A poster on a financial blog I like to read mentioned SS applications for early retirement were running way ahead of projections. The number of people taking early retirement in 2009 was equal to what had been projected for 2012 when the first of the boomers hit 65.
I'm sure there are lots of reasons for that, but one I have never seen mentioned is using the Social Security income to fund your business startup. So many of the posters on those forums can see nothing but gloom and doom in the future "We are so screwed." is a common post.
However, if you see a train wreck coming it doesn't make a lot of sense to stand there and wait for it to run over you. People with insight, ambition, and some fear as an incentive should at least try to do something.
If you are 60+, don't see much future for your job, just got fired/laid off, worried about your retirement income, and have a business idea you always wanted to try, SS income from taking early retirement looks a lot like venture capital to me. It provides living expenses during the startup stage and if your idea is successful the profits will come after you are old enough for SS to allow unlimited income. It "buys" three years of your full time, while your health and abilities are at their best, to do something pro-active about your future. You only loose if your idea doesn't work and you live more than 12 years. (that's approximately how long it takes for the discount you take to retire early to be made up from the larger payments if you waited to retire.)
I am an incurable optimist, but it has never been easier to sell products to a global audience. Web sites and web hosting are cheap and simple ones require little technical excellence. Craigs list is free, the deals are all cash. If you take early retirement you have all day, every day to figure out how to make a living from your entrepreneurial efforts.
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