In conjunction with the retirement planning event that the CFPB is holding in Washington, D.C. today with the Social Security Administration, the CFPB has issued a report, “Issue Brief: Social Security claiming age and retirement security,” and unveiled a new online “Planning for Retirement” tool.
The report discusses the CFPB’s research regarding the important role Social Security plays as a source of income for current and future retirees and the potential for many Americans to face financial insecurity in their retirement years. The CFPB found that many retirees take a substantial reduction in benefits by starting to collect before their full retirement age. It also found that a lack of and inaccurate information hinders the ability of many people to make an informed decision about when to claim benefits, citing to studies indicating that people claiming Social Security benefits early have less information about benefits and claiming options as compared to those who claim at their full retirement age or later. The report makes five recommendations to help consumers make an informed decision about when to claim benefits.
The new online “Planning for Retirement” tool is intended to assist consumers in deciding when to claim social security benefits. It allows consumers to estimate how much they can expect to receive in benefits at different ages.
We think consumers will find the information the CFPB has provided through the report and tool to be very helpful as they plan for retirement.