A recent study from the National Bureau of Economic Research reveals that more than 90% of Americans would benefit from waiting until age 70 to claim Social Security, yet only 10.2% actually do. This discrepancy highlights a significant opportunity for individuals to maximize their lifetime benefits through delayed claiming, despite the immediate financial pressures many face.
The research underscores that while claiming earlier may provide short-term relief, individuals who wait until 70 can secure substantially higher monthly benefits. For instance, the break-even ages show that those claiming at 66 or 67 would need to live into their early 80s to see the advantages of waiting. Given that life expectancy for a 70-year-old is approximately 84 for men and 86 for women, many could be missing out on significant funds by opting for earlier claims.
For financial professionals, this data serves as a crucial reminder to guide clients toward informed decisions about Social Security claiming strategies, emphasizing the long-term benefits of waiting until age 70 when feasible.
Source: fool.com