Please ensure Javascript is enabled for purposes of website accessibility

Social Security: Why Nobody Wants to Wait for Benefits

By Dan Caplinger - Feb 22, 2014 at 8:35AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Most people understand their benefits will be higher if they wait longer to claim them, but few do. Find out why.

Millions of retirees rely on Social Security, yet a surprising number claim their benefits as early as possible. Given that waiting can boost your benefits substantially, why do so many refuse to consider waiting?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through three factors that explain why so few retirees wait to take Social Security later. Dan notes that with most breakeven dates for payouts extending 10 to 15 years into the future, many new retirees aren't able to conceive of living such a long time. Dan then points out that most people have already delayed their plans for retirement by working longer, and further delays aren't something many retirees are even willing to consider. Finally, Dan observes the fear that many benefits recipients have about Social Security rules changing. Dan concludes that even though some of these fears are more valid than others, the net result is that many won't take full advantage of the protection Social Security offers.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.