“Americans Lose Trillions Claiming Social Security at the Wrong Time,” by Ben Steverman, ThinkAdvisor
“Almost all American retirees claim Social Security at the wrong time, a new report estimates, which means they will miss out on a collective $3.4 trillion in benefits before they die. … Only 4% of U.S. retirees are waiting until age 70 to claim Social Security; some 57% should be doing so, the report calculated. Meanwhile, more than 70% start taking checks before turning 64, a time when—ideally—only 6.5% of retirees should be cashing checks. The lost income from these less-than-optimal decisions amounts to about $111,000 per household, the researchers estimate.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Who’s dropping the ball here? I’m guessing Social Security. Unlike private financial advisors, who have their clients’ (and their own) interests in mind, SSA has no incentive to help beneficiaries maximize returns.