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Many Retirees Face Costly Social Security Claim Mistakes

4/21/2026

25 5 Full Breakdown

Summary

Story summary

New research from Boston University and the Federal Reserve Bank of Atlanta shows that many American retirees make costly Social Security claim errors.
Only 6% wait until age 70, risking about $182,000 in lifetime discretionary income.
Claiming early at 62 offers immediate income while reducing monthly benefits.
The Social Security Administration's full retirement age is now 67 for those born in 1960 or later.

History

Historical Context

The Social Security Amendments of 1983 raised the full retirement age to 67, addressing funding concerns amid projections that half of retirees would claim benefits early, reducing their lifetime income. Today, only 6% of retirees wait until age 70, risking an average loss of $182,000 in discretionary income, highlighting ongoing challenges in retirement planning and the need for informed decision-making regarding benefits.

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Story summary

New research from Boston University and the Federal Reserve Bank of Atlanta shows that many American retirees make costly Social Security claim errors.
Only 6% wait until age 70, risking about $182,000 in lifetime discretionary income.
Claiming early at 62 offers immediate income while reducing monthly benefits.
The Social Security Administration's full retirement age is now 67 for those born in 1960 or later.

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