Are Social Security’s Actuarial Adjustments Still Correct?

IB#19-18

The brief’s key findings are:

  • People can claim Social Security from 62 to 70, with adjustments to keep lifetime benefits the same, on average, regardless of claiming age.
  • The question is whether the adjustments, set decades ago, are still correct, given the decline in interest rates and increase in life expectancy.
  • For the average worker, the analysis shows that the reduction for claiming early is currently too large while the increase for claiming late is about right.
  • Higher earners – who live longer and claim later – get a really good deal under the current system.