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Why do most people collect social security early?

Why would anyone do that?
The majority of people tapping into Social Security are collecting before they can receive full benefits, despite a drastic reduction to their payments.

ATLANTA – The majority of people tapping into Social Security are collecting before they can receive full benefits, despite a drastic reduction to their payments.

Why would anyone do that?

11Alive’s Why Guy spoke to financial experts as well as the Social Security Administration to get some answers.

Depending on when you were born, you won’t receive full Social Security Benefits until you’re at least 66-years-old. However, you can start collecting benefits at 62 at a reduced rate.

A spokesperson for Georgia’s AARP says some people are forced into early retirement.

“Perhaps their savings is not enough to live on,” says Melissa Sinden. “Another reason may be an individual is forced out of their employment and needs to collect Social Security for income.”

Financial planner Chris Lamia says there is the concern about change.

“They (early retirees) worry over the future of the Social Security program. It’s enough to convince some to collect sooner rather than later."

For some, health is an issue.

“If someone isn’t in the best of health and has reason to believe they may not live long enough to collect their entire benefit,” says Sinden.

Lamia says there is software that will help determine the best time to collect, but many are unaware.

“They frankly don’t know any better,” says Lamia. “They’ve never worked with a financial planner who can use specific analyzing software to determine the most effective age to collect benefits for their particular situation."

The Social Security Administration says there are tools at www.socialsecurity.gov to help plan for retirement.

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