Important strategies about claiming spousal benefits also got short shrift. And other crucial information didn’t pop up in the online application process, such as how benefits are tied to your highest 35 years of earnings, as well as the importance of factoring life expectancy into your decision on when to claim.
The SSA’s reply to the report, which is included in the report itself, notes that a lot of factors go into deciding the best time to claim.
“There is no one age that is best for everyone; claimants must select the age that is best for them based on their individual circumstances, including other income, assets and obligations, health and family longevity, and the Social Security benefits available to dependents,” the agency said. It also noted that the GAO’s “small sample is not reflective of the millions of retirement claims and related discussions we have with the public every year.”
The SSA did agree with many of the GAO’s recommendations for improving the process, with some tweaking. They include making sure claims specialists ask people if they know the benefits of delaying claims and at least show them what estimated benefits would be at their current age and at age 70; tell claimants that additional years of work could boost their future benefit ; and provide information about how life expectancy factors into when it may be best to claim benefits.
Kotlikoff offers his own recommendation: “So let me speak directly to the 40,000 Social Security staff across the country. An easy way for you to learn the rules is to buy a copy of my book (co-authored with Paul Solman and Phil Moeller) called Get What’s Yours: The Revised Secrets to Maxing Out Your Social Security. Please ignore the jokes. They aren’t directed at you.”
This article was provided by Bloomberg News.