Dear Bernard,

What do you know about Social Security? As I get older, and the relationships we work with get older, this is a question I seem to get as much as any other.

What I have learned from talking to people is that there are a wide variety of misconceptions about how the program really works. Most people get the basics: I work until I am 62 or older and I should get some type of benefit. If I wait after age 62, I should get a bigger benefit.

However, the decision on when to claim Social Security is a source of anxiety for those nearing retirement age. The decision you make is not like buying something on Amazon. You simply cannot have it sent back for a refund.

According to the Schroders 2024 U.S. Retirement Survey, the most popular ages American non-retirees plan to file for Social Security benefits are 65 (23%) and 62 (12%). Even with this, half of non-retired Americans report they are “concerned” or “very concerned” about outliving their assets in retirement.

The survey also found that 43% plan to take Social Security before age 67 – the full retirement age for those born in 1960 or later. Only 1 in 10 pre-retirees plan to wait until at least age 70 – when an individual reaches the maximum monthly benefit.

While as many as 74% of Social Security beneficiaries know that waiting longer increases benefits, there are a variety of reasons for claiming benefits early. These include:

• Will need the money (39%)
• Concerned Social Security may run out of money or stop making payments (38%)
• Want access to the money as soon as possible (36%)
• Advised to take it earlier than age 70 (12%)

The survey also noted that non-retirees, on average, predicted that to live comfortably they would need $4,947 per month. That’s higher than the $4,258 of monthly income that today’s retirees report they are generating.

While these numbers are part of a survey, and not a one-size fits all sum, more than half (57%) stated the idea of no regular paycheck as scary and 22% rated it even higher as terrifying.

The top income sources, aside from Social Security, that non-retired Americans expect to draw upon after retiring include:

• Cash savings (60%)
• Workplace 401k, 403b or 457 plan (48%)
• Spouse’s workplace 401k, 403b or 457 plan (37%)
• Investment income (36%)
• Spouse’s pension plan (27%)

No matter when you decide to claim your Social Security benefits, the most important factor is to understand all of your options. An informed decision can help reduce stress and give more confidence as you move forward.

As we have stated in the past, we have various sources for both information and benefit calculations for you. These are complimentary items we can provide to you or your friends or family. You simply need to reach out to us, and we will be happy share our knowledge and leadership.

You can reach out to us via the links under our pictures to set an appointment or send us an email.

As always, thanks for reading.

Bernie & Chad