Social security is a very sensitive topic in the US. There is a lot of confusion about when is the right time to start withdrawing benefits from your social security account. It is recommended that you wait till you are 70 years old to do so but few people wait till that long. Some people don’t even wait till full retirement age and start withdrawing their contributions when they reach 62 years.
But according to the results of a new survey, more than a quarter of new retirees said that, if given a second chance, they would delay taking money out of their social security account.
But the survey also revealed that most people wouldn’t have it any other way, for a number of reasons.
The third Nationwide Retirement Institute survey of nearly 1000 people who are 50 years and older, has found that 23% of people will like to delay the date when they withdraw their social security savings to a later date.
24% of recent retirees said that the money they got from social security was not as much as they had expected. Of those who said they would not change when they started drawing the benefits, 39% said they were forced to do so by a life event.
37% of those who had retired recently, said that they were not able to live the kind of retirement they wanted because of health problems. Around 80% of those said their health problems came quicker than they had expected.
Of those who would not change the date when they started taking their social security benefits, gave a number of reasons for why they had started doing so. Some of them had retired earlier than they had planned. The second reason was that they needed the money.
The third reason was they were forced to withdraw the benefits earlier because of health problems. Finally, some of them thought they did not have enough time left to optimize benefits from payouts.
The US Social Security Administration has warned that the system will run out of money by 2034 forcing it to cut benefits by 21%. The agency currently pays out close to $800 billion every year, to close to 60 million Americans.