Before you decide to retire at age 62 and start taking Social Security benefits, you may want to dig a little deeper into the statistics, especially if you are a man.
“Your life might depend on your decision,” MarketWatch notes in its article, “Why early retirement can be a killer.”This is because there’s a significant increase in mortality among men who retire at 62 and begin receiving Social Security, according to a new study that recently was distributed by the National Bureau of Economic Research.
The increase in the death rate is quite large, particularly among males who retire and claim Social Security at 62. The study found it to be by 20%. However, the data is inconclusive among females.
The authors of the study believe there is a causal link. Evidence of such a link is from the period before it was even possible to claim Social Security as early as age 62. During that earlier period, the researchers found there was no abnormally high increase in mortality at age 62. Thus, the unexpectedly large increase in mortality at age 62 starts to occur in the historical record right when people could start claiming their Social Security benefits at that earlier age.
So why would taking early retirement lead to increased mortality? The research found unhealthy changes in life style that often go with retirement. For instance, there is other research that found male “retirees become sedentary, often watching more television.” However, there appears to be no increase in sedentariness among females after retirement—perhaps a reason why there is a lower mortality rate among women who retire at age 62.
Also, unlike women, male retirees in particular, typically have fewer social interactions after they stop working, which other research has shown has a negative impact on health. There are also studies that found there to be an increase in tobacco and alcohol use after stopping work.
There’s no requirement you must stop working when you claim Social Security benefits at age 62; however, a third of those who do claim their benefits at that age do stop working.
While it is easy to come to conclusion that men should delay claiming Social Security for as long as they can, this may or may not be the answer. Depending on your personality, it may make sense to stay working full-time longer, switch to a part-time job while retired, or to find other types of work like odd jobs for the community or long-term projects for your house.
If your retirement plans include a healthy diet, lots of exercise and social activities, and if your overall health is good, you may be the exception to these statistics. Remember the key lesson here is that is not so much that you retire, but what you do when you retire. Planning for retirement is not just a financial matter, but also a health matter.
To learn more about social security benefits, come to our client workshop led by social security expert Kurt Czarnowski on June 7, 2018 at 3:00 pm in our offices. To view a full list of our client educational events and to access registration click here.
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Reference: MarketWatch (March 24, 2018) “Why early retirement can be a killer”