According to a recent study, social security represents approximately 33% of all income received by US retirees. This amounts to a staggering $1.0 trillion in annual benefits. While this sounds like great news for retirees, the research also suggests the impact could have been even greater if more had waited to enroll. Essentially, the lost income from sub-optimal claiming strategies was greater than the actual impact.
Below are a few interesting points from the study.
- Current retirees will collectively lose $2.1 trillion in wealth because they made a sub-optimal decision about when to claim social security. This represents approximately $68,000 per household.
- Only 4% of retirees make the financially optimal decision about when to claim.
- It was estimated that 57% of retirees would have built more wealth if they had delayed claiming until 70 years old. Only 6.5% would have had more wealth if they had claimed prior to 64 which is when 70% of retirees claim currently.
The goal in claiming social security is to begin the income stream as soon as possible without sacrificing benefits over the long haul. There are multiple options to consider before making the decision and the optimal combination of decisions is different for everyone.
If you would like to better understand the social security system in order to optimize your retirement income, you are invited to attend the upcoming seminars taking place on September 12th and October 10th in the Alpharetta, GA area.
Feel free to click the following link, https://socialsecurityauthority.com/ to learn more and to register. Hope to see you soon!