typical worker in the US loses about $182,000 in discretionary income for life for filing for Social Security before age 70according to a report by economists at Boston University and the Federal Reserve Bank of Atlanta.
Nearly half of people in the United States apply for Social Security before they reach full retirement age and about a quarter apply by age 62, according to data from the Social Security Administration.
That said, Laurence J. Kotlikoff, a co-author of the study and a professor of economics at Boston University, told CBS that people should change their thinking and not pretend prematurely.
Some people decide to apply for Social Security early because they consider their life expectancy, which is 83 years for men and 85 for women.
However, Kotlikoff and his co-authors say people should consider that they may live to their maximum life span, which could be between 90 and 100 years old.
Instead of leaving early, workers should use financial strategies that can help them delay applying for Social Securitythat will increase your lifetime’s discretionary income, such as saving more or getting a second job, Kotlikoff said.
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