NRRI Study: Delaying Social Security Improves Retirement Readiness

  • Originally published August 17, 2012 , last updated October 20, 2015
  • Social Security
NRRI Study: Delaying Social Security Improves Retirement Readiness

The Center for Retirement Research recently made updates to a report showing the National Retirement Risk Index (NRRI), which measures the share of American households “at risk” of being unable to maintain their pre-retirement standard of living in retirement. The recent update shows that in the wake of the financial crisis, 51 percent of working households are at risk of being unprepared for retirement at age 65. However, at a retirement age of 70, about 86 percent of households are prepared for retirement.

The importance of Social Security and the pattern of its benefit payments can be seen through the increase in readiness from ages 62 through 70 and then leveling off thereafter. Social Security benefits increase 8 percent per year between ages 62 and 70, due to the actuarial adjustment before the Full Retirement Age of 66 and the Delayed Retirement Credit between 66 and 70. After the age of 70, Social Security benefits remain constant.

This report suggests that it’s often better to delay Social Security benefits, which is a common recommendation from Social Security Timing®, our patent-pending software program. When to elect Social Security may be the single most important decision of your clients’ retirement. Let Social Security Timing® help you and your clients in this important decision.

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