In a Forbes column, Dan Doonan writes that the Social Security Administration (SSA) has received an unusual amount of attention this year. A new issue that has cropped up relates to a recent rise in early claiming of Social Security benefits.
Both The New York Times and The Wall Street Journal recently reported that the Urban Institute noticed a spike in people claiming their Social Security benefits, often at early ages. While several factors are cited explaining the increase, SSA staff say that much of the rise in early claiming is driven by fear about the future availability of Social Security benefits.
Unfortunately, fear-driven decision making can undermine long-term retirement security. According to the Urban Institute, claiming Social Security at age 62 instead of age 67 (the full retirement age for those born in 1960 or later) translates into a whopping 30 percent reduction in monthly benefits.
Happy birthday, Social Security! President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935, establishing a program that would grow over 90 years to become the foundation of retirement security in the United States. As we celebrate the remarkable accomplishments of Social Security during this anniversary month, it’s also important […]
To commemorate the program’s 90th anniversary, Dan Doonan, Executive Director, National Institute on Retirement Security, issued a statement on the importance of the program and the need for a bipartisan solution to address funding.
For decades, Americans have been told that Social Security is teetering on the brink. Warnings about a looming mismatch between the program’s revenues and expenses have become part of the Social Security narrative. As a result, it seems like the system is in constant need of reform. It’s a compelling story, but it’s not the […]