5 Irrational Retirement Decisions

These common retirement planning mistakes will hurt you in the long run.

These common retirement planning mistakes will hurt you in the long run
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[Read: 12 Ways to Increase Your Social Security Payments.]

Claiming Social Security at 62. Many people sign up for Social Security as soon as they are eligible at age 62. However, your payments will be permanently reduced if you sign up at that age. Most baby boomers won't qualify for the full amount of Social Security they have earned until age 66. And Social Security payments will be further increased for each year of delayed claiming up until age 70. "When you sign up at 62, you are going to get a 25 percent haircut off what your benefits would be at 66," Phillips says. "If you die early, you would be better off taking the money at 62. If you have longevity in the family – anything beyond 75 – you will really be much better off to wait."