A recent study reveals four reasons why people start taking Social Security retirement benefits early, passing up the higher monthly benefits they could receive by waiting:
- Fear of loss. People who have a stronger aversion to financial loss also tended to say they would claim earlier. To them, the researchers said, a delay in receiving their benefit checks “looks like a potential loss.”
- Life expectancy. It’s intuitive that an individual who doesn’t expect to live as long might want to start his benefits as soon as possible, and that’s what the analysis concluded. The researchers found that 10 years added to one’s life expectancy will delay a Social Security filing by six months.
- Fairness. The individuals surveyed were asked whether they agreed with several statements about Social Security, such as “I feel that I have earned these retirement benefits.” The more strongly an individual agreed with such statements, the more likely they were to say they would file for their benefits early.
- Patience. This finding was self-explanatory: the more impatient an individual, the more likely he is to claim early.
R they kidding?
ReplyDeleteOne of the most, if not THE MOST, important reason people take benefits early amounts to "take the money and run". They don't trust the goverment to contine the program. Period. And why should they? The president and the rest of the feds have given the public absolutely no assurances whatsoever that they want to keep the program intact. In fact, just the opposite. The president of the United States, Barack Obama, a supposed democrat, is trying to fleece Americans with his Chained CPI fraud.
To the authors of this "study": surely you jest.
I have a stronger aversion to loss than most people, but I plan to take Social Security as late as possible. Sure, I'll lose money if I die early, but if so, I won't need the money. But waiting until 70 will give me a decent check, inflation adjusted, as long as I live. I reason I'm averse to a loss is that I want some financial security, and a bigger Social Security check will give me that.
ReplyDeleteI'm not worried that the gov't won't continue the program. There might be some cuts, but I don't think that will change my logic above.