This paper examines the effect on retirement rates at ages 62 to 65 of the increase in Social Security’s full retirement age and the associated decrease in benefits that began in 2000. We use a parametric and nonparametric difference-in-difference approach and monthly Current Population Survey data from 1976 to 2019. We find that the increase in the retirement age decreased the retirement rate at age 62 about 5 percentage points (or 30 percent) for men and about 2 percentage points (or about 20 percent) for women. Retirement rates at ages 63 to 65 were not affected.

External Link:

https://crr.bc.edu/working-papers/the-effect-of-early-claiming-benefit-reduction-on-retirement-rates/