According to a study from The Nationwide Retirement Institute, many Baby Boomers are planning to delay their retirement. The number one reason cited for this delay is the coronavirus.
The study found that 24 percent of Americans 56 and older will push back the time frame for retirement because of the virus. The report also showed that 15 percent of Boomers plan to take Social Security later than they expected and eight percent plan to take payments earlier.
No matter what Boomers end up doing, a separate Nationwide Retirement Institute report on Social Security showed some worrying signs. As Money notes, the study found that one-third of Boomers mistakenly think that if they claim their benefits early, the payments will increase when they reach full retirement age. That’s not true — your payout is set depending on when you start taking them. There is no boost. The report also found that 66 percent of Boomers are worried Social Security will run out during their lifetime. That’s also incorrect. By all accounts, the program is on track to make payments through at least 2034.
The fact that Boomers are planning on delaying their retirement is a good sign. It shows some awareness about just how hard it is to live a comfortable post-work life. However, many Boomers would do well to educate themselves more about Social Security so they’re not taking payouts too early and jeopardizing their future.