A psychological opinion for why people claim Social Security early
In spite of the fact that there’s an eight year window of time during which people can claim their Social Security benefits, and despite the reality that the earlier you claim, the less your benefit will be (and vice versa), by far the majority of people claiming Social Security benefits apply well before they reach there full retirement age. Conversely, waiting until the maximum benefit amount is available at age 70 is a decision enjoyed by a relatively small 7% of beneficiaries. So, what are the reasons that most people claim benefits early, even knowing that they are leaving money on the table? This UCLA Anderson School of Management study explores the psychological reasoning behind Americans collectively sacrificing $3.4 trillion in benefits by claiming Social Security early. Click here to read more.