More than half of all seniors who appled at age 62 for Social Security early retirement benefits later regretted doing so, according to the findings of The 2019 MassMutual Social Security Pulse Check.
While 30 percent of a survey of 618 respondents said they had filed for early retirement benefits at age 62 or younger, more than one-third (38 percent) of those respondents wished they had waited to age 70.
Not all respondents felt they had a choice, according to the findings. A majority of respondents (53 percent) said they had filed for early retirement benefits out of financial necessity, such as not saving enough, while one-third (30 percent) said they filed early as the result of unforeseen circumstances like health issues or employment changes.
“When to retire and file for Social Security retirement benefits should be your choice, and this study underscores the need to plan ahead for the unforeseen and save as much as you can,” Mike Fanning, head of MassMutual US, said in released comments.
Fanning said that by applying before age 70 for retirement benefits, a married couple that lives into their nineties could be leaving a six-figure retirement income on the table, or as much as $2,000-$4,000/month for life and $1,000-$2,000/month for a surviving spouse.
“Many are not saving enough for retirement and need to access funds the minute they can – regardless of the longer term impact of the decision,” he said.
Despite Fanning’s admonition, 79 percent of survey respondents said they had the appropriate amount of information about when to file for Social Security retirement benefits, and more than half said they didn’t get help or advice about the issue.
David Freitag, a financial planning consultant with MassMutual, said in released comments that while each person needed to do their own careful analysis based on their unique situation in life, consulting a financial advisor could help.
MassMutual surveyed 618 online respondents aged 70 or older between March and April 2019 in collaboration with Age Friendly Ventures.