Social Security recipients missing out on $182,000 by claiming too early: Study [ad_1]

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Social Security recipients missing out on $182,000 by claiming too early: Study

Rachel Schilke

November 21, 11:05 AM November 21, 11:05 AM

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Social Security beneficiaries are missing out on receiving close to $200,000 by claiming too early, according to a study.

Atlanta Federal Reserve Bank's director of research, David Altig, and Boston University economists Laurence Kotlikoff and Victor Yifan Ye, conducted a study that found 90% of recipients should wait until they are 70 or older to claim benefits in order to receive more, but only 10.2% do so, per the study.

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While people are eligible for Social Security benefits at age 62, they receive 30% less when they claim at that age, the researchers found. They used an analytical tool that incorporates all major federal and state tax and transfer programs.

Researchers discovered the median boost to households is $182,370 and a 10.4% increase in lifetime spending. By waiting for the benefits, the reduction in income is a median of $2,714, per the study.

Lifetime spending gains exceed 17% for one in four and exceed 26% for one in ten.

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Millions of Social Security recipients born from the 21st through the 31st of their birth months are set to receive their monthly retirement payments, worth up to an average of $1,668, in two days.

Analysts estimate Social Security insolvency may occur as early as 2034 unless action is taken by Congress to prevent it.

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