Why Some People Can't Delay Social Security and Why You May Face the Same Challenge
Key Points
Physical and mental health issues can make working feel nearly impossible.
Losing a job has become a way of life in the U.S. and may be the reason some people pivot to claiming Social Security.
A person’s reason for claiming Social Security earlier than expected may be invisible to the casual observer.
- The $23,760 Social Security bonus most retirees completely overlook ›
People are in the habit of imagining the best. A Gallup World Poll from 2009 -- just as America was climbing out of the Great Recession -- polled adults in more than 140 countries. Despite all that was going on in the world, 89% of the 150,000 adults Gallup polled said they expected their life in five years to be as good or better than it was five years earlier.
That's optimism for you. And when a person is optimistic, they may think they have all the options in the world, including how long they plan to work. After all, there's a drumbeat of messages reminding Americans that they should wait until age 70 to claim Social Security if they want to receive the highest possible benefit. For some, collecting benefits any earlier than that seems like a failure.
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Yet no matter how optimistic you are, life can come down on you like a boulder. Out of nowhere, you may find yourself in the position of needing money and be forced to claim Social Security earlier than expected.
Whether someone plans to claim benefits once they hit their full retirement age (FRA) or plans to wait until 70, here are some of the reasons people claim Social Security before they feel ready.
Image source: Getty Images.
Health issues
Chronic illness, disability, and mental-health challenges can impact a person's ability to work as effectively as they would like. Whether they leave the workplace due to frustration, pain, or a combination of both, health issues help explain why some Americans are unable to delay a Social Security claim.
Job loss
Whether a person loses their job due to a layoff or is fired, it's not always easy to find a new position, particularly for older adults. For some, the way to stay above water financially is to file for Social Security benefits they've earned.
Need for change
Maybe the stress of the job becomes too much, and the person decides to take a part-time job they can enjoy. In one study by the Occupational Safety and Health Administration (OSHA), approximately 75% of U.S. workers surveyed said their work is a very significant or somewhat significant source of stress for them.
For a worker desperate to get away from the stress of a job, the decision may be to collect reduced Social Security benefits while working part-time at a job they enjoy.
Family responsibilities
When a family member becomes ill or needs round-the-clock care, working may be off the table. Even if that person wanted to work until FRA or even to age 70, unexpected circumstances may take the decision out of their hands.
When someone claims Social Security benefits before they initially planned to, it's often because they feel they had no other option.
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