Millions of Americans have made mistakes between Social Security.

Additionally, many Americans have shown that they will acquire cash early amid concerns about the future of the program. In just 7 years, Social Security will be like that. Reach the fiscal cliff It could leave millions of American retirees $18,000 annual cutaccording to a Recent analysis By the Responsible Federal Budget Committee (CRFB).

Important findings from the AARP report relating to Americans’ knowledge of Social Security:

• Most Americans (74%) believe they are informed of how Social Security works, but few people can correctly identify the optimal age they claim. Only 24% know that the earliest age to claim retirement benefits is 62, while only 19% identify age 70 as the point at which monthly benefits are maximized..
• Over 80% of Americans say it’s important to understand the best age to start profits. But I didn’t know that waiting until I was 70 would bring me the best monthly payment possible.
• This lack of knowledge has important consequences. By claiming before age 70, beneficiaries will permanently cut monthly payments. “Most lack the knowledge necessary to make wise decisions about when to begin receiving your retirement benefits,” the report states.
• The understanding deficit is particularly pronounced among people under the age of 50, but even among those over the age of 50, 66% did not know the age of maximum profit. This points to systematic issues in retirement planning and public education..
• The practical meaning is that millions of Americans accidentally leave money at the table By asserting profit before the age of 70, in many cases under the false impression that the previous claim is necessary or optimal..

AARP 2025 survey provides evidence that the majority of Americans don’t know that delaying Social Security retirement benefits until the age of 70 will maximize their monthly income..

Monthly benefits at FRA: ~$1,800 (like AS) Recent SSA data))

Claimed in 65: That’s about 86.7% of FRA’s profits, or $1,560 a month.

Claim in 70: As a result, you’ll get 124% of your FRA profit ($2,232 per month)

Life expectancy: Approximately 85

Lifetime benefits comparison (age to age 85):

• Claimed in 65:
  $1,560/month x 240 months = $374,400
• Claimed at 70:
  $2,232/month x 180 months = $401,760

That’s The difference of $27,360but…

Why real losses may be higher:

• you Living beyond 85higher monthly payments continue to increase.
• If you have Spouseyou can also reduce the profits of survivors based on your records.
• Cost of living adjustments (COLA) Compounding over time applies to higher base amounts.

summary:

• Assert through 65 means Lower benefits from 5 years or older.
• I’m waiting until 70 means Lagged but higher advantage It’s a more advantageous long term.
• For the average American who is completely retired, claiming at 65 instead of 70 could easily mean losing $50,000-$100k+ Total lifetime income.

For this story, luck Generated AI was used to assist with initial drafts. The editors checked the accuracy of the information prior to publication.