Newmark, C. M. & Walden, M.
(1995). Should you retire at age 62 or 65?. Financial Counseling and
Planning, 6, 35-44.
Should You Retire at Age 62 or 65?
Craig
M. Newmark (1) and Michael
Walden (2)
Retiring at age 62 allow
pensions and Social Security payments earlier, with three more years of leisure
time. Waiting to retire at age 65 will probably give the retiree larger pension
and Social Security payments plus the earnings from three more years of work.
We present a methodology for analyzing this decision. We present the cost of
retiring at age 62 in terms of foregone income per hour of leisure gained
between age 62 and age 65.
Key Words: present value,
retirement planning
1. Craig M. Newmark, Associate Professor, Department of Economics, North Carolina
State University, Box 8109, Raleigh, NC 27695. Phone: (919) 513-2878 Fax: (919) 515-5613. E-mail: craig_newmark@ncsu.edu.
2. Michael Walden, Professor, Department of Agricultural and
Resource Economics, North Carolina State University, Box 8109, Raleigh, NC
27695. Phone: (919) 515-4671 Fax: (919) 515-1794. E-mail: michael_walden@ncsu.edu.