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

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