Study: Retirees lose by taking Social Security at wrong time
It’s tough to decide when to start taking Social Security benefits and it appears many people are shorting themselves with their choice.
A new study finds that only 4% of retirees start claiming their Social Security benefits at the most financially optimal time. And current retirees collectively will lose $3.4 trillion in potential income to fund their retirement because they started drawing benefits at a less than ideal time.
According to the research from United Income, an online investment management and financial planning firm, that’s roughly $111,000 per household.
Americans typically can start claiming their Social Security benefits as early as age 62 and most adults do so by the time they turn 63. But the size of the monthly benefit grows for each year they wait, maxing out at age 70.