The most common age people start drawing Social Security retirement benefits is 62, the earliest possible age. About 39% of Americans opt to start getting checks then, and 51% start collecting benefits before age 65. Just 4% wait until the maximum claiming age of 70, AARP results showed.
Receiving the highest possible Social Security check was “very” or “somewhat” important to 75% of respondents while getting checks as soon as they could was rated as high for 71% of adults surveyed. The two factors are at odds since the longer someone waits to claim Social Security retirement benefits (up to age 70), the larger their monthly check will be.
Meanwhile, Americans’ research and decision-making starts late in the game for many. Despite the significant and lasting financial implications of the decision, 73% of Social Security recipients waited to weigh the options until they were within two years of when they ultimately claimed benefits, and 43% waited until they were within one year.
Despite relatively quick decision making—as well as the divergent desires of early claiming and higher checks— only four in ten (36%) Social Security benefit recipients were able to name an issue that they wish they had understood better back when they were deciding when to claim benefits.
The most common wish articulated by seniors who did answer the question regarding Social Security? They wish they had waited longer to start collecting their checks.
It is also noteworthy that advisors and financial professionals are not mentioned as a source of information regarding Social Security decisions.
Most seniors’= said they got information to make their decision about benefits from the Social Security Administration (62%). In addition, 38% asked friends and 32% consulted family. The most common source of information about Medicare coverage is health insurance companies (44%), followed by the Centers for Medicare and Medicaid Services (37%). About 49% of respondents did not know they can get free, personalized help through their state’s health insurance assistance program.
When asked about Medicare, seniors’ most common wishes were for more details about Medicare costs, coverage and supplemental insurance. The survey found awareness of the annual open enrollment to be high (87%); however, just 51% of Medicare enrollees say they regularly compare Medicare coverage options.
The AARP’s national survey was conducted by the University of Chicago in September, 2018 and included 1,236 adults ages 65 and older currently either receiving Social Security retirement benefits (1,071 respondents) or covered by Medicare (1,208 respondents).