Should you take social security payments early?

Is it a good idea to take your pension earlier, or later? A recent article in the Middletown Journal reports that a growing number of Baby Boomers in the United States are opting to collect their Social Security payments as early as they can, partly because of the weak economy and as an insurance policy to protect against future stock market trouble.

But the Journal says that while collecting Social Security early might be tempting, it could mean less money for retirees. In some cases, as much as tens of thousands of dollars could be lost by taking Social Security earlier.

But that doesn’t mean it’s not right for anybody.

“For some people it’s worth taking early, like if you are unhealthy, you become unemployed or your investment returns are low or you really, really need income,” economics professor John Bowblis from Miami University said.

To get full Social Security rates, one must be 65 years old for people born before 1960, and 67 years old for people born after 1960, but Americans can collect as early as 62 years old, but the difference in payments can be as much as 25 or 30 per cent, according to the news source.