Social Security Mistake: Why 90% of Americans Are Claiming Early
Understanding the Social Security Mistake
Social Security benefits are a critical component of retirement funding. However, a troubling trend has emerged: 90% of pre-retirees in America choose to claim their benefits before reaching age 70, as revealed by the 2023 Schroders U.S. Retirement Survey.
Why Claim Early?
Many individuals opt to claim early due to pressing financial needs or a lack of awareness regarding the benefits of waiting. Claiming at 70 can significantly increase monthly benefits, contributing to better financial stability in later years.
Consequences of Early Claims
- Reduced monthly benefits for life
- Increased risk of financial shortfall in retirement
- Missed opportunities for higher payouts
It's essential to consider these factors carefully before making a decision.
Strategies for Better Decision-Making
To avoid this widespread Social Security mistake, individuals should:
- Evaluate their financial situation: Determine if they can afford to wait.
- Consider longevity: Assess life expectancy and health.
- Seek professional advice: Consult financial advisors for tailored strategies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.