Wait It Out

Wait It Out

According to a new report, almost everyone claims Social Security at the wrong time. A study from United Income, a money management company for retirees, found that 96 percent of Americans choose a “suboptimal” time to claim their monthly checks. Claiming early, in particular, leads to lots and lots (and lots) of lost cash.

Social Security is a big part of retirement for many people. The United Income report found that about 50 percent of current retirees say that Social Security makes up more than half of their yearly income, and 28 percent claim it makes up more than 75 percent. It seems like everyone needs Social Security, but they’re not ensuring it pays out the most it can. The earliest you can claim Social Security is 62. However, the best time to claim your payments is 70.

The United Income report analyzed 2,000 American households and found that just 4 percent of people claim their Social Security at 70. Those early claims have resulted in more than $3.4 trillion in total, collective losses. The average retiree who takes Social Security at a suboptimal time (any age other than 70) will lose out on an extra $111,000. While the researchers said 70 was the optimal age for most people, there are exceptions to the rule — like those with chronic illnesses, etc.

The researchers behind the study theorize that the main reason people claim their checks too early is that it’s psychologically difficult. In essence, you’re trying to figure out how long you’re going to live. The fix? The authors of the report suggest using savings in your 60s (if you have to) in order to guarantee a larger Social Security check later. If you claim at the right time, the report estimates income during your 70s and 80s will increase by more than 25 percent. Patience is a virtue… and a bigger payday.

Articles
Waking Worries
Waking Worries

The unemployment rate is at its lowest point in 49 years. Interest rates and inflation are low. But while the economy is doing we...

Read More

Revamp That Resume
Revamp That Resume

Are you on the hunt for a new job? If so, you should give your resume a once (or twice) over. According to Tina Nicolai, a former...

Read More

First Job Guide
First Job Guide

For many teens, when school is out, the summer job is in. If this is your teenager’s first summer finding employment, there are a...

Read More

Know Your Coverage
Know Your Coverage

The 2019 Atlantic hurricane season is upon us. While it’s expected to be a relatively normal season— we can expect 14 named storm...

Read More

5 Social Security Myths
5 Social Security Myths

You’ve probably heard a lot about Social Security — it’s an important topic, particularly for those of us nearing retirement — bu...

Read More

Feeling Good
Feeling Good

A new Gallup survey of adult Americans has found that most people are feeling optimistic about their money and financial situatio...

Read More

Hard to Move
Hard to Move

Real estate agents can be a great source of information when you’re trying to sell your house. They often know what works and wha...

Read More

Wrong Number
Wrong Number

According to a recent report from the phone app Truecaller, one out of every 6 Americans has lost money due to a phone scam. That...

Read More

Online Isn’t Always Cheaper
Online Isn’t Always Cheaper

We understand if you do a majority of your shopping online, but there are times when you could be making a mistake. Some items, b...

Read More

Website Terms of Service

Please read these "Website Terms of Service" carefully before using SavvyMoney Checkup ("site", "website"). Accessing this site, or making this site available to any third party, indicates that you have read and accept these terms.

  1. Materials. Materials in this site are copyrighted and all rights are reserved. Text, graphics, databases, HTML code, and other intellectual property are protected by US and International Copyright Laws, and may not be copied, reprinted, published, reengineered, translated, hosted, or otherwise distributed by any means without explicit permission.
  2. Links to Third-Party Sites. Linked, third-party sites from website are not under the control of the Licensor. The Licensor is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites.
  3. Confidentiality of Codes, Passwords and Information. Licensee agrees to treat as strictly private and confidential any username, password, user ID, and all information to which you have access through password-protected areas of website.
  4. Maintenance. Licensor shall provide Licensee any new, corrected or enhanced version of the site as it becomes available. Such enhancement shall include all modifications to the site which increase the speed, efficiency or ease of use of the site, or add additional capabilities or functionality to the site, but shall not include any substantially new or rewritten version of the site.
  5. Limitation of Liability. Licensor shall not be responsible for, and shall not pay, any amount of incidental, consequential, or other indirect damages, whether based on lost revenue or otherwise, regardless of whether Licensor was advised of the possibility of such losses in advance. In no event shall Licensor's liability exceed the amount of license fees paid by Licensee, regardless of whether Licensee's claim is based on contract, tort, strict liability, product liability or otherwise.